Property Condition Report (PCR)

The Property Condition Report (PCR) is provided for each property as an indication of a property's overall condition. The Field Service Manager (FSM) performs this inspection and provides this report in the addendum section for each property. Below is a sample PCR.

Should there be any indication of plumbing issues the FSM will not allow the property to be dewinterized.

Inspections and Repairs: HUD homes are sold as is, without warranty “AS-IS”. That means HUD generally will not make repairs except to preserve and protect the property or to eliminate a major safety issue. There are financing options such as the 203k loan program to assist home owners in financing such repairs. It is encouraged that all buyers get an inspection after the offer is accepted. Buyer's have 15 days to do all inspections after winning the bid. Utilities, dewinterization and winterization are all the responsibilty of the buyer including all associated expenses. Buyers' can be released from the Sales Contract based on the Home Inspection only upon presentation of the inspection to HUD with validation that repairs were greater than the (PCR) Property Condition Report indicated (found on hudhomestore.com). Deposits will be refunded with proper proof.

Evaluating HUD Properties with the Condition Report

Whenever a HUD property is listed online, it is accompanied by a condition report. These PDF documents should be read thoroughly. They detail the results of an evaluation done by HUD inspectors and include information on the condition of:

• • the interior and exterior of the structure

  • the plumbing

  • the roof

  • the electrical and HVAC systems

  • the built-in appliances

The HUD property report will also include a simple picture of the exterior and some basic information such as the home’s square footage. HUD property reports tend to be quite thorough. However, it is important to keep in mind that HUD does not guarantee the information provided. The majority of information about HUD properties is collected from a visual examination; there may be additional problems with the house that cannot be seen.

You can use the HUD property report to get a general overview of the home’s condition and the amount of money that will be required for repairs. When major repairs are required, HUD often lists an estimate on the property’s webpage (look for this on the database listing, not in the condition report).

Evaluating HUD Properties with the Personal Walkthrough

Before bidding on HUD properties, you may visit the homes with your realtor. Bring along a printed copy of the condition report and take a look at the recorded damage. If there is any additional damage, make a note of it. It’s a good idea to carry a camera; photographs can help you better remember the property after returning home.

Make appointments to view the homes in day light hours. Most HUD properties are not connected to utilities, so it’s easy to miss damage in the dark.

Evaluating HUD Properties with the Traditional Inspection

If your bid is accepted, you are entitled to have a professional property inspection done before the close of escrow. Some realtors tell their clients that this is an unnecessary step. However, it may be important to you – especially if you suspect unseen problems with the home.

The HUD condition report does not check for mold or radon gas. If you live in an area where these are a concern, it’s a good idea to have the HUD property tested.

The professional inspector may be able to find problems that were not in the condition report – knowing about these issues ahead of time could save you a lot of money.

The Final Walkthrough

HUD encourages buyers to take a final walkthrough before the close of escrow. This is your last chance to identify any major problems. If there is a new problem with the property (i.e. someone broke in and stole an appliance or the roof now has a leak), you should contact the HUD offices immediately.

By carefully evaluating HUD properties, you can save yourself a lot of time and money. It can be a hassle to go through all the steps. But, knowing that you’ve made a smart choice is always worth it.