I'm thinking of putting an offer in on a home that was listed as a hud home but is now available to investors ... So my question is basically this is it absurd to consider putting in an offer at 50 to 60% below asking price... It would be a cash offer of course if that makes any difference... Any insight would be welcomed and thanks .
if the property has been on the market less than 90 days you have no shot. After 90 days , lower offers will be considered but you are still probably too
I have three experiences with this. One direct and two second hand deals through friends. First deal, a friend of mine put an offer in for 66k on a HUD foreclosure that they were asking 85k. The selling agent quickly countered and said that wasn't enough with a bottom price which was 80k as I remember it. This property wasn't getting a ton of attention because it was next to a railroad track. He ended up buying it close to their counter.
Second deal, was a HUD deal that I bought as a live in flip. It was listed for 78k. Someone put in an offer for 80k all cash I found out later, but I ran the numbers and put in an offer for 90k and purchased the house. I knew quite a few of the team listing the deal, fielding offers, so I knew I was going to make a solid offer to win the bid and the ARV was 190,000.
The third deal, I put in a low offer, I wasn't accepted. The house seemed to have been delisted. I might offer again. It needs a lot of work, is in a c/b area, and I'm not willing to come up from a gutter low offer.
Even with HUD, I think there is some difference on what kind of offer will get it done depending on the property, location, listing agent, and traffic the house attracts from buyers. Run your numbers and make an offer that you feel comfortable with. It doesn't hurt or cost anything to make an offer.
There are threads on BP that go into a lot of detail by trying to reserve engineering the HUD acceptance criteria. I suggest searching for those threads.