HUD House For Sale | Property Conditon Report

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Property Condition Report (PCR) for a HUD House for Sale was similar to a home inspection but that has changed. It is now a one-page summary of the condition of the home. So, it is more important then ever to get a home inspection.

It is extremely important to understand that HUD house for sale is sold in "AS-IS" condition. This means that the condition of the HUD foreclosure listings are what you see is what you are buying.

HUD makes no warranties and they encourage you to have a Home Inspection done on HUD homes for sale. The Property Condition Report PCR) that they provide does not go into details about what is wrong with the property.

HUD House For Sale | What Is A Property Condition Report? 

Here is what the M&M Contractor says they are and what they provide.

"The Marketing and Management (M&M) contractor will prepare a property condition report for each HUD house for sale. Prior to completing a property appraisal the M&M contractor will prepare and provide to the appraiser a property condition report that provides potential purchasers with any information known to the contractor that may affect the habitability, functionality or HUD homes for sale, including but not limited to: the functionality of all heating, cooling, plumbing, gas and electrical systems and appliances; outstanding code violations, pending litigation, demolition orders, other legal actions that may impact the property or violations of Homeowner's Association covenants that are known to the M&M contractor and that will not be resolved prior to closing; condition of the septic system or well; existing transferable warranties; copies of Homeowner's Association documents; the Environmental Compliance Record, the lead based paint disclosure, and the mold disclosure. The completed Property Condition Report will be posted in the property file on EMS and will be made available to prospective purchasers through the Internet Property Listing."

Below is an example of a Property Condition Report for a HUD Home for sale in Nebraska.  As you can see it does not give you a lot of information, just the basic details of the condition of the property.

The Property Condition Reports for the HUD homes for sale are similar to a Home Inspection Report in that they do check the heating system, A/C, plumbing, and electrical.

The Property Condition Report for a HUD house for sale SHOULD NOT take the place of a Home Inspection Report. Spend the $250-$400 for the Home Inspection Report, it is worth it!

One of the major concerns of HUD homes for sale in cold weather states are frozen(busted) water pipes. Here in Indiana, the HUD homes that I have personally brought, about 50% of them had busted water pipes. HUD don't do a very good job of winterizing the pipes or they may winterize them too late in the winter season.

The Property Condition Report is supposed to be available to you online at HUDhomestore.com. It does give you an idea of the major defects of a HUD house for sale.

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