| Purchasing a HUD Home may be easier than many private real estate transactions, there are still some requirements, which must be met--certain forms that must be used, and procedures that must be followed. However, these requirements are clearly stated in advance. I will be there to help you through it all. There are no negotiations between buyer and seller when you buy a HUD Home. There is no haggling about price. Buyers submit a bid through the real estate professional; all bids are reviewed on Friday with the home going to the highest bidder. During certain times, HUD will accept a full priced offer before the Friday deadline. HUD responds promptly to your offer, and if it is accepted, closing on the home will usually occur within 30 to 45 days. Best of all, the help you will receive from me is absolutely free! HUD pays all real estate commissions. Making an offer to buy a HUD Home is often much easier than the process of buying a home on the private market. You will submit your offer through a real estate broker, in the form of a sealed bid using the HUD contract form. The person making the highest acceptable bid is generally awarded that HUD Home. Before submitting a bid, all potential buyers must be pre approved. Offers for HUD Homes can only be made through a licensed real estate broker. This way, HUD requirements are met and buyers get the help they need. Sometimes HUD accepts an offer that is less than the listing price, depending on market conditions and the length of time the property has been on the market. Sometimes buyers make bids higher than the listing price, if they believe the market conditions demand it, or if the home is particularly appealing. You will generally make your offer for a HUD Home during a designated "Offer Period." At the end of the 10-day offer period, all the bids received on the home will be opened at a public event, which you may attend. (Full-price offers are often opened immediately.) If your offer is accepted, your broker will be notified. Earnest money When you make an offer on a home, the seller will usually require an "earnest money" deposit as proof that your offer is serious. If the offer is accepted, your earnest money deposit will become part of your down payment or closing costs. If your offer is rejected, the broker will return your earnest money to you. Earnest money on a HUD home is typically $1,000-$3,000 dollars depending on the price of the home. The costs of buying a home are more than just the price you agree to pay for it. Before you move in, you will have to pay closing costs, which are explained below. With HUD Homes HUD often pays these costs. Closing Costs This term covers various fees your lender charges for providing your loan, and other expenses. Closing costs typically add up to about 3% or 4% of the price of your home, depending on where you purchase it. However, when you buy a HUD Home, HUD often picks up these costs--if they are specifically requested, by dollars amount, in the sealed bid. Just remember that closing costs and sales commissions are deducted from the bid amount in making the decision as to which offer a more competitive bid, pay your own closing costs. This makes HUD's net return greater; making your bid more favorable an increasing the likelihood, that HUD will accept your offer. Commissions When you buy a HUD Home, HUD usually pays the selling agent's commissions. Inspection Before you buy anything, you will want to know exactly what it is you are getting. That is why it is a good idea to get a professional inspection of your home--even before you make the offer. HUD Homes are sold in "as-is" condition. That means you agree, if you buy the home, to accept it in its present condition. HUD does not pay for the correction of defects in existing homes that it sells or on homes purchased with FHA-insured mortgages. The owner of the home will be responsible for needed repairs. Therefore, be sure of the condition of the home before you submit your offer. | 
