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Buying a HUD Property

By Tiffany Raiford

If ever you've heard of a HUD home, you're like pretty much everyone else in the country. The US Department of Housing and Urban Development sells HUD homes at a remarkable rate, making it virtually impossible for any Connecticut residents to avoid hearing about HUD homes. These government owned homes are a bit different than your average privately owned homes, however, in that they don't sell the same way.

Buying a HUD Home

Unlike your usual home for sale, a HUD home sells a bit differently. HUD homes become property of the government when a home is foreclosed. What this means is that the government now wants to sell the home, and will do so however it deems necessary. This could be at an auction, or it could be straight from a website where all the HUD homes in the area are listed. Additionally, HUD homes are sold as-is, meaning buyers cannot negotiate with sellers to have issues with the home fixed upon inspection. Buying a home from a private seller, on the other hand, gives you this negotiating option.

Submitting an Offer

Purchasing a HUD home is not too similar to purchasing a privately owned home. When you shop for a home that's owned and being sold by the current homeowner, you will walk through the house, talk to your real estate agent about submitting an offer, do some research to see what the home is worth and what you're comfortable offering and your agent will submit your offer to the seller. From there, you will wait for the seller to accept your offer or counter your offer.

With a HUD home, you can view the property and decide whether or not to put an offer in on the home, but you will go about this entirely different than mentioned above. You will create an offer with your broker (most are eligible to sell HUD homes) and he or she will submit your offer to the HUD website for your state. All offers are then posted on that site for everyone to see, like any other bidding process. If your bid is accepted, then you will be notified. If it is not, it will simply be denied. There is no such thing as a counter offer when it comes to a HUD home.

Another difference when purchasing a HUD home is the fact that neither you or the broker you use will ever speak to the seller of the home. Finally, anyone looking to purchase a HUD home is required to obtain pre-approval for a loan or offer a full cash purchase.

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