Homes owned by the United States Department of Housing and Urban Development (HUD) offer a great value in today's real estate market enabling you to save thousands of dollars on your home purchase.
There are many advantages to purchasing a HUD Home. First, there is no haggling with the seller. HUD's sealed bid system was designed to be a transparent system where the highest bidder wins with all the processes spelled out in black and white. Bids are quickly responded to the next business day after the initial bidding period. Second, HUD will credit the buyer up to 3% of the purchase price to be used toward closing costs. When FHA financing is used, HUD provides a free termite report. Finally, a small earnest deposit of either $1,000 or $2,000 is required for most HUD purchases. With these benefits and more, purchasing a HUD Owned Home is the smart choice for many prospective home buyers.
Successfully purchasing a HUD Home involves a different approach than purchasing a home from a private seller, and there are specific strategies to make the purchase hassle free