Gail DuBois' Blog
Have you heard a lot about HUD homes, but aren’t sure if you should buy one or what the process entails? HUD stands for The Department Of Housing And Urban Development. The FHA (Federal Housing Administration) is a part of HUD. The FHA is where federal mortgage insurance comes from. If a home is foreclosed on and insured by the FHA, the lender has a right to file a claim for the balance due on the mortgage. The FHA will pay this claim, and then transfer the ownership of the property to the HUD who will sell the home.
Will A HUD Home Provide A Price Break?
The answer to this question is not necessarily. A HUD home is appraised just like any other home for sale. The price is based on the fair market value of the home. The prices may be adjusted according to any repairs that need to be made to the home. It’s a good idea to have your realtor look into comparable prices for HUD homes, as these properties aren’t guaranteed to be a deal.
Know that HUD homes are sold as-is. There isn’t much negotiating like that of a typical home purchase. As the new owner, you’ll be responsible for all of the repairs. It’s a good idea to invest in a home inspection before you buy a HUD home for this reason. You’ll have a better understanding of what you’re getting into with this type of home purchase.
How Do You Begin The Search For A HUD Home?
Housing and Urban Development homes are listed by state on the department’s website. This is a good place to start your search. The site also lists brokers who are approved by the HUD. You can then contact local brokers to show you the HUD properties that you’re interested in.
The Process Of Making An Offer
Buying a HUD property can be very different than buying any other type of home in that the offer process is a bit different. These properties are sold through bids. You must hire a licensed real estate agent to assist you in this process, you can’t just put a bid in on your own. You’ll need to be sure that your offer is placed during the designated offer period. Either the highest bid is accepted or the bid that came in first in order will be taken. Generally, the HUD wants to take the offer that will get them the most profit.
Careful With Financing
The HUD does not finance homes. You’ll need to apply for a mortgage just as you would in buying any other home. Before you can even make an offer on a home you must have approved financing. If for some reason you get through the process of having your offer accepted on the home and the financing falls through, there’s a chance that you could lose your earnest money deposit.
If you find lots of great homes are available and cannot decide which residence to buy, there is no need to stress. Rather than submit multiple offers to purchase various houses, you should hone your home search. By doing so, you can discover the right residence, at the right price.
Now, let's take a look at three tips to help you narrow your home search.
1. Define Your Dream Home
Think about the features you want in your dream home. Then, you can make a list of "must-have" home features and search for residences that offer these features.
Furthermore, consider where you want to reside. If you prefer big city living, for example, you may want to focus exclusively on city houses. On the other hand, if you want to reside in a small town, you can search for residences in myriad small towns.
2. Conduct a Preliminary Housing Market Review
Let's face it – searching for a home can be overwhelming, regardless of whether you are a first-time or experienced homebuyer. But if you perform a preliminary housing market review, you can get a good idea about the volume and quality of available residences. Next, you can use this real estate market information to map out your homebuying journey.
Of course, it may be beneficial to attend open house events as well. These events enable you to get an up-close look at assorted residences. They also can help you understand the features you want in your dream house so you can further refine your home search.
3. Consult with a Real Estate Agent
When it comes to navigating the housing market, it helps to have a real estate expert at your side. Thankfully, real estate agents are available in cities and towns nationwide, and these housing market experts are happy to help you acquire a superb residence at an affordable price.
A real estate agent understands what it takes to help you find a quality home that won't force you to break your budget. First, he or she will learn about your homebuying goals and teach you about the real estate market. A real estate agent next will help you analyze the real estate market and explore a broad range of houses. And once you find a house you want to buy, a real estate agent will help you craft a competitive offer to purchase this residence.
Let's not forget about the guidance a real estate agent provides throughout the homebuying journey, either. Purchasing a house is no small feat, and a real estate agent will take the guesswork out of the homebuying cycle. Best of all, a real estate agent can respond to your homebuying concerns and questions at any time.
If you want to discover a home that matches your expectations, it helps to plan ahead for the property buying journey. By taking advantage of the aforementioned tips, you can streamline your house search and find your ideal home faster than ever before.
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Planning to sell your house in the next few weeks or months? If so, you likely will want to declutter to improve your house's appearance and make it easy for potential homebuyers to envision what life might be like if they purchase your residence.
Ultimately, donating items may prove to be exceedingly valuable, particularly for those who want to declutter and move in the near future.
By donating items that you no longer need, you can quickly and easily remove clutter from your residence. Plus, you may be able to secure a tax credit for your charitable contributions.
Before you donate your items, however, you should take a close look at your personal belongings and decide which things to keep and which to give to charity.
Now, let's take a look at three items that you can donate to charity:
If you intend to move from Florida to Alaska – or vice-versa – there may be a wide range of clothing that you can donate before you move.
Ensure that any clothing that you plan to donate is clean. If necessary, wash any dresses, t-shirts and other apparel that you intend to donate.
Also, it is always better to err on the side of caution when you donate clothing. And if you have clothes that are faded or torn, you should dispose of these items.
For those who plan to downsize, donating electronics is ideal. That way, you can get rid of electronics that won't fit into your new home and do a good deed at the same time.
Evaluate your electronics and make sure they work correctly before you donate them. In addition, it often pays to tape any electronics cords, wires and accessories to the items themselves.
Check out a charity's electronics donations policies prior to scheduling a donation pick-up too. By doing so, you can guarantee that a charity can pick up and use your excess electronics.
In many instances, an individual may move into a new address that comes equipped with a new refrigerator, washer, dryer and other appliances. If this happens, you may want to contact local charities to see if they can pick up your current appliances.
Reach out to a local charity to find out whether it can pick up your current appliances – you'll be glad you did. If the answer is "Yes," you may be able to avoid having to move big, heavy appliances on your own.
As the aforementioned list shows, there are lots of great items that you can donate to charity. Conduct an in-depth search of charities in your city or town, and you can work with a local charity that can use your excess items.
Lastly, if you ever have questions about which charities in your area will accept donations, don't hesitate to reach out to these organizations directly. And if you're looking for extra assistance as you declutter your residence and prepare to list your home, it certainly helps to contact an expert real estate agent as well.