Advice on buying a HUD home

Asked by Cbalcome, Elgin, IL Thu Nov 27, 2008

I am going to be submitting a bid on a HUD home tomorrow and need some advice on how low I can bid and still be accepted. Is their anyway to see what bids have been submitted so far? The house went on the market on the 21st of November and owner/occupant bids are being accepted through the 30th. I really want this house, but don't know how low I can bid without them rejecting my bid. The house is listed at 103,000.

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2
Tom Winand, Agent, Salt Lake City, UT
Sat Dec 20, 2008
There are a few things you need to know first off your buyers agent can chose there commission up to 5%. The buyer needs to know that the agent commission will affect if they win a bid on a HUD home auction. 3% is a fair commission and in UTAH I have decided to accept 2% as the commission. Also some other useful items the buyer needs to know is HUD has determined that 82.5% net of the offered price $ to HUD is an acceptable bid. Below that they will reject it. So you add your Realtor commission on top of that. If your bidding on a daily bid property or a property that didn't receive an acceptable bid during the owner occupied bid time you can offer 84.5% with me or 85.5% with most agents and win a property. If you need closing cost add them on top of that $. I still find the best place to view HUD homes is http://www.GoHUD.com I love the national search by $. It's very interesting to see how many homes are less then $20,000. or less then $5,000 for that matter. Happy Hunting
Web Reference:  http://www.GoHUD.com
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Robb Spearman, Agent, West Des Moines, IA
Thu Nov 27, 2008
HUD Homes are great homes to buy. The bids are sealed and you will not know who placed a bid or for how much. I have written a book "How to Buy a HUD Home" . You can get the book at no cost by going to my website. It should answer most of your questions. Please go to http://www.Find-A-HUD-Home-Today.com
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