Buying HUD Homes
Buying a HUD home can be a rewarding experience if you know what you are doing. These are government foreclosed homes that are sold at a specific price to get back the money for the foreclosure claim. If you are looking to buy a home for an inexpensive price, buying a foreclosed home may be a great option to consider.
Be Prepaired for Repairs
Many times HUD Homes have plenty of wear and tear because the previous occupants lost it to foreclosure, and this usually means the former owner stopped making repairs. This means that you will be faced with getting it inspected and making repairs yourself. It is always a good idea to get a HUD home inspected because you need to make sure that there isn’t major damage to key features like pipes, electrical issues, gas, or structural or roofing problems before you buy it.
However, if you believe you can afford to fix these problems after having it inspected, go for it. The price might be lowered if you have a report on any major damage that needs to be corrected. Adding new pipes and other major fixes can add more value to the home, so if you’re in a mood for a fixer-upper, it’s easy to reestablish good equity in a HUD home buy. If you’re able to make all the needed repairs, you’ll also have actual knowledge of the condition of major systems, sometimes giving the new owner reassurance that things aren’t going to break down in the middle of the night.
As far as repairs to the actual house such as walls, doors, and other areas, this gives you a chance to be a bit creative. Buying a HUD home that needs kitchen repairs could lead to a very satisfying remodeling job. Since it is your property now, you can spice up the look of any area of the house you want, to make look shiny and new.
Upgrades for More Value
Another way to bring up the property’s value is by adding or upgrading missing or outdated features. Adding an island or granite countertops to the kitchen can make the home more enjoyable, and can also improve the resale value when it comes time to sell. Adding crown molding in the living room and den always looks nice.
Resurfacing old wood floors, or installing new flooring can improve the home’s beauty, while also giving you a sense of pride from improving something that might not be so visually appealing into something that is beautiful and comfortable. In addition, you can add spray foam insulation to make the home more efficient and lower the energy costs.
These are just a few ideas why buying HUD homes can be a great idea. You have all the freedom make it your own with a little creativity.
Who Can Purchase a HUD Property?
When many foreclosures first hit the market, they MUST be purchased by an owner/occupant. Meaning, the first availability goes only to potential buyers who intend to live in the property.
If that timeframe expires without being purchased by an owner/occupant, then investors have the ability to make an offer on the home. If you happen to have the cash on hand or can qualify for a loan, then buying a HUD home can be quite easy. You only need to find and work with a buyers agent. Your family will be very happy to have a home that they can design and create their own special features in.
Due to the situation that brought the home to the market in the first place (government foreclosure), there are sure to be many cosmetic fixes need all around. Paint is one of those aspects of home improvement that can really reflects your individual personality. Having a HUD Home means you can fix it up the way you want specific to your style and tastes.
Finding a HUD Home for Sale
The best way to get your hands on a HUD home is to find a good real estate agent with some knowledge of purchasing HUD properties. There are many real estate websites that show HUD homes for sale.
You can look down the list and check out the properties that interest you and preview any that interest you. Once you find the one you like, the next step is to secure financing. If you’re a cash buyer, then that part is simple. If not, there are many lenders who offer mortgages for HUD homes.
There are also laws and guidelines that must be followed to buy the home. These procedures protect you, the bank, and the Realtor, so following the rules is absolutely necessary. Once everything is finalized and the home is yours, let the repairs or remodeling begin.
You can have all sorts of fun putting in your own elbow grease to get the home looking and working like you want it. Improving a home yourself is a very rewarding experience. Not everyone has the time, patience, and talent to fix up a home themselves, but for those who do, it can be immensely enjoyable.
Don’t Get Burned
Buying a HUD home is a wonderful thing, but it has to be for you. If you go about things the wrong way, Murphy’s Law can easily come into play: everything that can go wrong will. So make sure that purchasing a home of this nature is good for you. If not, do not let this experience discourage you from being a homeowner.
There are still ways for you to get your foot in the door. You can purchase a new home or do a rent-to-own with the satisfaction of knowing you achieved your goal of home ownership. However, with HUD homes, there is an extra special feeling knowing that the repairs along with the improvements you make are yours, and will be specifically tailored to the likes of you and your family. This is what makes owning a HUD so wonderful.
Good Time to Buy
If there ever was a time to encourage home ownership it is now. Owning a HUD home is a great idea for many people who don’t have the large amount of cash needed to buy a regular home, and for those who aren’t afraid of getting into the “do it yourself” mode. When you consider all of the things you can do to make a home your own, and increasing its value along the way, buying a HUD home can be well worth the effort.
For more information about buying HUD properties, contact your local HUD certified real estate broker today.