What’s the lowest price someone has purchased a HUD home for?

9 Replies

Any personal success stories low balling HUD? If a house is listed at $150, are they firm or is there flex in the price?

Tell me your personal best win!!! Cheers

Not sure about "HUD" but I have picked up houses from sheriff sales / foreclosure auctions at $70k before. This is in Kenosha, WI (center point between Milwaukee and Chicago)

Purchased at $70k put about $20k - $25k into it, and sold for $125k

Process took me about 4 months at that time from purchase to sale.

The first time I got into residential real estate I did 3 homes in my first year. I sub contracted all the work and never really swung a hammer. I just supervised the work, sourced all the material and labor, and paid an agent to list and sell the homes.

With the foreclosures commencing again, I am thinking of getting back into this as my "trial" the first time actually went pretty well.

A direct answer to your question:

Many times the bank will take a much lower amount that the plaintiff owes on a house. For example if someone owes $150k the bank may have the starting bid start out at $100k

Sometimes others will not even bid, and you can pick things up for cheap!

Another strategy for me has been if you know there are 1 or 2 serious bidders at the in person auction, tell them you will give them $1,000 not to bid on that house. Do that with a few people and you just saved yourself a bidding war that might have ended up going up $10k+

There is an entire sub-thread on HUD bidding. The bottom line is they wont accept lowball bids, they will just wait a set period of time, lower the asking and then wait longer, lower the bid etc. The longer the DOM, the lower an offer they will accept. It's very algorithmic and does not support just lowballing, esp with low DOM. Check out below to see some prior discussions that are still somewhat relevant with regards to thresholds.

https://www.biggerpockets.com/...

I have purchased north of 700 HUD homes. Best ever purchase is less than 10% of the original listing price and scores of less than 20%
The reality is this is not possible in most of the country and in major cities 

The best possible offer you are going to get accepted in the 1st 30-45 days on the market is 87-88% net to HUD of the list price. This is the standard for all of the US

@Greg H. has great HUD posts on here that I have learned a lot from and his one above is just another. Good info for anyone looking to purchase a HUD.

The cheapest I have ever purchased a HUD for in CT was $55k, but it was 7 years ago and the market was completely different. We put the bid in the day they made a big price drop and I think we lucked out a little bit if I remember correctly.

I've bought only one HUD home - it was listed at $55,500, sat on the market for three months, and I ended up paying $50,800 for it. I put about $8K into it before I could rent it out.

I wish I could find a few more like that...

From what I have seen they will not take much less than 90%, but will systematically drop the price, if they dont get any bites. So basically wait until they are about 10% above what you wnt to offer!

If you submit an offer on a HUD home that doesnt meet their minimum net to HUD they should send a "counter offer" email that tells you what the minimum net to HUD needs to be.