Posted by Gene SC on December 08, 1999 at 24:54:13:
What your broker is telling you is true except that if the property hasn’t sold in 46 days then HUD can and may accept a discount of 20%. If you are a teacher or a
police officer some properties can be bought at 50% discount. Good Luck
Losing hope for HUDs - Posted by Alex
Posted by Alex on December 07, 1999 at 22:29:40:
My wife and I are rookies and are trying to break into RE investment. We were thinking of bidding on HUDS here in florida, specifically Palm Beach County. My question is there $ amount restrictions on what you can offer on a HUD wether it be owner occupy or investor. I had a conversation with a local HUD broker and he informed that HUD would be willing to take 7.5% discount and no less with a maximum of 15% including commissions and so fourth. He did explain that depending on the length of time they hang on to the property they will make a price reduction. He also explained that it would not be worth his time to put in an offer more than 7.5% off of there listed price. He futher explained that this was a directive of HUD. Am I getting snow balled???
Thanks Alex and Michelle
Re: Losing hope for HUDs - Posted by Chad in WI
Posted by Chad in WI on December 08, 1999 at 07:45:12:
I finally got an accepted offer on a HUD home in Wisconsin last week. It has been on the market for about 9 months. My accepted offer was for 66% of the original listed price, and 61% of appraised value, which it was appraised in February 1999. I have been keeping track of the house for 6-8 months, and have made at least 5 offers. I guess there finally is a LITTLE hope.
Re: Losing hope for HUDs - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on December 08, 1999 at 06:20:21:
Before the most recent changes took place at HUD, if a property stayed on the market over 6 weeks here, they would be willing to take 20% less than the list price. I bought one of these about 2 1/2 years ago. Things have changed in the last year. I have seen properties stay on the HUD list for over 12 weeks. With offers of up to 90% of the listed price. HUD refuses the offers. They put the property on the next HUD auction. At auction, many inexperienced investors actually bid over the list price, just because it is an auction. I even had one person tell me “I bought it at a HUD auction, so it must be a good deal”. Wrong answer!!!
I have pretty much stopped looking at HUDs. Here they go for list price or better. NOT my idea of a good deal. If I were you, I would look for motivated sellers, and right now HUD is not one of them. You might do better looking at bank-owned REOs.
Good luck in Palm Beach County, beautiful part of the country.