Re: Are Huds Duds? - Posted by T Jent
Posted by T Jent on April 30, 2000 at 24:27:58:
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).