Because of the large inventory of unoccupied homes, HUD has offered some amazing deals on homes in their inventory. Some can even be acquired for as little as $100 down. Here are some things to keep in mind when looking at HUD Homes.
Know What You’re Buying
While the government has incentivized the purchase of HUD homes, particularly for those looking to live in them, there will be many enticing terms. However, not all HUD homes are created equal. That is to say that some homes are simply not worth the trouble. Make sure that when you are looking at HUD properties, that you thoroughly inspect and research the property before even thinking about purchasing it. Otherwise, you might end up with a mess on your hands.
HUD homes work with a ‘blind bidding’ process. This means that when you place your bid on the property, you will not see what other bids were placed on the same home. HUD will in most cases take the highest bid offered. Keep that in mind when you are making your offer. Using OpenOffer.com on HUD homes will greatly improve your ability to actually research and view some of the HUD homes that are listed on the San Diego MLS.
You Will Most Likely Get a Fixer Upper
Understand that most of these homes have been foreclosed on and in many cases, have not had an occupant in quite some time. This means that there will probably be things that you need to repair in the house. It is very rare to acquire an HUD home that is in perfect shape. Know that before you go in.
Keep Your Eyes Open
In this kind of time HUD properties pop up all of the time. Make sure that you know about all of the new properties on the market, before coming to a decision. There might just be something more fitting or better-suited to what you are looking for that just hit the market.
Once you have found a property that you are sure that you will be happy with, don’t hesitate. Because of the nature of the bidding process, and HUD’s desire to get rid of its excess demand as quickly as possible, properties that are enticing are very likely to go – quickly. This is why it is important that your agent, lender and insurer are ready when the time comes. Don’t lose out on a property because you were too slow to move!
This is filed under Foreclosures.