Specialist · Little Rock, AR · Member since 2018 · 148 posts · 71 votes
I have recently put in an offer on a HUD property and my Realtor just let me know that there are multiple offers on the table and they are asking me if i want to change my offer, leave it the same, etc. I am not experienced with this so my question would be: Do people put in offers over the asking price? How high can they go from your experience. As of right now I am over the asking price and am just curious on what your experiences were with these type of "bidding wars".
Bel Air, MD · Member since 2018 · 30 posts · 19 votes
7y
I believe that HUD works the same as a foreclosure. I have bid on a few foreclosures. Usually the agent says there are multiple offers and give you til 1pm (or whatever stated time)on a certain date to put your highest and best offer. I guess it all depends on the property and how the #'s work and how much you want the property. I am in a live in flip that was a foreclosure and their were multiple offers all "at least asking price" after 24 hours on the market. We ending up putting an offer of 15k over asking. Great area, and still a great deal. We got the house. The bad thing is you dont know if the next higher offer was $500 or 14,500 over asking. No bidding war. They just ask you for your absolute best offer and pick the best one. At least this is how it works in my area of MD. Good luck!
Happens all the time. It usually means someone is overpaying or they have a way to repair it cheaper than you. Not all buyers are created equal.
I've found it's rare to find a HUD house that makes sense, especially if there's a bidding war scenario. HUD also tends to give owner occupants preference.
But if all the bids are from investors is by deposit or quick closing. And also to go through HUDs title company. One strategy I used to use as a Realtor-investor buying Bank Owned property would be to forego the Realtor's commission to bid more competitively. I've also made my deposit higher and all cash as an incentive.
Just to confirm that this is a HUD Home listed at hudhomestore.com and not a reverse mortgage that sometimes gets called a HUD but is a very different process
If this is a HUD, there is no way your agent or the listing agent knows the number or amount of the offers and there is absolutely no highest and best with HUD. Either the offer meets the minimum acceptable offer or it doesn't. If the offer was not acceptable, your agent would receive a generic counter (that is not really a counter) with the acceptable number
Specialist · Little Rock, AR · Member since 2018 · 148 posts · 71 votes
7y
This home is through homepath.com. This may have been useful information for me to put in the original post. I do believe it is a reverse mortage. It says it has to be comply with HUD Guidelines 24 CRF 206.125
Yes it is a reverse mortgage which means it has to sell for list price for the first 120 days which doesn't seem to be an issue here. The listing agent is involved and a highest and best is possible. I bid my number and stick to it
Difficult to get a conventional,fha and va loans on these properties as no repairs are allowed and no closing costs are paid