negotiating with hubzu

11 Replies

I won a bid on hubzu. My investor feels the price is a little to high and has asked me to negotiate for a lower price with hubzu. Is this possible and if so how do I go about it?

You need to give us more info. What was your winning bid. What was the ARV. What are the comps in the area. Why didnt you consult your investor on the bidding. Sounds like you are not on the same page. What about the deposit.

Never seen them agree to a price lower than your bid.  

I had a buyer that I was working with here in CT do exactly what you outlined. Bid was accepted by HUBZU then he wanted to renegotiate because he got cold feet. As his agent I thought it was a pretty slippery move on his part. Ultimately he got nowhere with the renegotiation but that property is still on the market and has recently dropped lower than what his revised offer was.

winning bid-$62500

ARV-$150,000-190,000

The intial investor dropped out for reasons I am unsure of. Second investor dropped out for reasons I am unsure of. Third investor is willing to Take the deal but wants a reduction in price. 

Now, here is the problem. We have been watching this house for months. We know the house. When the price was right we took the "buy it now" and they went to see it. We have all seen this house many times so I did not go. However, this time the front window was broken and laying on the floor, a large portion of the front of the house is laying on the ground. The studs and insulation are hanging out. Massive water damage everywhere. 

I am sure this is why the intial 1 and 2 investor fell out. I hadn't gone with them to see it. This new damage to the house is very, very recent. The plaster and stucco are still laying on the ground in the driveway.  I don't think that hubzu or the bank know about this damage. 

Will they negotiate if I bring this information to there attention?

Well, sloppy on your part. How does water damage relate to parts of the wall laying in the driveway?  Water line leak in second floor?

No, there is no water going into the house. It looks like it just fell off or someone pulled it off. It's hard to explain. This house hasn't been lived in for many years. 

You said "massive water damage everywhere".

The broken window is laying on the living room floor. It's no longer attached to the house. Water has also come in where the front of the house is broken off. It has rained everyday for the past few weeks and I am in SW Florida with torential down pours daily. (Much like you I would assume considering you are also here in Florida)

My question is - Does hubzu negotiate or will they present this information to the bank if I request it?

It will depend if the damage occurred After your bid, or before.  To get any traction you'll need to show it occurred After your bid, which it doesn't appear to be.  Probably the reason for the buy it now price that seemed"cheap".

I hope this works for the best call the agent to see if he or she has a way with the owners. 

Research to see if it had been listed anywhere else.  

Good luck. 

In my experience with auction properties your bid is your bid and that is the amount that is due. If you did not pay the price that you bid your deposit was lost and the property was put back up. But hey you never know unless you try, good luck.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.