Wholesaler · Cottage Grove, MN · Member since 2013 · 87 posts · 14 votes
We recently bid on a HUD property. They initiated the counter offer process on the property, but the counter net is more than we feel we should go on this one. Has anyone had any luck getting a bid accepted that is lower than the minimum acceptable net to HUD? For example, if no one else bids on the property or it stays on the market longer than the bid window and they do not accept an offer?
We have purchased many hud properties including numerous ones where they "countered" and we did not accept the "minimum net to hud" sometimes a week to a month later they accepted the last offer we had submitted.
We have purchased many hud properties including numerous ones where they "countered" and we did not accept the "minimum net to hud" sometimes a week to a month later they accepted the last offer we had submitted.
Thanks for the insight guys. I think we will ride this one out and see what happens. My fingers are crossed and I will let you know how it turns out. Thanks again.
Hey everyone, just an update from today. We stood strong and HUD accepted our offer without any other bids coming in. I think that if they would have lowered their list price by even $10,000 they would have had some action on it, but they didn't. It was on the market for 101 days. Thanks for your guidance because without it we may have bid too high. We ended up getting it for $45,000 less than their list price. @Andy Chu@Dell Schlabach@Theresa Younce
Congratulations @Matt Taschner the wait can be a bit of nervous anticipitation, but its sure nice when the come back and accept your price, especially when you could have gone higher.
Can you give us the details,
What was list price
What did you offer
What was their minimum to hud counter
What did they accept, I assume this is same as second answer
How long after the "countered" did they come back and accept your offer?
Yes, I was definitely nervous thinking that it would take a long time to see a response. To my surprise it only took them 4 days to approve the offer. The original list price was $197,000. We came in initially at $145,000 which they had rejected. We made a 2nd offer 2 days later at $150,000 and with that they countered at $161,800 net to HUD. Looking back and seeing that they came back so quickly we probably could have stayed at that number, but I did raise the new offer to $152,000 net to HUD. Today they accepted the offer.
There is a comp in the area that mirrors this property and sold in just over a month for $237,000. The only difference is that the sold property was not updated. Don't get me wrong it was in nice shape, just outdated. By the time we are done we should have roughly $25,000 into the rehab. I would estimate the ARV @ $230,000 on the low side, at least that is where we will list it with hopes that it will move as quickly as some of the comps have recently.
Hey everyone, just an update on this one. We finished the rehab and our agent, @Elyse Corcoran was able to find a buyer prior to list. We were going to list at $229000. We accepted a pre list offer of $236000.00 with us paying the closing and are scheduled to close mid March. Total reno cost came in at 23500.00. On to the next one. Thanks again everyone for your input. @Andy Chu
Aprox 175k? purchase and rehab, sell 236k, with seller contributions, holding closing and selling costs ... Looks like you will have a nice profit spread!!
Thanks @NA Jones I did sub out most of the work, the hardwood floors, tiling the bathrooms, carpet, granite. Also some plumbing repairs were needed but nothing major. We basically handled the appliances when the floors were done, removal of wall paper (I hope I never see any ever again, lol) repaired the walls, paint, hardware, installed new stairs and applied poly. On our last flip my partner and I did most of the work and it added up to a lot of man hours. I would have to say my wife is much happier with me on this one being home on most nights and weekends.
@Matt Taschner Just ride it out and stick to your numbers. Like others have mentioned, they will come back to you eventually if they can't sell for the price they are looking to move it for.
I also like to see the before and after pics that people are willing to share. I think BP is a great place to get ideas for future flips and see what has worked for others.
Thanks @Brian Ortins our agent has been great to work with, she definitely takes the extra steps needed to get them sold. She even went so far as to stage it for us. I haven't worked with another agent that has really gone the extra mile as she has. I guess if that is her way to get out of holding an open house I will take it, LOL.
As an agent, I love it when I sell a property prior to holding the first open house. It has worked out that way when the seller has allowed me to design and rehab. They are not always happy about spending money, but thank me when I get a higher selling price than what they expected.