HUD homes are sold as-is, so the   condition report is crucial when making an offer.

Don't get stuck, buyer beware.

When buying a HUD home, it is extremely important to understand that these homes are sold in an "as-is" condition. In layman’s terms, what you see is what you get. HUD makes no warranties on their homes and they encourage you to have a qualified home inspector review you the home you are purchasing. In many cases they will provide a property condition report for each HUD house that is for sale.

In general the property condition report would include any information that the selling contractor has knowledge of that could affect the habitability or functionality of the home for sale. The information covered would include heating, cooling, plumbing, gas, electric and appliances; title issues such as code violations, demolition orders, or other legal actions, violations of any homeowner's association, well and septic among many other considerations. It may include copies of the HOA documents and any lead based paint or mold disclosures. In many ways, the property condition reports are very similar to a home inspection.

While the property condition report resembles a home inspection report, do not forego having the home inspected by a competent licensed home inspector working on your behalf. Review the report from HUD and have you inspector confirm their findings as well as examine any areas that they may have overlooked.

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