A small introduction to HUD home
HUD homes are nothing but the foreclosure homes sold by US Department of Housing and Urban Development. Can we buy it easily? It’s little bit complicated procedure when compared to buying normal houses.
Federal Housing Administration or FHA is an alliance of HUD and they provide federal mortgage insurance to the buyers. If the home is in foreclosure process, then FHA will transfer the ownership to HUD and they will take the authority to sell the home.
Myths about HUD homes
Buyers often think that HUD homes are sold at high discount price. Not true always! You have to do a proper research on the price tag of the HUD home. Generally, HUD homes for sale in Houston can be of market value price. If the house is too old and need lot of repairs then the price will be slightly deducted but you cannot expect a great offer.
HUD homes for sale in Houston |Do thorough analysis on the property
Before purchasing the HUD property analyze whether it is sold for market value or less than that. There is no use of buying the HUD homes if they are sold at above market value price. How to know whether you are buying the HUD homes at right price? Find the comparable homes in the neighborhood and know their value. These comps houses prices should be higher than the price of your HUD home for sale.
One more important thing to note is if the home is too old and if it needs expensive fix ups then you can negotiate to buy it in lower price. The price will be adjusted according to expenses for repairs and renovations. Again make sure that you are not paying high price for the house and along with that got costly repairs to do also.
Can I search a HUD home by myself or hire a realtor?
Unlike searching normal homes, HUDs are easier to buy since you can find a list of available homes easily in the respective state websites. Browse for the respective state’s website and search for your ideal property. HUD will also have some approved real estate brokers in charge for selling process. Search for such broker and contact their offices too. Once you find one, do not hurry for the process as you may end up with the bad one. Ask the brokers what was his past works and his clients and then proceed further.
Inspect the HUD homes thoroughly
Like any other real estate properties and homes, you can inspect HUD homes for sale in Houston too. Before bidding the offer, walk through the homes and make sure it is structurally good enough. Plan the budget for repairs and renovations to be spent and do not exceed its limit. If you are planning to buy the HUD homes as an investment, then search for a good location to buy it. The appreciation value should be continuously rising so that you will get higher profit.
There are many risk factors involved in buying HUD homes and even the procedures are little bit complicated. But you can find some properties which are much lesser than the market value and grab on that opportunity to get more profit in your real estate investment.
Log onto Wholesaledealslist.com to find such properties for lesser price compared to market value price!