Real Estate Agent · Brandenburg, KY · Member since 2015 · 277 posts · 68 votes
I've read for the past hour regarding this and learned a wealth of info.
I will be offering the asking price. Owner occupant bidding ends at 1159pm ct on 6/6.
My buyers agent is not real experienced (although her father is, she works for her father). So do I have a better chance of having this offer accepted if we submit at 1201am ct on 6/7? I read a lot of discussion on the timing of these deals. What else do I need to know going in?
Anything else to consider as the property is a great distance away from me, although I have family close to the property to handle anything I may need?
I've read for the past hour regarding this and learned a wealth of info.
I will be offering the asking price. Owner occupant bidding ends at 1159pm ct on 6/6.
My buyers agent is not real experienced (although her father is, she works for her father). So do I have a better chance of having this offer accepted if we submit at 1201am ct on 6/7? I read a lot of discussion on the timing of these deals. What else do I need to know going in?
Anything else to consider as the property is a great distance away from me, although I have family close to the property to handle anything I may need?
Thanks in advance!
I am assuming that you are bidding as an investor ? Some here have indicated that they bid at 12:01 and had their bid reviewed the same day but I have not experience any benefit.
Keep in mind that the highest net to HUD wins so try to make your net as attractive as possible keeping in mind that the numbers need to work. If the property is in Texas, there are 3 different Asset Managers that handle HUD homes. There are a few different nuances between them but no major differences
Are you and your agent in the same town ? If not it makes it a little more difficult to get the contract in within 48 hours but it is doable. If you are doing an inspection keep in mind that you pay all the costs to get the utilities and possibly the cost to de-winterize and re-winterize and will not get your earnest money back based on the inspection
Feel free to contact me if you have any questions. Good Luck !
I've read for the past hour regarding this and learned a wealth of info.
I will be offering the asking price. Owner occupant bidding ends at 1159pm ct on 6/6.
My buyers agent is not real experienced (although her father is, she works for her father). So do I have a better chance of having this offer accepted if we submit at 1201am ct on 6/7? I read a lot of discussion on the timing of these deals. What else do I need to know going in?
Anything else to consider as the property is a great distance away from me, although I have family close to the property to handle anything I may need?
Thanks in advance!
I am assuming that you are bidding as an investor ? Some here have indicated that they bid at 12:01 and had their bid reviewed the same day but I have not experience any benefit.
Keep in mind that the highest net to HUD wins so try to make your net as attractive as possible keeping in mind that the numbers need to work. If the property is in Texas, there are 3 different Asset Managers that handle HUD homes. There are a few different nuances between them but no major differences
Are you and your agent in the same town ? If not it makes it a little more difficult to get the contract in within 48 hours but it is doable. If you are doing an inspection keep in mind that you pay all the costs to get the utilities and possibly the cost to de-winterize and re-winterize and will not get your earnest money back based on the inspection
Feel free to contact me if you have any questions. Good Luck !
Thanks for the response. I'm in Korea on military assignment. The property is in Kentucky, along with my real estate agent. My wife will be in Kentucky for the next month and has a poa specifically for the purpose of acquiring property. Once complete, she returns back to Texas.
Lots of moving pieces, I know, but I'm ready to buy real estate! :)
Real Estate Agent · Willoughby, OH · Member since 2014 · 560 posts · 690 votes
11y
I am currently in contract on a hud home. I believe they review the investor bids on a daily basis IE every 24 hour period. So long as your offer is the highest within the first 24 hour of the investor period it should hold up.
As an investor, once you submit your ernest money, do not expect to get it back. The contingency period of 15 days is good for owner occupants only. Any inspections that you do prior to closing will be FYI only. If your offer is accepted you must work quick to get the contract to their office within 48 hours. It must be original black ink, no copies, faxing, or scanning... There should be attachments on the hud website with the hud provided 'appraisal'. This should give you a general idea of the condition. Although they list it as an appraisal, they no longer provide a price. It is more like an inspection. Take that inspection with a grain of salt and always assume the worst. Good luck and let us know how it goes!
Real Estate Agent · Willoughby, OH · Member since 2014 · 560 posts · 690 votes
11y
forgot to mention, you should be able to find that 'appraisal' on the hudhomestore listing webpage under addendums. They should have performed a plumbing air pressure test which will give you a little insight on if there are leaks in the system.
