If you are a first-time homebuyer ready to realize your homeownership dream, you may want to consider buying an HUD home for the following reasons:
- Priced often below market value, HUD homes make a more affordable choice for homebuyers with on a budget.
- Smaller down payments mean you can use the remaining amount to make repairs to your new property.
- The government gives preference to buyers who intend to live in the home over investors, so you can easily find the home of your dreams at a reasonable price.
While there are many benefits of investing in an HUD home, it is important to know that the process of buying an HUD home differs significantly from a conventional real estate transaction. So, if you are hoping to score a cheap real estate deal by buying an HUD home in Atlanta, here are a few things that you must consider:
- Finding HUD Homes
You can find HUD homes that are available for sale using any one of the following three ways:
- Seeking assistance from a real estate agent in Atlanta
- Looking for ads in local newspapers
- Calling the HUD directly
I personally advise first-time homebuyers to ask a real estate agent to help them with their home search. Get professionals and a high quality home inspection. This way, they can have an expert by their side to assist them with the paperwork, home inspection, bidding, and other complexities associated with buying an HUD home in Atlanta.
- Making an Offer
Unlike a conventional real estate transaction in which a buyer presents an offer directly to the seller, HUD transactions involve a sealed bid auction. All buyers will make a bid and the home will be sold to the buyer with the highest bid.
- Finding a Cheap Deal
During the first 10 days of auction, only owner-occupant buyers can bid. If the home is not sold within the first 10 days, the Department of Housing and Urban Development (HUD) starts accepting bids from investors as well. If the home remains unsold after 45 days, the HUD lowers the listing price or sells the property to the buyer who made the minimum acceptable bid. So, if you are looking for really cheap real estate deals, you may ask your real estate agent to look for HUD homes that have been up for sale for 45 days or more.
- Getting a Mortgage Loan
The Department of HUD does not offer financing to homebuyers. Therefore, you should make an offer only if you have already secured a mortgage loan. This is important because if you remain unable to close the deal after your bid has been accepted, you will end up losing the earnest money you have deposited along with the offer.
If you are willing to buy an HUD home in Atlanta and need an expert real estate agent to assist you throughout the process, you may contact me on my website. To get more tips about home buying and selling, you may also visit my blogs on Luther Ragsdale.com and Platinum Real Estate.