|
Should You Do A HUD Homes
Inspection?
It is my opinion all HUD homes should have an inspection because all HUD properties are sold "AS-IS" condition. There are no representations or warranties, expressed or implied, on any HUD repo homes. Buyers are also advised to check for zoning laws violations.
HUD very strongly advise Buyers to have HUD homes inspected by a qualified home inspection company to satsify themselves as to the condition of the property at the time of the sale. HUD do make available a "Property Condition Report" for HUD home listings. In the past they did not make available the Property Condition Report (PCR) for every property but recently they have been making it available on all new HUD homes listings. You need to check with your real estate agent to see if HUD supplies a Property Condition Report on properties in your area. A Property Condition Report used to be similar to a home inspection report and it even looked like a home inspection report. But the new version of the PCR is just a one page report that only checks the most important items such as the heating and cooling, plumbing, electrical, and roof. But it is still recommended by HUD to have your own inspection done! You may be able to void the contract if you find major defects that haven't been disclosed or discovered by HUD. But again, they will not do repairs. The buyers of HUD repo homes have 15 days after the ratification date on the Sales Contract to have all inspections made and a respond prepared. The ratification date is the date that a HUD representative signs the Sale Contract. This time period could be up to two weeks or more after your bid has been accepted. A few years ago HUD was encouraging Buyers to have inspections done on the HUD repo homes BEFORE they bid. Of course, this is an example of governmental logical. First, why would you want to spend $300-$400 for inspections and you don't even know if you are going to be the winning bid. Secondly, HUD will not let you turn on the utililties UNTIL you have a Sales Contract signed by HUD. So, you are going to spend $300-$400 for inpsections and you can't inspect the furnace, A/C, plumbing, and electrical. Doesn't make sense to me! No work or repairs are to be done to HUD repo homes prior to the close of the transaction. An accepted bid is not a tranfer of ownership. Buyers may not use government owned homes for storage of personal items or occupy the premises under any circumstances. Occupying or working on HUD repo homes prior to the close will be treated as trespassing. This could results in the cancellation fo the Sale Contract, forfeiture of the earnest money deposit and it also could cost your real estate agent their right to sell HUD homes. If you do a home inspection you will have to notify the M&M contractor on what days you are planning the inspection. You will also have to have the utilities turn on and you are responsible for any damages that may occur during the inspection. If the property has been "winterized" then you will have to re-winterize the property or pay the M&M contractor a fee to do it for you. Again, it is very important to have a home inspection done on HUD homes to lower your risk of incurring major repairs bills in the near future.
Back to Home Page from HUD Homes Inspection
|
