Do you realize that there are hidden costs when you buy foreclosed or HUD homes?

I am not talking about out-of-pocket items, such as loan application fees or even the cost of your home inspection. These are fees most buyers are aware of. You already know that you will have to spend some money before the closing that can not be covered by closing costs (most of which are paid by HUD in the form of a closing cost contribution).

The costs I am talking about have to do with utility activation and other services performed by HUD’s field service managers.

Since 3 new field service managers took over in fall of 2010, rules for turning on utilities have changed and so have their fees.

When you look at a property on the HUDHomeStore.com, you can easily find out which field service manager is responsible for a property. Go to the Agent Info tab of a specific property. The field service manager is listed on the right hand side, with all their contact information and email.

Here are the websites of the 3 field service managers responsible for Columbus HUD Homes:

• A2Z Field Services (614) 495-5970
• Innotion Enterprises (703) 351-8151
• Cityside Management

Dependent on the firm in charge of your property, the rules and fees for turning on utilities are different. Fees can range from $100 to more than $200. Some field service managers charge a fee just to authorize you to turn on the utilities, while others provide the plumber  to turn the water on and off, and charge a hefty fee for it.

As a buyer you should not have to deal directly with these firms. This is the job of a good Columbus real estate agent. Your agent receives all required forms and information with the ratified contract. That’s the time to immediately plan if and when you need to get the utilities turned on.

Whenever you schedule a utility activation, make sure you have your “ducks in a row.”

• Your appraiser and inspector should both come during the time when the utilities are turned on, otherwise you need another authorization and pay an extra fee.
• Line up the utility companies, so they will have enough time to schedule the activation of gas, water or electric, while you have permission.
• Have your own contractors ready (if required) to inspect the plumbing, do the pressure test and turn the furnace on.

Utility activation is a hassle with HUD homes and most other foreclosed properties. An experienced real estate agent who has a team of inspectors and contractors will make your life much easier and save you repeat activation fees.

You are probably wondering why a beautiful house like this one is back on the market?

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 buy 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.

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

An experienced Columbus real estate agent who specializes in HUD homes will try to prepare you for these uncertainties before you submit an offer. Most important, your realtor should take as much pressure off your shoulders as possible and manage the HUD house purchase from bid to closing.

After all, you can get a really good deal on Columbus HUD homes. Like the house above, which just came back on the market due to some of these unexpected problems.

You can have this almost new HUD house for only $145K. The original home owner purchased it for $212K, which means you pay 32% less!

Did you ever wonder why some HUD homes don’t sell?

It’s a combination of 3 factors which determine, if a house is a good deal that will be snapped off the MLS as soon as it gets listed, or if it sits forever without even a single showing. The 3 factors that have a negative impact on a HUD listing are:

1. Listing price too high for the type of home (foreclosure or bank-owned)
2. Located in the Columbus school district
3. Needs repairs or has outdated interior

   

Here’s a Columbus HUD home that meets all of these negative criteria. No wonder it has been on the market for more than a month without any offers.

Unfortunately, the asset managers did not reduce its list price, yet. This house is available to investors. But at its current list price of $116K it’s just too expensive for an investor to make any money.

Say you would like to buy this house. What’s your best strategy?

Submit offers! Without an offer you can’t get the house. Start with a low offer, one you feel is reasonable considering the location and condition of the property. The worst thing that can happen is that HUD doesn’t accept your bid. No money lost!

Second best? You may get a counter offer. Sometimes the asset managers decide to counter and you have an opportunity to accept that counter offer.

You don’t have to take it, if it’s still too high. Just continue submitting your preferred price every day. As all offers are submitted online, it only takes a few minutes, and your realtor will gladly do it for you.

Sooner or later the HUD asset manager will settle near your price point!

I know for a fact that this strategy has worked for many years, and it still works with today’s new managers. There’s just one disclaimer to make – this approach may fail, if there’s competition.

When you join me on a house hunting trip you better leave your flip flops and heels at home!

You probably saw the popular TV show “What Not To Wear” on TLC. Although I like Stacy and Clinton’s transformations and style advice, house hunting (especially in Winter) is not the time when you want to dress up. Just the opposite – wear comfortable clothes you can move around in easily and that keep you warm.

As I write this post in the middle of January, I strongly recommend you dress for winter and snow!

