for a hud owned home is it normal to offer less than asking price and how much lower should you go than the asking price when making a bid thru agen

Asked by Kathy, 27610 Mon Oct 3, 2011

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15
Unspecified, Home Buyer, Wichita, KS
Tue Sep 24, 2013
This is a critical and important question. Most people are looking for a rule of thumb based on averages and the advice that it all depends on how much you value the home personally does not address that. I have no experience with HUD homes but I have done my research on MLS properties in my Midwestern medium sized city. The local Realtor association reported that homes sold for an average of 10% less than list price. That probably refers to the listed price just before sale, not the original listed price, and you will notice that many properties remain on the market for months or years being listed, delisted and relisted at lower and lower prices. HUD does not report this information and a real estate agents' opinion of the average based on their experience is not meaningful unless they are recording the variance between sale price and list price on a large sample of properties - they are not. The market for HUD homes is MUCH smaller especially when the property is in an exclusive bidding period. This suggests that they do not get many offers relative to MLS properties and that you have a lot of leeway in offering less and getting a sale price well below asking. Based on this I would guess that it is not uncommon to buy HUD or other government forclosures at 20% below asking price. So on average - offer less than that.
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Tasha, Home Buyer, Temecula, CA
Tue Jun 4, 2013
do i submit social security number to the agent to make a hud bid
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Thomas Bohlm…, Agent, Rolesville, NC
Fri Oct 7, 2011
Kathy

Sevearl HUD homes also get competitive bids, and sell for MORE then the list price.

Good Luck
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Margaret Hor…, Agent, Cary, NC
Mon Oct 3, 2011
Kathy,

It looks like you are already aware that your offer must be submitted by an agent who is approved for HUD sales. Your best bet is to be sure that your agent is not only approved by HUD to submit an offer, but has a track record of success with HUD bids. Some HUD properties sell for less than asking price, but some actually sell for more. You need to work with a seasoned agent who can advise you on the particular house that you want. Ask the agent how many HUD bids they have submitted in the past year and how many were successful. Structuring a successful HUD bid is not one-size-fits-all, but must be tailored to the specific property and you want someone who has done it, not someone who is learning how to do it.
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John Nethert…, , Raleigh, NC
Mon Oct 3, 2011
Kathy...absolutely! I have sold a number of HUD homes and have been very successful in getting my clients an excellent deal. Be aware that once your bid is accepted, it can be a very tricky process...having someone who has dealt with HUD homes can be very beneficial to you.

John Netherton
919-434-7308
john.netherton@ziprealty.com
http://www.ziprealty/agent/jnetherton
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Carmen Brode…, Agent, Scottsdale, AZ
Mon Oct 3, 2011
You really need to look at comparable closed sales because that is typically what the bank is basing their pricing off of. In the Scottsdale/Phoenix area we are seeing a lot of these homes go for above list price. It is becoming common for them to go into bidding wars right away.
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Scott Godzyk, Agent, Manchester, NH
Mon Oct 3, 2011
Kathy you should never base an offer on an asking price, you need to assess what the home is worth and make an offer at or just below current market value.

http://www.trulia.com/blog/scott_godzyk/2008/08/so_you_want_…

please see my blog with tips and advice on buying a bank owned home.
Web Reference:  http://www.ScottSellsNH.com
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Venita Peyton, Agent, Raleigh, NC
Mon Oct 3, 2011
Hi Kathy. Closed on a HUD home recently in Farmington Woods. There were really good prices in Battle Ridge also. One offer wasn't accepted, as HUD accepted someone else's. When that one fell thru, they wanted to know if we were still interested (by then we had moved on). Later they reduced the price to the amount we had offered previously - but by then I didn't have a Buyer.

Would love to help you - if you're not under contract with a Buyer Agent.
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Conder Realty…, , Raleigh, NC
Mon Oct 3, 2011
Yes, its normal to make an offer less than asking price. I've seen offers higher than asking price too! The real answer is that each house is different and should be handled case by case. In wake county, the average sales price is 3% less than list price.
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Dan Tabit, Agent, Issaquah, WA
Mon Oct 3, 2011
Kathy,
The asking price is not based on hard indisputable information. It is an opinion of the listing agent and the seller based on their understanding of the comparable sold homes, their motivation and the current market.
Your offer should be based on your own agent's research of comparable sales, the condition of the home and your motivation.
Some homes are listed at a low estimated value to encourage multiple offers and result in a quick sale. Others are overly optimistic as the value. They don't factor in deferred maintenance or even damage which must be corrected in order to sell.
It's very important that you have your own agent to do the research and review it with you, to ascertain the popularity of the home and advise you to a winning strategy if you want the house.
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Karen Johnson, Agent, Raleigh, NC
Mon Oct 3, 2011
Hi Kathy.

It is normal to make an offer less than list price on any home. How much less depends on several factors, including the amount of current liens on the home and the current market value. A good Realtor can help you with determining any mortgage amounts on the home and what similar homes have sold for in the current market. Call or email me with more details. I'd be happy to help.

Karen Johnson
RE/MAX United
919-605-6981
Karen@KarenJohnsonRealty.com
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Eric Olson, Agent, Raleigh, NC
Mon Oct 3, 2011
Yes it is normal. Call me and I'll show you how.
Web Reference:  http://www.EricSOlson.com
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Michael Colv…, Agent,
Mon Oct 3, 2011
Hello Kathy
It is driven by many factors, asking price, how well is it priced for the market, how long has it been available, you must have a Realtor to bid on HUD properties, they will be able to help you with a fair price.
Michael
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Michael Colv…, Agent,
Mon Oct 3, 2011
Hello Kathy
It is driven by many factors, asking price, how well is it priced for the market, how long has it been available, you must have a Realtor to bid on HUD properties, they will be able to help you with a fair price.
Michael
0 votes
, ,
Mon Oct 3, 2011
Regardless of the asking price, you should make your offer based upon the recently sold comparables and the condition of the home with relation to the other comps. HUD always pays for you to have buyer representation so you should hire a buyer's agent to assist you. Expect to get a fair deal, not a steal.
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