Should I Purchase This HUD Home?
Hello, guys There is this HUD property that is around the corner from my parents that was just listed at a price so much lower than I ever expected. Now the previous owner is a distant friend of my mothers so I had my mother give her a call before I called the agent and she says that the only problem was the property was to big for her since the kids moved out so she wanted to move out anyways, She just moved out about 6 weeks ago . But she did say there is some leaking in the basement but when I looked at the listing on the HUD website they list more problems so my question is to those of you who have experience with HUD: How accurate are there reports? & maybe some sort of estimate for the repair cost they have listed if it is accurate here is what their reports says Thanks, in advance.
Note: WATER INFILTRATION This property has evidence of prior water infiltration, which is a condition deemed to increase the likelihood of mold growth. MCB makes no warranty as to the current or future existence of mold in this property and is not liable for the potentially harmful effects thereof. WATER INFILTRATION. PROPERTY HAS FOUNDATION DEFICIENCIES THAT NEED TO BE INVESTIGATED BY A PROFESSIONAL. ROOF NEEDS TO BE REPLACED. PLUMBING & HVAC ARE NOT FUNCTIONAL.
My experience has been that the inspectors who write the condition reports vary widely in both how nit picky they are, and also their estimate of repairs.
Are you planning on living in the house and bidding during the ten day sealed bid, or will you wait and compete as an investor? Whichever, do your due diligence before bidding and plan ahead.
Bear in mind that the listing price often has little relationship between the actual selling price. If it is listed too low, there will be plenty of bids above listing. And vice versa.[ Edited by tbird on Date 04/02/2006 ]
With HUD you may not even get to bid after the initial 10 day period. Usually if theyre a good deal theyll sell during the owner occupant period.
What is your plan for this house? Do you have an exit strategy if you are the winning bidder?