Buying Hud Homes
Thinking about bidding on a hud property, price is 130k need about 5k in repairs, I have no experience with hud, howerer I do have a hud agent. The fmv is 131. I know theere are experience people who have probably dealt with hud before. I was thinking about bidding 100k, what do you think????????????
In my area I've never seen any accepted bids on HUD homes less than 89% of the asking price, which would put you at $115,700. Lately here all the bids have been very near, at, or often times above the asking price. Depends on how hot the RE market is in your area. Houses here dont stay on the market long, often times less than a day. The amount they will accept also is determined by how long the property has been on the market. If you have an agent like mine, however, he'll put in any bid I ask him to, even if its a real long shot.
what is difference between hud homes and bank foreclosure, how do i know which is which when i see a house for sale? i know this is a dumb question, but i am learning
I really can't help a lot but I can tell you that hud is a government agency I THINK, Housing & Urban Development. I found this house under www.firstpreston.com it is on the mls but not under reo. I'm new it this sorry I couldn't be of more help. They also have a bidding process as well as special forms. Check out their site.
newbie001,
If the property is a new HUD listing, then the first ten days of the bid period are restricted to owner occupants. As a rule of thumb, in the first 45 days of a HUD listing, HUD will not accept bids from owner occupants where the net sale proceeds to HUD are less than 89% of the list price.
For investor bids, HUD will not accept bids where the net sale proceeds to HUD are less than 87% of the list price.
This means that if you allow the typical 6% sales commission paid by HUD, your bid must be at least 92.6% of the list price ($120,380 for your example property). Depending upon the property and the market, there may be a lot of demand for HUD foreclosures -- so much so that the winning bid is above the list price.
I have not seen any bargains in the HUD inventory for quite some time. I still look, but I am not making any offers at this time.
Newbie;
First off, all HUD cares about is their
net to hud. You need to find a broker who will take a fixed commission such as $500.00 - $1000.00 so you can be competitive. Also, in regards to deals, they are much harder to find than in the past. If you are going to go this route,
you need to bid on multiple properties
in order to possibly get one accepted.
I would also try working the pre-foreclosures. Also, you need to educate
yourself as well. Buy Ron Legrands program on this site. Go to "shop" and then "consignment."
Best Riches,
Jeffrey Adam
[addsig]
Thanks you guys are really helpful!!!!!!!!!!!!!!!