Who Can Sell HUD Homes?
HUD homes for sale can be purchased only through a qualified real estate broker who is registered with HUD. Buyers must work with agents from a registered brokerage; buyers are NOT able to submit bids on their own behalf. Brokers are listed on HUD’s listing website.
Our team and office are registered with HUD.
HUD Contract Sales Packages
HUDHomeStore.com offers contract downloads with purchase offer contracts containing specific forms for
- Owner/Occupant purchasers
- Investor purchasers
- Good Neighbor Next Door purchasers
Downloadable contracts appear at the Addendums tab at each property detail page.
Contracts are prepared in PDF format. You must fill in complete information about the buyer, property, and financing and print the contract for signature. Note: you cannot save the information on the form and amend it at a later date.
You must print the contract on paper, and you must sign in blue ink. At this time HUD does not accept electronic signatures. Completed contracts for accepted bids cannot be faxed to the Asset Manager.
Owner Occupant Sales Package Checklist
The following is a checklist of items that must be filled in correctly. Failure of the real estate agent to submit a fully correct form may require changes and initials that must be executed. Most Asset Managers include a checklist for agents to use when they are crafting a purchase offer. Use this checklist again when you are preparing to send an accepted bid package to the Asset Manager.
Conditions of Sale
Offer your buyers an opportunity to review the contract before you sit down and sign papers. This page is very important. It details the Conditions of Sale. Cover this document carefully, one paragraph at a time. Read it first and become familiar with the language. This part of the contract has not changed in many years.
Radon Gas and Mold Notice
HUD discloses that it has not performed tests for the presence of two conditions that may pose adverse health effects – radon gas and mold. Radon gas is an invisible and odorless gaseous radioactive element that is said to be the second leading cause of lung cancer in the U.S. Mold is a general term for fungus growth that may or may not be visible.
HUD recommends that buyers hire professionals to test for best conditions and discloses that cost to remedy the problems is the sole responsibility of the buyer.
Lead Based Paint Addenda
There are a series of addenda relative to lead paint. HUD contractors in many areas compile comprehensive reports relative to the presence of lead paint in HUD homes. These reports are made available online prior to the sale, in many cases; in cases where they are not available prior to the sale, HUD directs that copies of the reports be sent to the purchaser after the sales contract is executed.
Buyers have an opportunity to complete independent inspections.
Owner Occupant Addendum
This addendum declares that the purchaser will occupy the property as a primary residence for at least 12 months and that he has not purchased a HUD property as an Owner Occupant in the previous 24 months.
Forfeiture and Extension Policy
HUD spells out its earnest money policy in detail. Monies cannot be returned to the Buyer without a written release from HUD.
The rules are very different for owner-occupant borrowers and investor borrowers. Become familiar with the terms relating to earnest money forfeiture. Buyers must acknowledge and sign a form like this as part of a purchase offer agreement prior to submitting a bid.
For Your Protection: Get A Home Inspection
This disclosure underscores the importance of having a home inspection to evaluate the physical condition of the property as well as the mechanical systems. The document points out that appraisals serve a different purpose than home inspections. Appraisals are performed primarily to estimate the value of a property and to be sure that minimum property standards are met. This form gives the buyer a chance to opt for a home inspection or to waive it as part of the agreement.
Proof of Funds Letter – Investors
In cash transactions, agents and brokers must provide a Proof of Funds letter to verify there are sufficient funds to close, and written verification must be submitted on brokerage letterhead stationery.
A copy of the buyer’s bank statement is not sufficient documentation. Instead, instruct the buyer to get a letter from the bank manager or account manager stating that there are sufficient funds available to close in the amount of the transaction cost (sale price plus closing costs).
All letters must include HUD Case Number, Property Address, Buyers(s) Name(s), and Sale Price.
What About One Of These Homes?
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All statistics are gathered from the Buffalo Niagara Association of REALTORS®.
For more information, call our Myriad Team @ Keller Williams Lancaster at (716) 650-0051
Thinking of selling your Western New York home? Interested in finding out the current market value of your single family home, condo or investment property? Then call us at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home.
Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2016 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.
