Posted by Kerry_IL on March 06, 1999 at 20:32:55:
Brokers must be registered with HUD to submit a bid to HUD. Not all brokers are.
Tell this clown that you are thankful for their time, but that you guess you will have to find another agent to submit the bid you want.
Start calling other brokers. I’m sure there are others around that are registered.
HUD Bidding - Posted by chris
Posted by chris on March 06, 1999 at 12:56:18:
I do not have any experiance with buying a HUD house. I have just found one in my area that I am going to look at this afternoon. From looking through the windows I can tell it needs a tremendous amount of work. The agent helping me said that the “Price” listed by HUD is their asking price, she said if you really want to get it I should bid $100 over the list price. But I thought the price HUD gives is a minimum bid. So which is it? Any help anyone could give me about the bidding process and how to come up with a bid would be great.
Re: HUD Bidding - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 08, 1999 at 16:32:52:
I’ve recently been researching Phoenix HUD properties, and have done a quick analysis of Asking Price vs. Selling Price for successful sales. About 85% of the sales are at or above the HUD price. When they are above the HUD price, they are a hundred or two above, never more.
But, of the 15% that are bought below the HUD price, the average is 11% below asking price. Some of the deepest discounts I’ve seen in the month that I’ve been watching are in the 15% to 19% range, but they are rare.
This is for Phoenix, of course. Your area may treat the HUD price as the minimum bid, but you’ll have to check. I did all of this research through the HUD website for AZ, so maybe you could do the same for your area.
Hope that helps-
Stacy
CHECK THIS OUT ON HUD - Posted by PBoone
Posted by PBoone on March 07, 1999 at 16:11:47:
Huds home page is www.hud.gov find your state and area
They (in our area) will show previous bid results on past sales. see what is happening in your area.
Pat
Re: HUD Bidding - Posted by BR2
Posted by BR2 on March 06, 1999 at 18:53:15:
Chris,
I don’t know where you live, but in Michigan the listed price is the minimum. From my experience $100 over the listed amount ‘usually’ won’t get it.
Again, that’s how it is in Michigan. Try calling other realtors in your area for more info on HUD bidding and go from there.
Good Luck!
Re: HUD Bidding - Posted by Vic
Posted by Vic on March 06, 1999 at 15:59:21:
Hey Chris,
Two things about Hud from experience: first their asking price is not what you have to bid. My neighbor’s house was a Hud home and they were asking $35,000(needed work). He bid $9,500. They unexpectedly countered (they rarely do this) with $10,500. He gladly accepted. The property had been on the market for months so they were glad to get rid of it.
Second I don’t feel realtors are completely honest. Not all of them but plenty of them. Any realtor will tell you to bid the most. With Hud bidding over (as in your situation) is probably dumb. Your agent gets a large % if your bid is successful. So for 2 reasons she/he would say bid high: 1. chances of acceptance are high, 2. he gets a fat commission. Question your agents motive any time you are buying or selling.
Anyway, good luck and don’t bid high.
Re: Additional Tip - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 08, 1999 at 16:56:21:
I found the most helpful information on the AZ HUD website, under the broker’s page. There is a link “for brokers” that contains bid results, current properties, bid schedules, and bid rules. Look for one on your area’s HUD site.
Stacy
Bidding over asking price may be o.k. - Posted by Rick V
Posted by Rick V on March 07, 1999 at 12:05:14:
While it is possible that the realtor wants you to bid high so he/she can be assured of getting a commission. It is also very possible that you are being told the truth. In my area, HUD pricing is erratic. Sometimes it is way to high, sometimes it is way too low and sometimes it is in the ballpark. You need to know the value of the property and bid accordingly.
I have often bid higher than asking price and been glad I did. I have sometimes bid higher than asking price and wished I had bid even higher, because I lost the bid on a really good deal.
What do you do when… - Posted by AB
Posted by AB on March 06, 1999 at 19:10:47:
What is the best recourse when a realtor looks you in the eye and tells you " I will not submit a bid on a HUD property that is not above the listed price"? Can he do this?? We do not have much experience w/ gov’t repos, but I know realtors are required to present any and all offers on private RE. Is it the same for gov’t?
Thanks in advance
Re: What do you do when… - Posted by William
Posted by William on March 07, 1999 at 19:49:27:
Just find another agent like I did. I ran into the same problem you did. But went to another agent.