Horton Hears a HUD
I was reading about the changes in HUD homes, and saw this blog, which made me want to re-blog so that the Active Rain community can read and digest the changes. I am a selling agent registered with HUD, and their process definitely needs improvement!
It's been a big week for news, what with all the uproar over politics vs religion, environmental issues vs economic considerations, etc. In the midst of all this, HUD quietly held a national webinar this week to announce some very major changes in the way HUD homes are being marketed. Did you catch it? If not, you can go to this link for a replay: Important Changes to HUD Home Sales. Complete the registration, and you are immediately taken to a replay of the live webinar. Here is a brief summary of the changes:
- Separate contractors responsible for property management and sales / marketing, including use of local NEIGHBORHOOD brokers to list and market HUD homes
- HUDHomestore.com - one national website for all HUD homes transactions, including the new registration process for all Brokers AND real estate agents who sale HUD homes
- Transaction commission of 6% to be split 50/50 with the local neighborhood listing broker and the selling broker
- Exclusive owner/occupant bidding period extended to 30 days from the current 10 days
- Earnest money must accompany contract, once a bid is accepted, broker has 2 business days to complete contract docs and submit
- ELECTRONIC Lock Boxes will be used instead of the infamous HUD keys (this one is still under debate)
- Properties will be listed on a daily basis rather than the currently weekly schedule.
The message is loud and clear. HUD is now in the BUSINESS of selling homes, and they're starting to manage the process in a more business-like manner. They are recruiting local neighborhood brokers who are "go-getters" to list and market the property. The listing / showing / commission paying aspects of HUD home sales are now more in line with current practices in the real estate industry. As long as several brokers on the local level are selected to list AND MARKET HUD homes, and they do their job for HUD just as judiciously as they would for an individual home seller, I can foresee the changes as having a very positive impact on the market, with HUD homes helping to stabilize home prices, rather than being an active force to drive down prices.
Changes are being transitioned in during the month of September. Happy HUD home selling!Teresa B Cooper, CPA, e-Pro Realtor(R)
Home Solution Real Estate Services, N Charleston, SC
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