Home Buying in Charlotte>Question Details

Carmen, Home Buyer in Concord, NC

Can I place an offer and bid...?

Asked by Carmen, Concord, NC Sat Jan 5, 2013

Hello,
I was just curious as to being able to place an offer on a Fannie Mae house and a bid on a HUD home at the same time? Is there any difference between the terms?
A couple of friends have encouraged me to do so since there will be a better chance of at least one being accepted. The one I really would like is way overpriced anyway so I doubt that my offer (about 30K below list) would be accepted anyway (house needs major work done).

I appreciate your professional insight as I would like to have some advice. It seems that a lot of people do this, but I just want to make sure that this is OK (and legal!)

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I second Ron Thomas's counsel that you should really sit down with an experienced Broker in Charlotte and have them advise and assist you.

Foreclosure and HUD homes are rarely the deal most buyers believe them to be. See the following:
http://www.trulia.com/blog/LarryTollen/2011/11/buying_forecl…

If you place two bids at once you run the risk of both being accepted in which case while it's legal to simply renege on one offer I would suggest that it's hardly ethical or fair )though when it comes to banks and ethics a case could be made against the banks). This i not something I would typiclly advise.

For finding an experienced broker who won't cost you anything and will likely save you time, money and often problems see the link below.

Good Luck and happy house hunting.
1 vote Thank Flag Link Sat Jan 5, 2013
Good afternoon, Carmen:
HUD sets prices based on appraised value and if it is Fannie Mae or Freddie Mac owned home on the market in Charlotte today, it is very unlikely to be overpriced. I would rely on the advice of a professional that was completely aware of your specific situation, terms of financing, and the specific property. There are definitely strategies to follow when purchasing foreclosed, short sales, government owned, bankruptcy, estate, relocation or other distressed properties. If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be pleased to provide that service. If you appreciate this answer, please give it a thumbs up, or if this was the most helpful answer, please say thanks with a best answer click.
0 votes Thank Flag Link Sat Jan 19, 2013
You can bid on both, HUD homes are already appraised that is where the sales price comes from. I am experienced selling HUD homes it is very simple to place the bids and they are not official until you overnight the signed papework back to HUD. I know that the Fannie Mae offer process is much more intensive. If I were you I would just stick with HUD homes and see what happens. You can sometimes get them for under list price but it is rare, typically the winning bid is a little over list price.
Web Reference: http://www.jonnyagent.com
0 votes Thank Flag Link Fri Jan 18, 2013
Bidding on multiple properties can be risky in that you don't want to find yourself contracturally obligated to move forward with each accepted offer. It is better to work with a Realtor who can focus your efforts on the one right property and help guide you to a successful outcome. As always, Realtors are happy to assist.

Regarding the $30k below listprice offer, remember that even foreclosures are (usually!) priced commensurate with the market. It is a misperception that the seller of a foreclosure property would or should accept an offer steeply off list price. If the property is listed at a price that is indicated by the market, such a discount would likely not be taken seriously.

Let us know if we can offer any further assistance to you as you work to secure the right home!

Tim RIchardson
on behalf of Donna Johnston and
The TalkCharlotte Team
0 votes Thank Flag Link Sat Jan 5, 2013
Some thoughts:
With the HUD home, you must have a Buyer's Agent representing you.
The Buyer's Agent, in all cases, is free to you.
As evidenced by your questions, you should have a Realtor advising you.
I don't mean US!
Please don't listen to friends for something so important.
Making Low-Ball offers, now, is a waste of time; if you aren't serious, you might as well stay home.
How do you know it was overpriced? Did you get a CMA done on the property?
Why would you assume that the LISTING PRICE did not include an allowance for the work needed?
Your Buyer's Agent won't let you do anything that is remotely ILLEGAL.
0 votes Thank Flag Link Sat Jan 5, 2013
Carmen,

Email or call me directly for advice if you don't have a buyer's agent! You don't pay me anything for my services!

You can bid on as many homes as you'd like, you get a 10 day right to back out with most foreclosures, so really, there's not much risk in bidding on multiple REO's.

John.Siddons@prucarolinas.com
704-458-1843
0 votes Thank Flag Link Sat Jan 5, 2013
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