Kent County, DE · Member since 2014 · 147 posts · 22 votes
How reliable is the home inspection report (or PCR) found on the HUD website? Should I get my own property inspector to take a look at the home or should I trust it? Also, can someone briefly explain the Escrow Description section of the Property Condition Summary? The specific summary I am looking at lists a few items including the following:
Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
10y
You can request the HUD property report from your agent I just closed on a HUD home and the report is quite detailed over 33 pages with excellent pictures ,. @Charlie Fitzgerald is correct in that the report is only used for VA and FHA appraisals . The best advice as always is to do your own due diligence with your home inspector
Investor · Richmond, VA · Member since 2015 · 139 posts · 43 votes
10y
I've found the HUD inspections to be very limited, and sometime even incorrect. I would definitely recommend getting getting someone on your side to do a full inspection before commuting to buy a HUD property.
Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
10y
Those ite4ms are items that need to be completed prior to the home being eligible for an FHA or VA loan. They are not significant enough to require an escrow hold back to cure, so they are not requiring that one be set up.
Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
10y
You can request the HUD property report from your agent I just closed on a HUD home and the report is quite detailed over 33 pages with excellent pictures ,. @Charlie Fitzgerald is correct in that the report is only used for VA and FHA appraisals . The best advice as always is to do your own due diligence with your home inspector
Inspector and Investor · Cary, NC · Member since 2015 · 57 posts · 12 votes
10y
I'd be happy to take a look at the HUD report for some sort of nominal fee, but it might make more sense to find an inspector in your area who is certified through InterNACHI. Check out inspectorseek.com
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
10y
@Account Closed
I am assuming you received the HUD appraisal ? How did you get a hold of that as HUD stopped providing those approx 2 years ago ? The report does contain some valuable information that saves me a lot of time digging up
The information on the PCR report may or may not be accurate and should not be relied on. The estimates given for the repairs are just a guess. For example: they may list a water leak as $1000 repair when it may be a $7 shut off
Inspections on HUD homes are costlier and it some cases not possible in some cases do to the inability to turn on utilities. Some of the obstacles are:
Costs- You may be required to pay a de-winterizing fee and a re-winterizing fee to the Field Service Manager. You will be required to pay all utility connection costs
Access- In many areas the window is only 15 days to do an inspection and the utilities can only be on for 48-72 hours.
Repairs- You cannot modify the property in any way so with some utilities requiring inspections before service can be initiated, any required repairs cannot be done
You can have an inspector do a visual inspection and have a plumber do a pressure test which can identify some issues
Kent County, DE · Member since 2014 · 147 posts · 22 votes
10y
Thanks @Account Closed for the information. I will proceed with a separate inspection. It is good to know I can request a full copy of the inspection as mentioned by Steven. Thanks again for take explaining this to me.
Kent County, DE · Member since 2014 · 147 posts · 22 votes
10y
@Britt Treece I am on inspector geek right now. Thanks for the tip. @Greg H. thanks for the info. I will protect myself by getting my own inspections. I will be calling an inspector today. Thanks.
@Greg H. My agent got it from the listing agent if you send me your email i can send it to you
Good for you to get a hold of one ! Anyone who has bought a lot of HUD homes in the past knows how valuable the info can be
I cannot tag him but Mark Ferguson, as a HUD broker do you have access to the HUD appraisal anymore ?
I do not. They stopped giving us those a while back. Some asset management companies may make it ablvailable to listing agents but the ones I work with do not