Posted by Matt (MPD) IL on March 14, 2006 at 12:10:07:
Obviously the net to hud number must vary from market to market. For years, when GoldenFeather was running the show for HUD we were able to get deals where the net to HUD was only 84% of list. That seemed to be the magic number nationally for a long time as well with other people saying the same thing here on CRE.
Today with HMBI, we’ve offered less than the 96% that you talked about and have still gotten deals as well. I don’t know of a magic number yet as we’ve only been tracking HMBI for a short period though.
I will say this as an aside, none of these were more than 30 days on the market either. The most recent one I picked up was only in the investor period on the second day when they accepted our offer.
List price is $133,000. The home is 5 years old and in perfect condition. The home was listed at $150,000 for
a little over 300 days and did not sell (before the foreclosure). It sold new for $171,000 in 2001. You can’t buy a new home in that subdivision for less than $170,000 (they’re still building). There are no comps. Realtor
estimates value at $150,000. I’ll be bidding as o/o. Thanks!
DaveD is correct in that when dealing with HUD the bidding process is very impersonable.
i have been a real estate agent involved in quite a few HUD purchases for buyer clients over the years. i find that HUD will not except a bid unless the NET proceeds to HUD is within 4% of asking price.
i would guess some bureaucrat developed a formula and that is why and how it works. who knows. but that is what i have noticed.
Re: How much to bid on HUD home - Posted by DaveD (WI)
Posted by DaveD (WI) on March 13, 2006 at 14:18:19:
Most of the TV shows I see where they are selling a house for retail (o/o) the realtor suggests that you bid higher than listed price. That way, you are more likely to win the bidding frenzy that is sure to happen
Hud bids are kinda last century, if you get my drift.
Truthfully, since you are dealing with HUD and a realtor, you are so far away from where the decision is really made it doesn’t much matter what kind of price you throw out there. You have no chance of connecting with anyone on a personal level. Great buys are made when you are the only person with a solution, not when the whole world knows about the house.
