Question Details

Cbalcome, Other/Just Looking in Elgin, IL

Advice on buying a HUD home

Asked by Cbalcome, Elgin, IL Thu Nov 27, 2008

I am going to be submitting a bid on a HUD home tomorrow and need some advice on how low I can bid and still be accepted. Is their anyway to see what bids have been submitted so far? The house went on the market on the 21st of November and owner/occupant bids are being accepted through the 30th. I really want this house, but don't know how low I can bid without them rejecting my bid. The house is listed at 103,000.

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There are a few things you need to know first off your buyers agent can chose there commission up to 5%. The buyer needs to know that the agent commission will affect if they win a bid on a HUD home auction. 3% is a fair commission and in UTAH I have decided to accept 2% as the commission. Also some other useful items the buyer needs to know is HUD has determined that 82.5% net of the offered price $ to HUD is an acceptable bid. Below that they will reject it. So you add your Realtor commission on top of that. If your bidding on a daily bid property or a property that didn't receive an acceptable bid during the owner occupied bid time you can offer 84.5% with me or 85.5% with most agents and win a property. If you need closing cost add them on top of that $. I still find the best place to view HUD homes is http://www.GoHUD.com I love the national search by $. It's very interesting to see how many homes are less then $20,000. or less then $5,000 for that matter. Happy Hunting
Web Reference: http://www.GoHUD.com
0 votes Thank Flag Link Sat Dec 20, 2008
No you can NOT see the bid during the original bidding process. The bid results and Bid statistics are posted the f\ollowing week or so. So if noone wins the bid at least you can see what the low bids were that the bank isn't taking. The problem with HUDS here in the midwest lately is that they are at or very close to fair market value, so they are NOT a bargain. And whenever a auction happens people tend to let their egos get in the way and they overpay for the house. A good real estate agent will do comps on this house and tell you what it is worth. If they tell you $125,000, then I'd suggest to any of my clients they go a couple of grand over asking and make it a bizzare number like 106,782.00. AND another thing that you need to take into consideration is the selling agent gets to pick their commission. So even though you may have the HIGH bid, if your agent is asking more commission than the next buyer at a lower GROSS price, you will still lose the bid. HUD looks at the NET to them AFTER commissions , repair allowances, closing cost credits, etc. Find an experienced HUD Broker! Good luck!
0 votes Thank Flag Link Sat Nov 29, 2008
HUD Homes are great homes to buy. The bids are sealed and you will not know who placed a bid or for how much. I have written a book "How to Buy a HUD Home" . You can get the book at no cost by going to my website. It should answer most of your questions. Please go to http://www.Find-A-HUD-Home-Today.com
0 votes Thank Flag Link Thu Nov 27, 2008
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