Here’s why:

1. Utilities have been turned off in HUD homes and most bank owned properties. These houses are VERY cold inside. If we look at a few of them in a row, there’s no place to warm up, but your car.
2. Snow and Ice are not cleared off the driveway. You may have to wade through a foot of snow just to get to the entrance. The floors are often wet and slippery.

If you are cold, you won’t enjoy your house hunting trip. Believe me, I have been miserable on many a cold winter day inspecting HUD homes.

So, dress for the winter season, bring winter boots, gloves and a hat, because HUD house hunting is not a fashion show.

Call me at (614) 975-9650 to schedule your Winter House Hunting Adventure.

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Something is bothering me today, and I would like to find out what you think!

Here’s what it is.  HUD has asked their listing brokers to market properties as “regular listings”, not as HUD homes. I presume they believe this will lead to more showings and higher offers.

• Do you think that’s a good idea?
• Are they trying to hide something a buyer should know before they look at a home?
• Does it make any difference for you as home buyer?

Click here to give me your opinion!  Please answer these 5 short questions. It will take approximately one minute. I really appreciate your honest feedback on this topic!

Here are the Results of the HUD Homes Opinion Poll!

The total number of HUD homes in Columbus is steady above 400. Here are the stats and 5 of my newest HUD listings!

HUD Homes Listing Statistics

HUD Homes Previews

4015 Shannon Green Dr, Canal Winchester, OH
2BR 2.5BA 1,342 sqft Listed for $67,000

5153 Mapleridge Dr, Columbus, OH
3BR 1.0BA 988 sqft Listed for $35,000

1903 Rosemont Avenue, Columbus, OH
2BR 1.0BA 1,004 sqft Listed for $26,244

1389 E. 21st Ave., Columbus, OH
2BR 2.0BA 816 sqft Listed for $11,000

3154 E. 13th Ave. COLUMBUS, OH
2BR 1.0BA 762 sqft Listed for $5,000

Call me at (614) 975-9650 to see the inside of any HUD house!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

The number of HUD homes in Columbus is still increasing. Below are 5 of our newest HUD listings. Three of them are newer houses in the suburbs, one is located in Lancaster and the last one is a low cost rental house in Linden.

As a bonus I added a vacant lot.

That’s right – HUD owns vacant lots. The home that used to sit on this lot was completely destroyed in a fire and ultimately torn down. This is a great opportunity for builders – the subdivision was originally developed in 1997.

HUD Homes Listing Statistics

Franklin County: 322
Delaware County: 14
Licking County: 29
Fairfield County: 22
Pickaway County: 17
Madison County: 12
Union County: 4

TOTAL Number of Central Ohio HUD Listings: 420

HUD Homes Previews

7930 Brianna Dr., Blacklick, OH
4BR 2.5BA 1,917 sqft Listed for $129,900

51 Grisby Lane, Pickerington, OH
4BR 2.5BA 2,548 sqft Listed for $140,000

2852 Medora Dr., Grove City, OH
3BR 1.5BA 1,654 sqft Listed for $68,000

2810 Lancaster Thornville Rd, Lancaster, OH
3BR 2.0BA 1,320 sqft Listed for $73,695

1433 E. 21st Ave., Columbus, OH
2BR 1.0BA 824 sqft Listed for $17,000

BONUS HUD LISTING – Vacant Lot in newer subdivision

5022 Easy Court, Columbus, OH
Vacant lot, Listed for $20,000

Call me at (614) 975-9650 to see the inside of any HUD house!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Let’s ring in the new year with 402 HUD Listings!

Never before did we see such a huge selection of HUD homes in Columbus. And you should take advantage of it. With the economy growing again and interest rates going up (for the past 5 consecutive months) it’s time to make up your mind and submit an offer.

Here are the specifics for the 7 Central Ohio Counties:

HUD Homes Listing Statistics

Franklin County: 310
Delaware County: 12
Licking County: 24
Fairfield County: 20
Pickaway County: 20
Madison County: 12
Union County: 4

TOTAL Number of Central Ohio HUD Listings: 402

Enjoy the previews of 5 of my listings!

