Foreclosure in Bakersfield>Question Details

Barbara, Home Buyer in Bakersfield, CA

I would like to bid on HUD condo that has a listed appraisal of 63,500, what does this mean exactly? Would the expectation be that I would bid more?

Asked by Barbara, Bakersfield, CA Sat Apr 16, 2011

or less than that? Does that represent the lowest HUD will go? Or is it just a ballpark figure of some kind? I would really like to have the condo at lthat price, but am willing to pay a litttle more if it would I would have a good chance of being successful. What would investors and people in the know be likely to do?

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Chasity Goodson’s answer
HUD is different than other REO's. In a typical transaction you can get an appraisal on a property and if your appraisal comes in for less than your offer you can try to negotiate the sales price to match the appraised value so your financing is not affected. HUD does not allow you to do this. If the appraisal comes in low and you are not willing to pay the difference in value in addition to your minimum required down payment the transaction is cancelled and opened for new bids.

They are telling you the value because it will assist your realtor and loan officer giving them the ability to foresee potential problems.
0 votes Thank Flag Link Sat Apr 16, 2011
Your buyers agent needs to assist you with all these questions.

Opinion here would have not value to you considering not seen the property assist with any recommendations for bid .

"Investor and people in the know" - have Realtors who represent them

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Sat Apr 16, 2011
Investors would, most likely, never buy a HUD home. Investors are looking for motivated buyers and will negotiate the best price they can. Many times, banks are not that motivated. If the investor does not get a good price, they'll walk. And an appraisal price of 63,500 is most likely market value. You see when I do an appraisal for a bank or HUD home, I'll give the bank four different values. The value "as is," "as repaired," and "as is, as repaired with a set marketing time of lets say 30 to 90 days. These numbers will give the bank all of the information they need to determine if they should fix the home or sell as is and for what price. If it's a HUD home, many times, there's something wrong with it (cracked foundation, didn't sell for the old listing price, too high of HOA fees for what you get). And the list could go on and on. In some cases, you'll just get lucky if it works, as I've heard of a few of these deals that actually work. But in most cases, I'd be very, very, very careful.
0 votes Thank Flag Link Sat Apr 16, 2011
Hi Barbara,

HUD runs their bids like an auction. There is no countering offers, no inspection period, if you're bid is're in. MOST HUD homes close escrow (sell) for VERY close to the asking price or slightly above. MOST. Typically HUD doesn't even look at bids which are not within at least 10% of the asking price.
If you would like more info, please feel free to call me anytime. These properties are typically priced very aggressively to begin with for a quick sale.

Tesa Noonan 661-717-3394
Coldwell Banker Best Realty
0 votes Thank Flag Link Sat Apr 16, 2011
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