Prior to Listing HUD Properties

As soon as the property comes to HUD’s inventory, the property management for HUD orders an initial property condition report. This inspection is not done by a professional inspector and there are no warranties with this report. The property condition report will be provided to an FHA-approved appraiser before they go to the property. Based on the property condition report and the appraiser’s observations about the home, an appraisal is completed for every property prior to listing it for sale. The appraisal report identifies possible deficiencies in the home and determines the price. Appraisers are required to give rough estimates for the repairs which are disclosed on the listing. Estimated costs to cure repairs may fluctuate after the contract process begins and actual repair bids are sought.

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