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Being a HUD Local Listing Broker is both a privilege and an honor; it's something that a lot of real estate agents aspire to, but unfortunately, because of limited inventory not everyone can be a HUD LLB. That's the bad news. 

Here's the good news: Even if you are not a HUD Local Listing Broker, if you are a licensed real estate agent you can still use HUD homes in your area to help increase your book of business.

How does that work? Simple; market HUD homes yourself. That's not to say you can claim a HUD listing as your own listing or that LLBs are asking you to do their work for them. It is a proven way to generate leads and sales using active HUD inventory by advertising HUD homes, holding Open Houses at HUD homes or participating in other marketing for HUD homes.

As an example, let's say you have searched HUDhomestore.com and found a HUD listing that you would like to market. An easy, inexpensive way to market a home is to put flyers up on local bulletin boards at the grocery store, the coffee shop, the gym. If a potential buyer sees the flyer and are interested, they will call you for a showing. You meet the client at the home and show it to them. Maybe they fall in love with the home and you submit an offer for them...that's great! Maybe the house did not live up to their expectations, but they are house hunting...now, you have a new client. It's a win for you either way!

There are some rules...most of them are really just common sense!

• Contact the LLB and let them know you are marketing the property.
• Do advertise HUD homes in a professional and ethical manner

– Do not destroy, damage, or remove the advertising, including signage, of another HUD-registered selling or listing agent for any HUD Property

– Do not state or imply the price of the property differs from the list price

• Do not imply exclusivity

                        – The HUD Home Sales Process is an OPEN Selling Process

• Be positive and proactive in your HUD Home advertising
• Refer to HUD Homes as "HUD-owned", "HUD-acquired" or simply "For Sale"
• Do not place signage in a HUD property’s yard. Only the LLB can do so.

– Agents can use directionals but do not abuse this right! Limit directionals to an appropriate number

• Always include the Equal Housing Opportunity Logo
• Always include a HUD-Home Disclosure and link to the HUD listing site www.hudhomestore.com for more information.
• Note any flood plain zones, or other warning information as it appears on the property’s Internet listing, if applicable
• Adhere to all federal, state, county, city and real estate commission advertising regulations as well as complying with the Truth-in-Lending Act when advertising HUD Properties

• Including but not limited to: Blind Advertising, regulations regarding directionals, etc.

 

See? Common sense! Just use common sense and courtesy.

It's a great way to help you expand your book of business and  help buyers find a home!

 

About the Author

Tony Smith is a second generation REALTOR® and owner of Wanda Smith & Associates with over twenty years handling Real Estate Owned (REO) properties and is proud to represent HUD through KM Minemier & Associates Real Estate Services.  Licensed for 35 years, Tony has been active in leadership in the industry for decades; he is past president of the North Carolina Association of REALTORS® (2015) as well as past president of the Charlotte Regional REALTOR® Association. He is currently a Federal Political Coordinator for the National Association of REALTORS®. Tony is a passionate advocate for both REALTORS® and consumers in today's fast moving real estate market.