Apr 19 2009
About HUD Homes - Agents Earn up to 5% Commission
Buying a HUD home in Nevada is definitely another investment and primary residence alternative. The active property list as of 4-10-09 had 59 available properties including manufactured homes, condos and single family residences. There have been few HUD homes available in recent years due to the high percentage of conventional loans. With the trend in financing switching back to FHA loans (31% of all Las Vegas closings in March 2009 were FHA), expect to see the number of HUD homes available to increase. Real Estate agents can earn a commission up to 5% of the offer price.
What is a HUD Home?
Access to the Property
Perspective purchasers MUST be accompanied by a broker or agent when viewing any HUD home listed for sale. Buyers may not enter a house without their broker/agent for any reason prior to closing. Brokers and/or agents must accompany any individual performing services such as home inspections, appraisals, or certifications. Keys are not permitted to be lent to any other individuals associated with any sales transactions.
Who can Purchase a HUD Home?
Any individual who can qualify for a mortgage or who can pay cash may purchase a HUD home. Purchasers must use a broker or agent who is registered with HUD to place a bid on a property. Purchasers must also have a pre-qualification letter from a lender or proof of cash funds in the amount of or greater than the property they are purchasing.
All HUD Homes are listed on our website at their “AS-IS” fair market value. Purchasers must obtain the services of a HUD Registered Real Estate Agent. Agents may submit bids on HUD properties on behalf of their buyers. The bid that meets the acceptable threshold and has the highest net to HUD receives a provisional bid acceptance subject to receipt of all required documents. Once a bid is accepted an original Sales Contract Package must be submitted to MCB with 48 hours.
How is Fair Market Value determined?
Fair Market Value is determined by a licensed FHA appraiser. Copies of the FHA appraisal are available to the lender by request after a property is under contract. If a property is exposed to the market without any acceptable offers then a reduction of the listed price may occur.
Does HUD make any repairs to the property?
No. All HUD properties are sold in their “AS-IS” condition. There are no representations or warranties, expressed or implied, on any HUD property. HUD does not guarantee the condition of any property, FHA-insurable or not, nor whether it meets local codes or zoning requirements. Purchasers are advised that there may be code and/or zoning violations on these properties and that it is the responsibility of the purchaser to identify these violations. Buyers are very strongly encouraged to have homes inspected by a qualified home inspection company to satisfy themselves as to the condition of the property at the time of sale.
