I know you're saying to yourself, "Why would I want to buy, or represent a buyer, on a HUD Home", but I'm here to tell you, HUD Homes are the Bomb, in so many ways.
First, as an agent, it's only a 1 page contract, there's an FHA appraisal already on the home that your client doesn't have to pay for, there's a property condition report that details repair issues with the home, and you deal directly with the asset manager. HUD also pays a generous commission, and closing costs up to 3% of the purchase price. AND the biggest bonus is that you can advertise these homes on your website, flyers, internet marketing, etc and don't have to ask the listing agents permission!!!
Second, as a buyer, there's lots of good reasons to choose a HUD Home, the first being that these homes offer financing, special purchase programs, and pricing that other sellers don't. These homes will often be newer homes in nice areas that were recently developed and that have significant infrastructure surrounding them. You can take advantage of the unique financing program that allows for repair costs added into the loan so that you can get the home fixed and able to choose materials of your liking. How about buying a home for 50% less than the asking price, well it's possible, if you fall into the career category of a teacher, firefighter, EMT, or Police officer. Pest inspections and Section 1 repairs are normally paid for by HUD, or are determined on a case by case basis.
Realize that 30% of all loans written in the U.S. in the last 5 years were FHA loans. and that HUD homes are homes that were financed using an FHA loan, but have been foreclosed on by the bank issuing the loan. So there is a good chance that we will start to see a large inventory of these homes hitting our markets soon, so be prepared, get educated and look for them in the MLS, and at the HUD's website at: www.HUDHomestore.com where you can find available HUD homes throughout the U.S.
Because these homes must be purchased using a real estate agent, it's important that you find an agent who is familiar with the HUD purchase process, as it is an entirely different animal than how we do business currently. So if you are an agent looking for some training on how to represent a homebuyer, please give my office a call and we will help you find your local listing broker and set up a training for you in your office. Our number is 916.283.7427
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