sales allowance (agents, price, property, inspection)

[bgmv90]

I was reading a listing for a HUD property and it had this....
"sales allowance paid to the buyer at closing for owner occupant purchasers that are full price offers"
can anyone explain what this means? And as far as buying a HUD property, are there a lot more "rules" or "paperwork" involved than if you were buying just a regular property? I know that there could be a number of reasons for it becoming a HUD house, but are most in really bad shape? Also, can you get a good inspection with this type of house? Are they sometimes a HUD house because the owner didn't make payments? Or is it always a run down beat up house? Or hidden problems with electric or something? The reason I ask is because I saw a house that is the right type, but it just happens to be a HUD house. So I'm not sure if I should rule it out because of that. Any thoughts? Or experiences? Thanks.

[chet everett]

Google is your friend --- About Buying HUD Homes

Yes, many HUD homes are trashed. No, HUD will not fix the problems however if you want o pay for inspection you should and HUD encourages this.

Hidden problems? No more so than any other lender owned property.

Rule it out? Not if the price is good and the results of the inspection suggest the total package makes sense...

[Lacerta]

Yes, you buy HUD homes as-is, and you have the inspection to tell you what "as-is" IS.

Yes, there is more paperwork associated with purchasing a HUD home, as there is usually a lengthy HUD addendum.

One thing to know is that in order to make an offer on a HUD home, you have to go through a HUD registered agent. In my area, only about 1/100 agents are registered to place offers with HUD.

I'm not sure what the "closing allowance" might be unless they are saying they will pay some of the buyer's closing costs on a full price offer. That's my best guess. Sort of odd not to say how much though. The way it is worded, they could pay $5 of your closing costs for you and have done what they said they would.