Published on Mar 6, 2017
Selling HUD Homes for Agents – BLB Resources
A HUD home is a 1-to-4-unit residential property that goes into mortgage default with a loan insured by the Federal Housing Administration (FHA). When this occurs, the lender takes possession of the property and transfers ownership to HUD, who then tries to sell the property through programs they offer, and contracts an Asset Manager such as BLB Resources to help manage and market their HUD Home inventory.
These homes can be sold by any licensed real estate broker registered with HUD or a selling agent employed by a HUD-registered real estate brokerage. But all brokers and agents who want to bid on a home will need to register on the http:/www.HUDHomestore website and get an NAID – a Name and Address Identification number. With that, you can submit an electronic bid on any of the HUD Homes.
And you can find ALL active HUD Home listings at http://www.HUDHomestore.com or by searching your local MLS.
Now let’s take a closer look at what the HUD Home selling process is really like.
Benefit 1: HUD is actually willing to pay up to 3% of your buyer’s closing costs. However, that amount has to be included and negotiated in the sales contract when you make a bid on behalf of your buyer. Please keep in mind that this benefit is only available to Owner Occupants, so if you’re buyer is an investor, they won’t be eligible for the closing cost credit.
Benefit 2: All HUD Homes are listed with an Owner Occupant Priority bidding period of 15 days – the ‘Exclusive’ type listing I mentioned a few minutes ago. During that time, your buyer isn’t competing against any investors, and that is a huge benefit for first-time home buyers, and a great deal different than most of the other bank owned properties available on the market.
Benefit 3: If your buyer is the winning bidder, and the home is priced at $50,000 or less, you can initiate the sales contract with as little as a $500 Earnest Money Deposit. If the property is priced at more than $50,000, they still only need a $1,000 deposit.
Benefit 4: We typically respond to accepted bids within 24 hours from the bid deadline date. That way your buyer won’t have to wait days or weeks to find out if their bid was awarded.
Benefit 5: All bids are sealed. That means BLB Resources doesn’t have access to the submitted bids until the bid deadline has passed. Then they open them, review, and award bids upon the expiration of the bid deadline. This guarantees that every bidder gets a fair shot submitted during the listing period
Benefit 6: Any licensed Sales Agent or Brokerage with an NAID registration is allowed to advertise all active HUD Home listings without the permission of the HUD Listing Agent. This is a great benefit to you as an agent, because it allows you to be involved in the process by openly marketing HUD Homes and procuring potential purchasers interested in that inventory. However, there are specific HUD Advertising Guidelines that need to be followed. I’ll tell you a bit more about those in a minute.
Benefit 7: This is perhaps one of the best available benefits of selling HUD Homes right now! If you’re a Selling Agent or Broker representing a qualified Owner Occupant purchaser located in the states of Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island or Vermont, there’s an incredible $100 down payment sales incentive that’s available for a limited time only! Please note that the Owner Occupant purchaser must be qualified for FHA financing in order to take advantage of this terrific incentive.
Benefit 8: If your buyer purchases a HUD Home with an FHA 203k rehab loan, you as their Selling Agent will get an extra $500 bonus on top of your regular negotiated commission! What agent out there doesn’t want to add a little more to their sales commission?