Anchorage Real Estate - HUD Properties

Anchorage Real Estate - HUD Properties

The United States Government found a revenue source in the Anchorage real estate market, through HUD.  We represented a buyer that wanted to purchase her first Anchorage condominium. After looking at several we found one and started researching comparable Anchorage real estate condominiums.  We found the HUD property priced fairly and determined from the issues/repairs the cost was worth the risk.

We actually took several attempts at the property since it had been on the market for some time.  After about three offers, decided we would step up our offer a little and finally it was accepted.

Let me give a few details regarding this HUD Anchorage real estate condominium. It was a bottom floor unit, in a two story complex and when you walked in it need some flooring in random areas through the condominium.  This Anchorage real estate property was roughly about 700 square feet and overall was not in bad shape.  There was no bathroom vanity and much of the flooring and bathroom repairs were included in a escrow addendum through HUD.  They had an estimate of about $2000 to correct everything prior to closing.  As most Anchorage buyers, having something new is definitely a positive to purchase their first Anchorage real estate.

Our home inspection was scheduled out for about two weeks, because the buyer felt more comfortable with a specific Anchorage home inspector and he was in high demand.  This gave us a little more time to do some additional investigation with the Anchorage property manager for the condominium complex and the Home Owners Association.  Part of our investigation exposed some serious issues of non-disclosure or maybe just no knowledge of why the floor and bathroom vanity were no longer in this Anchorage condominium.

The Anchorage property management company told us that there had been a sewage backup in the unit up above and had came in through the walls to the unit below.  Since the HUD property had been vacant for some time it took the surrounding unit owners time to have the property management company investigate the odor and water/sewer in the entryway.  They provided us an invoice that specifically stated the problem, in detail using the word sewage several time, and how it was corrected so as not to happen again.

Well for this Anchorage buyer this was over the limit for her gagger.  She being on the healthy side of the scale of life decided the infestation of material in the walls and flooring to places that couldn't be seen with the naked eye was WAY too much for her.  I have been selling Anchorage real estate long enough to determine that each of us has different thresholds for crime, flow of an Anchorage property and finally cleanliness.  It's either in our wheelhouse or it's not and we can't change who we are when it comes to making a big purchase of Anchorage real estate.

It was decided by the buyer she wanted to terminate the agreement before having a home inspection, because the information she was provided was not disclosed and she wouldn't have put her Anchorage MLS purchase and sales agreement together if she would have known this ahead of time.  We sent the termination agreement to HUD for the Anchorage condominium and they requested our home inspection.  We stated as part of our inspection we were provided information from the property management company regarding the health and safety of the unit.  They did not care and stated the only way to get the earnest money back was to perform a Anchorage home inspection for another $275, send them the report and they would determine if the earnest money was refundable.

The buyer chose not to risk her hard earned money for an inspection and forfeited her earnest money.  We expressed to exhausting ends different avenues for refund of the earnest money, but all they wanted was the home inspection. 

In a normal Anchorage real estate transaction the buyer has a great number of outs, but you need to read the contract carefully for the HUD properties.  There are very few outs, and the number of hidden fees can really put your buyer at risk.  After a buyer pays for a home inspection, furnace inspection, appraisal and other fees the up front monetary risk is pretty high.  That's not counting the things you find once you purchase the Anchorage home or condominium.

Don't be another revenue source through HUD.  Make sure you move slowly and do your work prior to submitting a bid for Anchorage real estate through HUD.