Why do I need a real estate agent to bid on a HUD home?

thanks Richard, reminds me I should have our NAID #... just never know.... i want to help my clients in any aspect of a transaction~ best to know it all before they ask...

Good post that is a timely topic that many consumers will be asking this year.

HUD homes are popping up more and more and I've had to explain this to some buyers who are considering placing a bid. It's amazing how reluctant some people can be to use the services of a real estate agent.

The funny thing is that many of the people trying to by pass us have no idea of what they are doing.

HUD homes are often a great buy! But I would remind buyers considering a HUD home to find an agent EXPERIENCED in dealing with HUD homes.  Many large brokerages are registered HUD brokers, but sometimes less than 10% of the agents in these larger brokerages (at least in my area) have any practical experience or training in the processes and forms used for HUD transactions.  If the agent doesn't know what a NAID number is, they haven't been trained.

Richard, I quit pushing Hud homes because the buyer is not allowed to turn the water on to check for leaks. Is it different in your area?

The agent also can save the buyer money.  By knowing what will be covered by the seller and what may be typically seller items being disallowed, the agent can make sure their client's bid covers these expenses and prepare his client.  Nothing worse than a surprise while reviewing the closing statement. 

We are seeing more and more HUD homes ... and the new rules are better than the old ones IMO. Lisa (#5) brings up a good point ... a broker here has about 6,000 agents under him and I doubt more than 1% have done a HUD deal.

Richard - the NAID #, just like my NRDS # is something that I have to look up every time I use it. As in any real estate transaction, the buyer is better served with their own representation from someone who understands the process.

Mike--Please don't misunderstand my statement about the NAID#, as I often have to go back and double check mine too.  My statement was that if the don't know WHAT A NAID# IS, they haven't been trained on HUD sales.