HUD Foreclosures require a Buyer's Agent; HUD is trying to protect you.
Your Realtor can answer most of these questions, and their services are free to you.
and they can do a CMA to determine the Market Value of the home.
HUD is pretty thorough, they are probably close to the Market Value at $260, but most of the HUD sales I have seen have gone at or above the HUD Listed price.
You are protected because, if you offered $270 and the Appraisal came in at $260, you could back-out, due to your Appraisal Contingency.
Don't worry about the Assessed value, that is not a solid guideline.
Good luck and may God bless
My issue is that this house is CHFA low income housing and has certain restrictions regarding income and sale conditions. How do these restrictions affect the fair market value? What kind of discount can be taken into consideration considering the limited pool of potential buyers (now and in the future)?
Thank you in advance.
Condition of property will also determine value as well as last sales.Make sure you do your diligence at Town Hall as Well. 70% of 260,000 is 182,000. Again, if you are local stop at Town Hall, I'm sure they will be very helpful.
There is not a formula.