There is a lot of competition in the market for HUD homes. Most HUD homes receive multiple bids; in many cases there are numerous bids for a single property.
Ask the real estate agent the following question: Do you show HUD properties to multiple buyers? If the answer is, "Yes" the matter merits some serious discussion.
If a real estate agent is working with multiple buyers for the same property, how does (s)he handle the following questions? It is reasonable to think that a buyer will WANT and EXPECT guidance to help a buyer achieve an advantage over other buyers in the market. It is an agent's job to provide counsel to provide a competitive edge to will help secure a property. Here are some key questions to ask your buyer agent:
How much is the property worth?
How much should I bid?
Do you already have other offers on this property?
Are you aware of any other offers on this property?
Have you written other offer(s) on this property?
Do you expect to be writing other offers on this property?
"Buying a HUD Home - Tips on Workiing with a Real Estate Agent," is the title of an article appearing at the link below.
First, any public buyer MUST use a HUD approved broker to submit and offer. The vast majority of brokers already have this approval, but you need to check with each office to be sure. For what it's worth, it doesn't cost the buyer anything to have and agent submit the offer. The commission is paid by HUD.
Next, when a house comes on the market it is open for a certain period for bids by individuals or preferred groups (teachers, policemen, charities), then for a certain period to individuals who intend to use it as a primary residence, then later opened to regular investors.
HUD also is offering some excellent incentives to buying their homes, but I would suggest you also consider bank owned properties and short sale properties, as they often offer a better value overall.
An agent must always submit the bid for you. I believe the only time they do not if it is part of the good neighbor program. I am waiting to close 2 HUD homes now and have an offer on another.......if you do not have an agent I would be happy to help.
Check out my website for foreclosures and HUD listings. http://www.grForeclosures.com
I have a blog on this subject - here and at active rain........... http://relocationgrandrapids.com/2009/01/07/buying-a-hud-hom
I believe the only time you do not need an agent is if you are doing the good neighbor program. (Police - teachers). There is a lot work and follow up. You really do want a agent to help.
The one I am wotking on now, my buyer called the rep working on the deal, they called me back. They really do want you to work with an agent. The are so very busy, I think they want experience people to help make the trasation go smoother.
I submitted a HUD offer as recently as last week so feel free to contact me for more info.
All HUD homes can be bought by having an approved agent to represent you. That means all offers must be written by the agent. It does not make any difference if it during owner-occupant or when the bid is open for all. You can always find an approved agent by visiting or calling any real estate office nearby. Ask if they are approved to sell HUD homes.
Derek Bauer, Associate Broker / Realtor
Real Estate One