HUD owned (government owned) homes can be a great option, but they do have some hurdles that a buyer and agent must overcome in order to successfully get to closing.
Number one is that the agent must be a registered HUD agent in order to represent a buyer in purchasing the home. If you are considering buying a HUD home seek out a registered HUD agent to represent you.
The price that a HUD home in Snohomish County is originally listed for is what the appraisal for that home came in at. If there is a multiple bid situation and you wish to bid above the list price you need to be aware that you will have to pay the difference between the list price and what you bid in CASH. You will not be able to finance above the list price. There are ways around this requirement if you are using a rehab loan to purchase the property - ask your agent for details!
If you are in a multiple bid situation - you can still win over all the offers - even if they come in at the same purchase price - if your agent knows how to write the bid. There is an opportunity for your agent to structure the commission payment they receive to give you an advantage when they write the offer. Make sure your agent is savvy enough to know how the bids are analyzed so that they can make your bid the strongest!
Although HUD homes in Snohomish County are sold "As Is" - if there is a safety issue we can get those items fixed. The government does not want to sell you an unsafe home! Your agent should be able to write a request with language that will give the best chance of compeling the repairs.
There are strict timelines and paperwork protocols that MUST be observed when you are going under contract on a HUD home in Snohomish County. Ask if your agent has experience with the process - an inexperienced or inefficient agent can lose a home for you.
Don't shy away from HUD homes - just make sure that you have experienced representation and be prepared for some extra paperwork!
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