What’s In A Hud Property Condition Report?
Monday, August 17th, 2009 at
3:32 pm
We decided to look around at HUD foreclosed homes before inquiring at HUD about the Good Neighbour program and saw that they are sold without warranties. An agent has told us each listing comes with a Property Condition Report. Is that different from a Home Inspection Report and can we rely on it?
Tagged with: Condition • Property • Report • Whats
Filed under: home inspection
A property inspector,
* checks the roof for leaks(this involves going into the attic)
* checks the foundation for support issues(crawlspace entry)
* determines the septic and well guidelines(if they are applicable)
* energizes the electric with a generator to make sure it works
* if possible, check the a/c and furnace
* look for hazards,such as mold or asbestos
* make note of things like broken doors,windows,etc.
* note paint condition(if there is a lead based issue)
* note any trash in the property.
Then they send out an appraiser who sets value and notes anything else besides what the inspector found.This is how they come up with value. I am a HUD appraiser and I read the home inspection reports on every job. They are very thorough and between the 2 of us, we find most problems. I would try to get the Realtor handling the property to let you in.One look is worth a thousand words.
Well I certainly couldn’t provide a better description than your HUD appraiser respondent. But to summarise, its the initial inspection report which HUD provides to the appraiser and is supposed to be available to you before you bid. It is similiar to a Home Inspection Report which HUD recommends you obtain and pay for yourself, and most HUD realtors will tell you is vital. The Home inspection Report you commission, if it doesn’t always identify something not mentioned in the HUD reports, will give you another opinion on cost. Expect to pay $250 to $400. A minor cost to ensure peace of mind in a major expenditure project.
Here’s a reference to a listing of available HUD homes in Florida, which gives you a great chance to have a good look around at price and condition per the HUD reports before commiting yourself to any particular approach with HUD.
HUD homes can have water damage, black mold, electrical , furnace, plumbing, structural damage
the HUD certified real estate agent you must use so you can put in your bid will tell you whats wrong with the house
even then , its a gamble
Yes, it basically tells a potential buyer what was SEEN as an issue. There could be NOT SEEN things that could be expensive to fix. HUD typically are in pretty bad condtion. If the previous owner wasn’t able to make the mortgage payments, do you really think he took care of maintenance on a home? Not to mention, some trash the place before their evicted. I would use a Realtor knowledgable in HUD homes. As you may know, it is a bidding process. If you spend the money to have an inspection and the lose the bid, you have spent money you can not get back. Might want to consider that before getting in too deep.
There are a lot of properties on the market for sale that may provide what you need in a home. Ones that the owner has taken care of.