Home Buying in Fort Worth>Question Details

Smh, Home Buyer in Fort Worth, TX

i'm want to bid on a hud, it's listing for 89,000. whats the lowest i can bid for and they still pay 3% of my closing cost.

Asked by Smh, Fort Worth, TX Sat Mar 27, 2010

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7
Here are your considerations:


1. HUD homes are often times are already priced below market value. If you're looking to get a deal, you probably already have one at the price it is listed. You can bid any amount you want,but the aspects that control the actual NET OFFER are based on the price you pay, minus any requested closing costs and minus agent commission.


2. If you are bidding as an Owner Occupant as opposed to an investor, your chances are better as HUD will give to an Owner Occupant over Investor each time.


3. Now assuming you happen to be the only bidder on the property and you wanted to determine the lowest value you could bid, HUD gives you their expected price in a few places throughout their website. HUDs usually sell at 93% of their asking price.


In conclusion, the only way to determine the best price to bid on a HUD is by obtaining a CMA from a Realtor, the amount of commission the Agent will charge to submit the bid (up to 5%) and finally if there was any previous bidding history. Then you can make an informed decision about what to offer. If all you are looking to do is see how far below the list price you can go, you may want to rethink exactly what you are trying to accomplish.

If you would like assistance in placing your offer, I would be glad to assist you .
Robert Regan
214-586-7224
Rob@RKRegan.com
0 votes Thank Flag Link Sat Mar 27, 2010
In addition to what's already been posted, you can bid whatever you want, but the winning bid will be the one that is the highest net offer AND that is acceptable to HUD. In other words, you won't know unless you're the winner. Also, not only will a real estate agent have to enter the bid for you, but it will have to be an agent that works for a HUD registered brokerage.

I have an article on my site with more info on the process: http://www.kingrealtyteam.com/2009/12/15/buying-hud-owned-homes/ or you can go right to the source and check the site of the asset management company that manages the selling of HUD homes in our region: http://www.southwestalliance.com/sw_hb_buyproc_govowned.asp
0 votes Thank Flag Link Sat Mar 27, 2010
It is a completely silent bid process. If you do not have an agent i would be happy to put in your offer an lower my commission so your net bid is higher.

Don't hesitate to call

RJ

214-682-0598
0 votes Thank Flag Link Sat Mar 27, 2010
SMH...the HUD list price is the "As Is" appraisal price, so that's what HUD thinks it's worth. We often see HUD properties go over the list price, especially if they are in great condition. So the trick is you don't know if you are one of 100 bidding or the only one bidding. Typically the nicer homes we've seen get lots of offers.
So bottom line is none of us know the lowest you can bid. I think at one HUD seminar I went to they said the average sales price to list price of HUD homes is something like 97%. I've seen some go cheap, some go for more than list price. I've seen one with 70+ bids.

You might look at this doc for assistance http://www.hud.gov/offices/adm/hudclips/notices/hsg/files/h01-13.doc

Let us know if we can help you bid.
You do need an agent to place the bid.
To search all HUD foreclosues, just follow the link below.
0 votes Thank Flag Link Sat Mar 27, 2010
I heard that what ever you bid over the appraised value asking price you have to pay in cash. example: if they are asking 60K and you bid 63K , you have to pay 3K in cash. Is this true?
Flag Fri Sep 14, 2012
I heard that what ever you bid over the appraised value asking price you have to pay in cash. example: if they are asking 60K and you bid 63K , you have to pay 3K in cash. Is this true?
Flag Fri Sep 14, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
In my experience some properties go thousands of dollars OVER the listing. It just depends if there are multiple offers. You could also bid lower. It just depends on the house, location, etc. I would like to help you further.

Joan Coubarous
Keller Williams Realty
827-542-8968
email:joancoubarous@kw.com
0 votes Thank Flag Link Sat Mar 27, 2010
Your agent should do a market analysis and research the home to find out what the amount of the lien is. Also, if it was listed before you can see what the accepted offer was.

If you don't have an agent, I'll be happy to represented you. Give me a call.

Naima
214-289-8555
Naima@Sumner-Realty.com
Web Reference: http://www.sumnerrealty.com
0 votes Thank Flag Link Sat Mar 27, 2010
That's too hard to answer. It's going to depend on the bank and what they are willing to take for the property. The bank will be looking for the best and highest offer. Many times the bank will list the property below market value to get multiple offers and sell for above list price.

You need to find out what similar homes in both size and location are selling for. Make your offer based on what you feel is fair. The bank may counter your offer if they don't receive any better offers.
0 votes Thank Flag Link Sat Mar 27, 2010
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