I rececenty closed on a Hud property for 81,000. It was listed as a 2 Bedroom House. Someone took out a wall to make one of the bedrooms bigger thus eliminating one of the bedrooms. We are putting back the wall which will make it a 3 bedroom. It needs about 1500.00 in fix-up which should take 3 weeks. Current fair market value is 120,000. I think this was a good buy. It was marketed in the winter and things were slower. So if you look not all Hud’s are bad deals.
Judy
Posted by Bill K - FL on April 28, 2000 at 08:49:33:
Someone recently asked a similar question. Here’s two quick examples. House listed for several months at 79K needing 10-15K in repairs. Rehabbed value at 85K. Price “reduced” to 71K. Sold for 72K. It’s great to break even isn’t it?
Example two. House listed on MLS for 89K for six months. No sale. Foreclosed and relisted by HUD for sale for 93K. I guess those vacant houses are like a fine wine, they get more valuable with age. Buyer Beware!
The main problem I’ve noted with HUD listings is that the “appraised” amounts and list prices bear very little relation to the actual property. I do not know what their method for setting price is but it’s not one any professional realtor would go by. It’s typical government incompetence. I have heard over and over that the HUD homes are overpriced, and also tend to get bid up too high by unsophisticated people. I was once even told by a realtor who specialized in sale of VA repos that he refused to deal in HUD homes because he could not in good conscience tell the buyers they were paying a fair price (ever heard a realtor say something like that before?!)
Having said that, I also know that there are some good HUD bargains for those willing to sift through the listings over time till a good one comes along. If a property does not sell HUD will periodically drop the price. If you see something you like, keep track of it and the price may eventually become acceptable. I once got an excellent deal on a HUD duplex, but this was at a live auction as opposed to the current on-line auctions, and live auctions have been phased out in my area (S. CA).
I rececenty closed on a Hud property for 81,000. It was listed as a 2 Bedroom House. Someone took out a wall to make one of the bedrooms bigger thus eliminating one of the bedrooms. We are putting back the wall which will make it back into a 3 bedroom. It needs about 1500.00 in fix-up which should take 3 weeks. Current fair market value is 120,000. I think this was a good buy. It was marketed in the winter and things were slower. You are right about alot of them being overpriced, you just have to look for the few that are still good deals. I still always follow the Hud List.
Judy