Hey HUD!! Most Buyers Expect Power & Water When They Buy a Home!
June 13, 2010 by Kristin LaVanway · Leave a Comment
What the HUD Property Condition Report Does Not Tell You
Let me just start off my saying that I think the folks at MCB do a great job managing these properties that are offered on the market by the Housing and Urban Development Department (HUD). But here is on problem that could be handled better…
One of my clients has a HUD home in escrow. We are setting up utilities to perform a home inspection. Note that HUD does not have the same due diligence policy that our Arizona contract outlines – when they say As-Is, they mean it. It is difficult to get a refund of earnest money from HUD so the inspection is more for informational purposes than anything else. HUD realizes that you need some information about the house under those circumstances so they issue a Property Condition report with each home. The report outlines the results of a cursory inspection performed with a generator and air test of the plumbing.
In the case of this particular home, a leak at the hose bib was noted with an estimated repair cost of $275. What they really meant to say is that there is no way water from the street is ever going to reach the inside of the house with the current plumbing configuration…the water supply has been terminated.
This is the second HUD home in recent months that has had no means of receiving the basic necessities of power and water. Since HUD does not allow repairs during escrow (although I have seen exceptions for owner-occupied homes) you either buy the house without the inspection or cancel and lose the earnest money deposit. Again, HUD seems to work withowner-occupants a little more generously but investors are on their own.
Fortunately, in this case, we came up a work-around that will allow the inspection to proceed but is sure seems to me that power and water should not be optional when it comes to buying a house.
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I am a Realtor in Gilbert, AZ, working with clients throughout the Phoenix Metro area. I am lucky to love what I do and appreciate the difference I can make in people's lives.
In a previous life, I was a rocket scientist - really! - but decided to step away from corporate America to be a Mom to my four boys. Found it hard to do bake sales, so I ran a small independent programming business instead.
Flash forward...I am now a single mom and I face many, many challenges everyday. I am living through the hardships that many are facing in this economy. These experiences have motivated me to help other people in my shoes.
I have teamed up with Dean Ouellette to form the East Valley Team - the best darn team in the Valley. Check out our site at http://www.EastValleyTeam.com. I spend way too much time on YouTube - check ou tmy channel at http://www.youtube.com/klavanway
