How to Buy a HUD Home, Part 3 – Tips and Examples

Now that you have an understanding of how to negotiate a HUD home and are aware of their inspection practices, I wanted to finish this series with just some tips from my experience that could also help you along the way and maybe save you even more money along the way.

  • List Price Vs As-Is Price – When viewing a HUD home on their website at you will notice that they will show two prices: List Price and As-Is price. The List Price is exactly that – what they are currently asking for the property. However it is the As-Is price that can help you determine when a good deal is near. The As-Is price is the appraisal that HUD received when they acquired the property. When the List price is below the As-Is price, then you know the property has good value potential because it has been on the market for awhile and/or needs work.
  • Appraisal – When financing a HUD home, use that As-Is price to your advantage. By acquiring HUD’s appraisal after having your contract accepted (which they usually give you) you can save yourself $300-$400 from the lender’s appraisal. It may take some convincing of the underwriter to use it, and it usually depends on what date the appraisal was completed on.
  • Closing Costs – You can always ask HUD to pay for closing costs during the bidding process but it is not for specific items. For example, if you wanted $3000 of your costs plus a $250 flood elevation certificate, you would ask for $3,250 and pay for the certificate yourself.

Most importantly, choosing a Realtor experienced in working with HUD properties is paramount. I have navigated many different HUD transactions with unique challenges to each of them. The common component is that every single one of them CLOSED on time. If you’re interested in a HUD home, call me and let’s get started!


David R. Madaffari, Realtor
Keller Williams Realty – First Choice
Office: 225.744.0044
Cell: 225.772.3283 (DAVE)
37325 Market Place Dr. Ste D
Prairieville, LA 70769
Each office independently owned and operated


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