Closed on my first Hubzu property
Hi Everyone,
I recently closed on my first Hubzu property and wanted to share my experience. All in all, everything went pretty smooth which was kind of a surprise based on the feedback I found about Hubzu.
The property is a SFR built in 1957, 1900 sq ft 3/2 located in Westchester County NY. The ARV of similar renovated homes in area range from $380k -$410K.
It was listed on the MLS with a sale price of $217K directing you to bid on Hubzu if interested. My agent bid on the property, starting bid was $151K. We hit the reserve around $206K and won the bid at $226K.
After Hubzu's fees (4.5% for this property, plus technology fee, etc) I have a purchase price of roughly $237K.
Payment terms were cash or conventional financing only. I secured a conventional owner occupied loan to purchase.
Hubzu gave a maximum of 35 days to close on the property. I chose to use my own title company for closing.
We signed the contracts, sent my deposit and started the title work. Throughout the process my realtor kept in contact with the document processor from Hubzu. Communication is key, if you back off and lose a few days waiting for documents, that can turn into a week with no activity. With a 35 day closing every day counts.
I needed to show my financing was in order 2 weeks prior to close per my contract, so my focus was passing the appraisal. There were a few issues since utilities were off for a few years, I needed additional permit and inspection to turn on the electrical. The plumbing was certified with a pressure test. I passed the appraisal and was good to go.
My closing was pushed out 2 days due to some title documents from the selling banks side being delayed.
I successfully closed and have already started demo. I am gutting the downstairs, garage, bathrooms and opening up the kitchen. I will need to replace the heating system. Outside will get landscaping, new siding and garage doors.
The plan is to complete the work in the next 2 months, live here for the next 2 years then sell it and repeat.
In my personal experience I got a deal and would def look at hubzu again.