Well, the summer is just about here and not to sound too cliché...but our housing market is getting hot especially with our HUD Properties.
Here are 3 things buyer's need to know about buying HUD properties;
1.) HUD uses a blind bidding system, and the original list price is the price HUD determined is the market value by an appraisal, so if you want to get a loan for this property, you can't offer more than that price, as the lender's will not give you any more money that that price. Doesn't mean you can't offer more but just be prepared to come out of pocket with the amount over.
[i.e. list price $100,000, you offer $104,000 you will be coming to the closing table with your closing costs and $4,000 + your regular down payment of 3.5% for FHA (owner occupant) or 10-20% for conventional].
2.) HUD gives owner occupants a 10 day time period at the beginning of each listing, so they are not having to bid against investors right off the bat. On the flip side, that means investors can't have a agent/broker put an offer in for them until the end of the 10 day period.
3.) HUD sells all their properties As Is, but will allow you to do an inspection but you must get permission from HUD to turn on the utilities at your cost, they give you a 72 hour window to make this happen so having your inspector(s) lined up would be preferable. If items found that will hinder your ability to get a loan on the property, Hud will either fix, or reduce the price accordingly. (they determine which they will do) If it is something that isn't a loan concern it is the buyer's responsibility to repair after they purchase it.
Well that is my tip for you today and I hope you find it useful...as always, if you need more information about this topic or you just want to get some help buying a home in Arizona. Please call or email me. Or come by my website to see what's available...I look forward to hearing from you.Take care,
United Broker's Group