118 W. Cochocton St, Johnstown, OH
3BR 1.0BA 1,392 sqft Listed for $80,000

3423 Hail Ridge Dr, Reynoldsburg, OH
3BR 2.5BA 1,483 sqft Listed for $113,000

2133 Jade St, Grove City, OH
3BR 1.5BA 1,234 sqft Listed for $58,000

3338 Omega Dr, Columbus, OH
4BR 2.5BA 2,351 sqft Listed for $145,000

3641 Hollowwood Ave, Columbus, OH
4BR 1.5BA 1,456 sqft Listed for $64,000

Call me at (614) 975-9650 to see the inside of any HUD house!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Let me start with a heart felt Thank You to all of my readers and Holiday Greetings. I am really glad that you are interested in HUD houses and I hope my articles are helpful for you.

The past 2 months were CRAZY. We received so many new HUD listing assignments that we were scrambling over most of December to get them up on the MLS. You will find 410 HUD houses for sale in Central Ohio.

To see all of my HUD Home Listings with 18 pictures, videos and comment, click here!

Let’s take a closer look at 6 of our listings.

2879 Liberty Bell Lane, Reynoldsburg, OH
3BR 2.0BA 1,587 sqft  Listed for $78,003

218 Sonoma Dr, Delaware, OH
3BR 2.5BA 1,512 sqft  Listed for $116,000

1048 Wildwood Avenue, Columbus, OH
3BR 1.0BA 1,410 sqft  Listed for $22,000

204 Richards Street, Danville, OH
2BR 2.0BA 1,120 sqft  Listed for $52,000

5270 Arrowood Loop E., Columbus, OH
4BR 2.5BA 2,100 sqft  Listed for $116,000

101 N. Westmoor Ave., Columbus, OH
3BR 2.0BA 1,322 sqft  Listed for $25,000

Call me at (614) 975-9650 to check out some HUD Homes!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

It’s the week before Christmas and all through the town …
you can find new HUD homes in Columbus listed for sale. More than 100 new Columbus houses were added in the last 7 days.

To help you locate all of these homes I created a HUD Homes Map. If you have been a subscriber for a while you will notice some differences from previous maps.

If you are not a subscriber, it’s time you join our mailing list. Not only will you get the free HUD Home Buyers Guide for 2010, but you will also receive regular updates on HUD homes in Columbus, as well as exclusive previews and, of course, HUD homes maps.

It’s easy to join!

Enter your email in the orange box to the right to download the Buyers Guide. You can also go to the end of the post and click on the Buyers Guide icon!

The colors of markers on the map represent the listing period and who can bid on a HUD home. Homes available for Owner Occupants are red, All bidders and Investors are green and the homes in the Lottery for Government Agencies and Non-Profits are Yellow.

With so many HUD houses flooding the market we found exceptional, enchanting and absurd deals.

Exceptional The HUD duplex on Elsmere is certainly the deal of the year. This is a must see for serious buyers.

Enchanting The Reynoldsburg winter wonderland light show will get you in the holiday spirit in a heartbeat. Drive through after dark and enjoy the lights and Christmas music.

Absurd That’s what I call a HUD home listed for $675,000 in Reynoldsburg. Check it out…

Listing Statistics

Franklin County: 271
Delaware County: 11
Licking County: 22
Fairfield County: 18
Pickaway County: 17
Madison County: 9
Union County: 3
TOTAL Number of Central Ohio HUD Listings: 351

Call me today at (614) 975-9650 to submit an offer!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

It may be hard to believe, but there’s a HUD house hidden among the animated Christmas lights along this Reynoldsburg Street.

Watch this video to get a sense of the Holiday Wonderland:

This is probably one of the most inviting neighborhoods in Columbus. And it’s all for a good cause. If you go to check it out, please bring a few canned food items. They are collecting for the Mid Ohio Foodbank.

You can find directions at Picktownlights.com

The house itself is not that old, however, it needs plumbing repairs.

3423 Hail Ridge Dr., Reynoldsburg, OH
3BR, 2.5BA, 1,483 sqft, Listed for $113,000

It gets even better. Below you will find the deal of the year!

Trust me!

You can get this German Village Duplex for $76K. It is newly renovated and has never been lived in.

Why does HUD allow this deal?

Actually, these are 2 HUD condos with a single case number. The previous owner bought it as a double and split it into condos. Now you can buy one of the condos as an owner occupant with FHA financing for $76K and you will get the other one for free.

Take a look at the pictures and call me immediately at (614) 975-9650.!

506 Elsmere St., Columbus, OH
2BR, 1.5BA, 1,109 sqft per unit, Listed for only $76,000
The second unit will be transferred to you on the same deed for free!

Definitely call today: (614) 975-9650.

This is probably the best HUD home I ever listed!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650