Any advice for negotiating a price on bank owned hud homes?? Thanks.

Asked by Dobie, Elk River, MN Wed Nov 23, 2011

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11
Pat Stevens, Home Buyer, New York, NY
Mon Oct 24, 2016
I am looking at a HUD house today. The house will need 50K+of repairs. The asking price is 130K. I intend to ask for at least that much in price reduction, if i was to pay full price plus the repairs it would be over priced for the area. I am going to offer no more than 80K. I am also bringing my contractor. This will be the second showing of the home.
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Ldfmarketing…, Home Buyer, Herkimer, NY
Sun Jun 5, 2016
can I send offers for hud houses
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Cleo, Home Buyer, Minneapolis, MN
Fri May 6, 2016
Will HUD negotiate the price if something is found during the inspection?
Web Reference:  http://www.cyprus101.com
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Karen and Pa…, Agent, Cameron Park, CA
Tue Feb 2, 2016
Market conditions have changed but the banks still work the same. If you want to negotiate on a bank owned property comp the area and put in a price you wish to pay. If its low and your the only offer they may counter back. If another offer comes in and it's $1 more expect to lose out. Banks don't play games and don't care if this is your dream home. It's all business, period. If you really want a bank owed home you need to put in your best offer up front or you risk getting rejected. Every situation is different so you need to ask your realtor their opinion on what to expect in the current market.
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Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Wed Nov 23, 2011
Follow the advice of your Realtor, which is what they are paid to do, advise you how to purchase the home you want. Most of the mistakes I see buyers make is to discount the advice of the person helping them. Most of the mistakes I have made is rooted in not listening to the advice of those I trust.
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Sally Grenier, Agent, Boulder, CO
Wed Nov 23, 2011
P.S. Maybe you're referring to just "bank owned" homes and not HUD homes? They are two entirely different animals. With bank owned homes, there is definitely more room for negotiation.
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Sally Grenier, Agent, Boulder, CO
Wed Nov 23, 2011
Hi Dobie,
The HUD process is pretty straight forward. It's not like a normal transaction where you're dealing with a bank or a regular seller. You submit a bid, and it's either accepted or not. Period. Sorry if you don't believe me. You should ask your agent about buying HUD homes.
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Elizabeth Fu…, Agent, Wayzata, MN
Wed Nov 23, 2011
Right on Theresa! It is all about the bottom line. Before you make an offer, find out everything you can from public records. Your agent is the expert here and will be able to get you what you need, including a good run-down on the area, comparable homes, comparable situations, and sold" prices. Having made the offer, there may be some time lags. It is a good idea for you and your agent to continue to keep an eye on the property in case anything pertinent changes. When the bank decides to accept and set a closing date, the time may be very short and very limited. It is true that cash is king and this could mean makiing sure you have proof of funds, can act immediately, maybe in one or two days, and, if a loan is involved, that your lending source is also ready to act immediately and that you have continuous proof of access to immediate funds. Good Luck! Liz, lisfullerhomes,com.
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Dobie, Home Buyer, Elk River, MN
Wed Nov 23, 2011
Sally,
With all due respect, I have a hard time believing your statement that there is no negotiating. Especially in this market.
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Sally Grenier, Agent, Boulder, CO
Wed Nov 23, 2011
Unfortunately with HUD homes, there is no negotiating. Most are priced pretty fairly to begin with. With HUD homes, you submit a bid online through your Realtor, and they take the one that has the best "net" to them. They honestly don't care how much you're putting down, or what type of loan you're getting, or if you're paying cash. It's all about the bottom line. Their "NET" will be Purchase price, minus agent commissions, minus any "seller concessions" (aka closing costs) you're asking for. Many HUD homes sell for list price or above.
Web Reference:  http://www.sallygrenier.com
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Teri Eckholm, Agent, St Paul, MN
Wed Nov 23, 2011
Hi Dobie,

I have noticed this fall there were many more multiple offers on bank owned homes. Do your due diligence on the property and have your agent complete a market analysis to determine a good price for the home. Use that information as a basis for your bid.

Good Luck!
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