Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
Just to let everyone know, yesterday I got a counter-offer on a HUD home with a net-to-HUD at 60% of list. This one had been on the market, then under contract, now back on the market again. My guess is that it went under contract to some naive young o-o who either couldn't get their financing approved, or couldn't deal with the amount of repairs that showed up in the home inspection report (or their bank couldn't deal with the repairs). I had previously made an offer on it, so HUD notified me when it came back on the market. Not too sure if I will jump on it though since I have two rehabs on the market to sell, and have another REO that I have been offering on.
Real Estate Agent · Cleveland, AL · Member since 2010 · 22 posts · 1 vote
13y
Brian, just got a email like you did the other day. I had had placed a bid on a property for an investor client. Got a email back that price had been reduced and asked me to rebid on the property. I have been doing HUD Homes for just over two years, I have never seen this happen.
Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
13y
I have never seen more than 70% of list accepted. I have never seen a counter below 80% of current list. I am in a market where 90% of HUDs sell in the first two weeks.
Are you saying 60% off of current list, or 60% off of original list? How long has it been actively on the market (days it has been active and not under contract).
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
13y
@mark ferguson - The counter offer is at 60% of the current list price (as listed on hudhomestore.com). That's 60% net to HUD. It would take and offer of about 64% of list to get it. I don't know the days on market cause it's about 80 miles away from me and not in my MLS.
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
13y
"Real Estate Is Local". We've all heard that saying and it's true. This crap about multiple offers and bidding wars isn't happening in my area. I have two finished rehabs on the market at great prices and can't give them away.
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
13y
We have a local classifieds website that is similar to craiglist, and I have them on there. We've already done price reductions on one of them (the other has only been on the market about a month). I agree with you about the price thing in general, but I'm confident in these prices (I'm also a Realtor and have done extensive price comparisons on these two properties). Our market is just not come back to normal yet.
Investor · Florence, SC · Member since 2014 · 16 posts · 5 votes
12y
The last 2 bids I have made on HUD homes 80% was the magic number. I have not been able to break that barrier. 80% is the formula I was given from a very experience investor on HUD houses. My experience is that is where they are sticking. At least in this market.
Investor · Florence, SC · Member since 2014 · 16 posts · 5 votes
12y
Bryan, have you posted on Facebook. There is a "For Sale" group set up for most communities. If there is not one for your community it's not hard to start one. I have posted several homes and have gotten lots of attention. However I have not made a sale from a Facebook post yet... Who know maybe the next one.
Investor · Florence, SC · Member since 2014 · 16 posts · 5 votes
12y
Paul , the last one I bought All I remember is it had been under contract and came back on the market at a reduced price. The area is decent and the house was in move in condition even thought I put about $6000 in upgrades. I first saw it on the market at $69900 but I was not interested at that price. When I saw price drop to 60 I offered 46 and we agreed at 48000 after 2 rounds of offers. I have a contract for 89000. The other I really don't remember the details as to how long on the market. I will tell you I got the house on a 80% offer for 53000. The home is about 2500 sq ft and with 50 in upgrades was sold for 174000. But this is not a typical deal... For me anyway.
Investor · Madison, AL · Member since 2013 · 93 posts · 28 votes
12y
We have 3 asset managers in our area and each are a little different. It is mostly 12-15% off list net to HUD during the early stages of listing. After a number of days, HUD will reduce the price, usually about 10%. They usually increase the discount they will take to 20%. Then if still unsold, they will reduce another 10% and discount usually goes to 30%. Hardly any lasts longer that the 2nd price drop. These are not exact numbers, just my experience.