Buying a HUD home is a lot different than the traditional method of making an offer on a home
and getting an answer back the next day. HUD homes are sold by submitting online bids and our
team will assist you with each step. 1. The first step is to get you qualified as a bidder. o You must have a letter of loan qualification from your lender. o Select a mortgage professional who knows the special programs available to purchase
HUD homes. You must be well informed in all areas to avoid unwanted surprises! o You need earnest money. § For homes UNDER $50,000, the earnest money is $500. § For homes OVER $50,000, the earnest money is $1,000. o These must be in the form of a cashier's check or money order, made payable to your
broker's escrow account. o There may be more requirements for certain areas - your Choice One Realty agent will let you
know what they are. 2. Determining what to bid. o This is where all the training and experience of our agents is invaluable! o You want to win the home but not bid too much or too little. HUD sets minimum acceptable
net bids, so bidding too little can make your bid unacceptable. This amount varies, and is not
published - yet another reason to have an experienced agent! o We train our agents to evaluate the home in many different ways to assist you in creating your bid. o What is the home worth in average condition? o What will it take to put the home back in average condition? o What have similar HUD homes sold for in the past? o You will be prepared to make a very competent bid! o A winning bid is the highest net bid, or the bid that pays HUD the most. For example, if you ask
HUD to pay your closing costs that reduces the net. o Many aspects go into the net bid amount. You need an agent that will be able to balance your
needs to put together the best bid on your HUD home. At Choice One Realty we're on your side
to explain how to make your bid a winner! 3. Your HUD registered broker places the bid on your behalf. 4. Every home has a Bid Closing Date. Your agent will know within 24 hours of that date whether or not
your bid won! o HUD does have minimum bid requirements on each home. If no bids meet their criteria during
the initial bidding phase, bids will be opened to non-owner occupied bids, and other levels.
Please ask your agent if you want to submit a new bid. 5. If you are the one with the winning bid, your agent will have all the details you need regarding closing
on your new home. Most of the details are standard, and can be discussed in one of your early conversations. Our goal is to make the process of buying a HUD home an easy experience. Working with our agents will put you
in the driver's seat for winning a HUD home bid!  |