Would You Buy A HUD Foreclosure In A Subdvision They Are Still Building New Homes
Hello everyone!
Been reading this forum DAILY and I do not believe I have seen my question come up before. I am trying to determine if HUD homes can be bought in still developing sub divisions.
I have an opportunity to view a HUD foreclosure on Thursday. However, the property was only built in Oct 2002. I have not yet asked the agent for the current comps, but the local county tax website listed four sales in 2002 that went for as low as $55 a sq ft. This property is a 2261 sqft 4/2.5. Thus, the assumed MV is $124,000.
Since the home is only 18 months old, I am going to assume there is no foundation work required and few other repairs necessary (paint and maybe carpet, etc).
Using my formula of assuming 10% for unexpected repairs and a profit margin of 20%, do you believe the HUD agent will take as low as $86,800? I want to stay conservative and use 10% for an Uh-Oh expenses, but with the property being so young, I guess it is possible for this to be reduced.
Again, what do you think? Can you buy an HUD home in a still developing subdivision? Do you think the agent wil accept $86,800.?
Any opinions would be appreciated. Thanks!
Bueller? Bueller?
if this is one of the first homes in the sub. and you buy can it at a discount it will be a good deal. the other newer homes will only increase the value of the f/c. i have dealt with hud in the past and i have found they don't discount like they did in the past. they have have an appraisal value and they stick to it close but if the home is to my liking i would make an offer all they say is "no' they can't eat you. the agents i have dealt with are nice and will try to make a deal.........kenmax
I called an AGENT and he told me that they would not take less than 90%. According to the research I have seen, 16%-18% below "AS-IS" is suppose to be the unspoken and unofficial bottom line price.
Is this true?
Additionally, if the property says "ALL DAILY PURCHASERS" this means I can bid at any time right?
i stopped dealing with hud and va i found i could find better deals with private owners. va says they will sell at appraised value and will loan the remodeling amount to remodel it to appraised value that for me is not worth doing ........kenmax