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Carmen, Home Buyer in Concord, NC

HUD Home bid help

Asked by Carmen, Concord, NC Sat Jan 19, 2013

I was hoping to get some advice on a HUD home that I would like to place a bid on. According to my realtor, the listing price is the FHA appraisal which is $5K higher than tax value. When my realtor did a CMA, the average sales price and listing price were around $85K and this house's LP according to the FHA appraisal is $115K. The house is in serious need of updates and repairs as it seems that the previous owners did not maintain it well, but it is exactly what my husband and I are looking for. My husband can do the majority of the repairs as he has worked construction and maintenance. The house has been on the market for almost 30 days and the listing broker told my agents that the house has only had a couple of showings, but no offers.
My uncle buys homes and flips them and he said that he has brought a couple of HUDs at 25-30% off list price once it's open to investors (30 DOM). Any advice on how much to bid? Does the listing broker submit a CMA or BPO? Would HUD go by that?

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Answers

5
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Those days are OVER! These bank repos are already priced to sell.

You will need to pay a fair price for any home now, especially since home prices are going up!

Don't judge a good deal by how much you can get off the list price, rather the value you receive for the money you pay.

Plus, why buy a money pit anyway? I see people buy these so called "fixer uppers", spend a whole year or more of hassle, work and a ton of cash (usually put on credit cards) and in the end they could have simply paid a little more and bought a home that was already nice at the same over all price!

A 200k priced home now will cost 206k in 6 months, so buy now!

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0 votes Thank Flag Link Sun Jan 20, 2013
Hi Carmen! I am currently closing a HUD deal. My client did not offer over list price and won the bid, because there was not any competition. The property needs work and my client is using the 203K loan to make the repairs. If there are no offers you may reconsider not going over the list price by too much if any.
0 votes Thank Flag Link Sun Jan 20, 2013
I am with Danielle here. Discuss your bid strategy with your realtor.
0 votes Thank Flag Link Sun Jan 20, 2013
I have made more bids on HUD houses than I can count. I always recommend to my clients to come in over list. I have never helped a client buy a HUD home with a list price or less bid. But when I am dealing with clients that do want the HUD house and do bid accordingly, they have won the bid.

Best of Luck,

Josh Barnett, Realtor
Metro First Realty
Web Reference: http://www.GetSoldOKC.com
0 votes Thank Flag Link Sat Jan 19, 2013
You have a Realtor - best option is to utilize their experience & expertise.
0 votes Thank Flag Link Sat Jan 19, 2013
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