We've just found a home that we like, it's a HUD. We don't know what to bid on the house, is there a general guideline?

Asked by Michelle Johnson, Houston, TX Sun Apr 28, 2013

We've just found a home that we like, it's a HUD which means we have to bid on the house through a realtor. We don't know what to bid on the house, is there a general guideline? HUD's list price is $153,000 and the appraised price of the home is $152,060. Wereally like the house but have no idea what to bid. Any suggestions or advise?

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Christina Ha…, Other Pro, Morristown, TN
Mon Apr 29, 2013
How much money do you have saved up? Have your agent calculate your closing costs, then offer over the asking price a price you feel comfortable with. Remember your bank account should reflect a minimum of 3 months of reserves.

Best of Luck;

Christina Solorzano;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Broker of more than 10 years
http://www.everlastingcredit.com
0 votes
Tom Sommers, Agent, Lakeville, MN
Mon Apr 29, 2013
Typically HUD lists their homes for what the appraisal comes in at. However as of recent I have seen that change. The mot important thing to remember is that if you are an FHA buyer you have to use the FHA appraisal HUD has on file for that home. What this means is that if you offer more that what the home is listed for and win the bid, you will be expected to bring the difference in cash in addition to your down payment. If you are a conventional loan or cash that does not apply.
Good Luck,
Tom
0 votes
Maria Gilda…, Agent, Manchester, CT
Mon Apr 29, 2013
A HUD broker or an agent of a HUD broker can help you put a bid on your behalf.
HUD properties can be an excellent opportunity for home buyers.

First, make sure that you are prequalified.

Second, make sure that you are getting the financing which is appropriate for the condition of the
HUD property you are considering.

Third, you have to be ready to sign all paperwork required by HUD immediately if you win the bid and Also, have the cashier's check made out to HUD ready (tiered according to the purchase price).

Best of Luck.
0 votes
Vicki Warren, Agent, Sugar Land, TX
Mon Apr 29, 2013
Hello Michelle,

You are correct in that you would need to have a HUD certified agent/broker place the bid on your behalf. The agent's broker must have an active NAID number. Are you currently working with a Realtor experienced in HUD homes? If so, s/he would be your best source of advice on a bid price.

If you're not currently working with a HUD certified buyer's agent, I would love to go over details and discuss strategies with you. I am well-versed in selling HUD homes and have extensive knowledge of the neighborhood of the home you are interested in

Best regards,

Vicki Warren
(281)804-8282
http://www.mbarealty.net
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more