How Are HUD Homes Sold?When a HUD Home becomes available for sale, usually it is advertised in a widely circulated daily newspaper on an open listing basis. This means that any real estate broker who is properly registered with HUD's local office may submit contracts for purchase. Brokers are used because of their expertise in the local residential real estate market and because HUD does not have sufficient staff either to show properties to prospective buyers or to assist in those other aspects of home buying normally handled by brokers. HUD Homes are offered on the sales market at fair market value, based on a recent appraisal. Generally, HUD Homes are sold in what is known as an "Offer Period," during which a potential buyer's offer must be made. At the end of the Offer Period, all offers are opened and the bid providing the highest acceptable net return to HUD may then be accepted. Following the initial "Offer Period" homes remaining unsold are offered on an "extended" basis which means offers may be submitted any business day. If a bid on one of these homes is acceptable, the broker will usually be notified within 48hours of HUD's acceptance of the offer.
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