So you’re thinking about buying a HUD home? If you have cash or qualify for an FHA loan, anyone can purchase a HUD home. To start your road to ownership, you should first find a real estate agent has experience with Florida HUD homes. They will walk you through the process and how to submit an appealing bid.

HUD offers homes for sale in Florida and nationwide, within an "Offer Period" and when that period has expired all offers are opened and reviewed.  If the house is not sold during the initial ‘Offer Period’ bids may still be submitted until one is accepted. Bids may be submitted on holidays and weekends however the offer won’t be opened or reviewed until the next business.

Typically the highest bid is accepted, but there are other factors that may make a bid accepted. Such as cash bids win over bids that require financing. Within 48 hours of submitting your bid, your real estate agent will be notified if your bid was accepted by FHA/HUD. Your agent will also be given the deadline, a date to settle this transaction. That time frame is usually within 30 to 60 days of the bid being accepted. During this time if you are paying cash, you will need to get that in order or if you are financing this purchase, you need arrange that financing as well as arrange the closing.

You need to keep in mind that HUD homes are sold ‘as-is’, there is no warranty implied or offered.  Any repairs will not be paid for by HUD. Any repairs or fixing up is at the buyer’s expense. The buyer of a HUD home can expect the need to invest money in improvements and repairs. It is highly recommended to have the home professionally inspected before you make an offer. An inspection will give you some idea of what repairs are needed before you submit your bid. When preparing your bid, you need to include in your financial plans the cost of any repairs or possible upgrades you may want.

While HUD sometimes will offer special incentives such as an allowance to upgrade the property or perhaps an allowance for moving expenses, it is usually be in exchange for a quick closing. A buyer can also request HUD to pay fees such as closing cost, realtor fees and finance fees.  This is why you select a Florida real estate agent that is experienced in HUD homes and they will know what to ask for and how to ask.

You want an experienced Florida HUD realtor that understands your list of needs and wants for your home as well as your financial situation. A realtor that handles HUD homes will handle all the bidding and closing, walk you through the whole process including all the paper work and will make this a pleasant experience for you.