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