What's the lowest percentage of the asking price you've seen HUD accept? I'm looking at a flip property but would need to buy it for about 50% of the asking price to make it work.
They're asking $35,000
My numbers would look like this:
Purchase price = $17,350
Repairs = $15,000
Sale Price based on comps = $55,000
Commission = $1,650
Seller Concessions = $1,000
Profit = $20,000
Any thoughts on the likelihood of getting a 50% offer accepted?
Investor · Roswell, GA · Member since 2008 · 231 posts · 104 votes
12y
I keep track of all the properties that enter the Extended phase in my target buying area. I can tell you that the lowest % of List Price that has been accepted in 2013 in my area is 56.6%. Here were the stats of that property:
Appraisal = $107,000
List Price = $85,600
Winning Bid = $48,410 (net to HUD)
DOM = 117 days (from Appraisal Date)
Only 9 out of 327 properties sold for less than 70% of List Price.
That's my thought. There's only one way to find out if they'll take it. I've never purchased a HUD property before and was curious about any potential patterns or rules of thumb regarding accepted offers.
Investor · Roswell, GA · Member since 2008 · 231 posts · 104 votes
12y
I keep track of all the properties that enter the Extended phase in my target buying area. I can tell you that the lowest % of List Price that has been accepted in 2013 in my area is 56.6%. Here were the stats of that property:
Appraisal = $107,000
List Price = $85,600
Winning Bid = $48,410 (net to HUD)
DOM = 117 days (from Appraisal Date)
Only 9 out of 327 properties sold for less than 70% of List Price.
Commercial Real Estate Broker · Winston Salem, NC · Member since 2013 · 38 posts · 9 votes
12y
I advise my buyers to offer 70%, 80% or 88% net of the sales price after commissions. That is what I see the thresholds as in my area, but your results may differ.