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Buying a Denver HUD home is a great way to purchase an affordable home or invest in real estate in the Denver metro area. But before you jump right into your search, there are some things you should know about the rules and procedures involved in buying a HUD-owned home.
Denver HUD Home Listings
All Denver HUD homes are listed on the Denver Metrolist Multiple Listing Service (MLS) at their "as-is fair market value," which is determined by a Federal Housing Administration (FHA) appraiser. If a HUD home does not receive acceptable offers after a certain period of time, its price may be reduced or made available through special sales programs. Prospective buyers can only view HUD-owned homes in the company of a HUD-registered broker or agent.
Submitting Your Bid
Anyone who can qualify for a mortgage equal to or greater than the fair market value or pay with cash can bid on a Denver HUD home through a HUD-registered broker or real estate agent. HUD-registered agents will submit your bid to HUD, and the bid with the highest net to HUD receives a provisional bid acceptance subject to receipt of all required documents.
Interested in purchasing a HUD home in Denver?
Let Kenna Real Estate Group guide you through the process. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Required Documentation
For a bid to be accepted, HUD requires that prospective buyers provide either a pre-qualification letter from a lender or proof of adequate cash funds (greater than or equal to the price of the home).
"Earnest Money"
HUD also requires "earnest money" relative to the home's value–$500 for homes under $50,000 and $1,000 for homes over $50,000. The earnest money is due following HUD's provisional acceptance of the bid. HUD does not accept personal checks, so the earnest money must be provided in the form of certified funds.
Now that you know what's involved in finding and bidding on a Denver HUD home, look at the superb properties available. Feel free to contact us with any questions or schedule an appointment to see one in the Denver area.
