There are 3 main reasons why HUD homes fall out of contract:

• 1. The buyer can’t get financing

  2. The property inspection uncovers hidden defects

  3. The buyer gets frustrated

Do not underestimate the challenges that await you when you sell a HUD house.

It’s a hassle to turn on the utilities, you don’t know what to expect from the property inspection, the lender questions the condition of the house, the A/C unit gets stolen a week before the closing, and the seller (HUD) won’t make any repairs.

Buyers you will get frustrated and maybe lose motivation to close on the purchase. There are just too many things to put up with.

Prepare your client for these uncertainties before you submit an offer. Most important, you as a realtor should take as much pressure off your clients shoulders as possible and manage the HUD house purchase from bid to closing.

After all, your client will get a really good deal.