Investor · Atlanta, GA · Member since 2012 · 24 posts · 14 votes
11y
They are supposed to consider all HUD bids at the same time at the end of the bidding period. The bidding system used have glitch that would allow some bids to be considered essentially early with the bids between 12-1, but it was fixed a long time ago. The bidding system used reveal how many bids were submitted, but they also changed that. I've purchased over 60 HUD homes and submitted thousands of bids.
Max
Ok, that's comforting. I'm ok with losing the deal because it's worth more to the "next guy." I don't want to lose deals because of my agent. She's actually awesome, just inexperienced. I'm sure we're both learning lots right now.
Residential Real Estate Agent · Columbus, OH · Member since 2013 · 281 posts · 110 votes
11y
Just beware of losing your earnest money. You can have an inspection period but HUD expects as an investor you already know what you're doing so you can't leave the contract without losing your deposit.
Got it. I'm comfortable with the condition of the property based on our walk-through. Either way I'll be prepared to lose $500. Hopefully I'll know something Monday or Tuesday.
Thanks for the response. I'm in Korea on military assignment. The property is in Kentucky, along with my real estate agent. My wife will be in Kentucky for the next month and has a poa specifically for the purpose of acquiring property. Once complete, she returns back to Texas.
Lots of moving pieces, I know, but I'm ready to buy real estate! :)
Hi Jeremy,
I don't have any insights in to buying with HUD, but I do help organize a real estate investing meetup out here in Korea - the Seoul Real Estate Investing Meetup - you can check out my signature or profile for a link.
In a few weeks, we'll have @Chris Clothier of Memphis Invest as a speaker - we have a Q&A where you can ask our speaker any questions.
We also have a lot of service members / civilian contractors who are part of our group - maybe one of them might have some info to help?
I know it's unusual to find other US investors in Korea, so I thought I'd let you know that we exist.
Real Estate Agent · Brandenburg, KY · Member since 2015 · 277 posts · 68 votes
11y
Offer is going in tomorrow. I decided on bidding $500 over the asking price after reading threads where investors were losing over a few dollars. I have plenty of cushion.
My agent has never submitted an offer on a hud home but her father will be helping her get the offer in.
Residential Real Estate Agent · Columbus, OH · Member since 2013 · 281 posts · 110 votes
11y
The offer process is extremely easy as long as she's already registered on HUD's website. The more annoying(gratifying) part is if the bid is accepted :)
Real Estate Agent · Brandenburg, KY · Member since 2015 · 277 posts · 68 votes
11y
Yeah, I was just informed by my realtor that if our bid is accepted we will have 24 hrs to submit all required documents to execute contract. I'm across the globe, but my wife is there with a poa and we should be fine.
You have 48 hours to get the contract to the Asset Manager with original signatures only. Your agent can always call and get an extra day in most cases
I would have your agent contact the Asset Manager to verify that your POA will be acceptable to avoid any potential issues
Professional · Franklin Lakes, NJ · Member since 2015 · 4 posts · 1 vote
11y
In my experience, offer submission timing does not matter in cases when property switches from Exclusive (owner occupied) to Extended (Investor eligible) status. However, I would not submit a full price offer on a property unless you've got to have it. If you bid against yourself why pay more than you have to.
In my experience, HUD (property management company working for them) is very reasonable and willing to accommodate most of your reasonable requests. I got earnest money returned twice as i explained to them that I thought going in that property would require one type of rehab while my contractor pointed out to me that foundation (or structure or termite damage) had issues which would need completely different money commitment.
I will have to say there are several HUD listing brokers as well as many like myself that have purchased 200+ HUD homes over the years that have never heard of HUD returning Earnest Money to an investor due to the rehab not being what was expected
As far as offering price, if the numbers work the numbers work. Occasionally, a HUD is underpriced and the numbers work at or above the asking price. In some areas of the country most sell above the asking price
Real Estate Agent · Brandenburg, KY · Member since 2015 · 277 posts · 68 votes
11y
The property is no longer listed on the hud website and is pending according to another source. I'm assuming they accepted another offer. My RE agent didn't hear anything.
Is it normal for hud or the asset manager to ONLY contact the person who's offer was accepted?
The bid submission deadline for all properties I see listed on hud.gov in the extended period have a deadline of midnight, daily. Do offers have to be resubmitted daily?
The property is no longer listed on the hud website and is pending according to another source. I'm assuming they accepted another offer. My RE agent didn't hear anything.
Is it normal for hud or the asset manager to ONLY contact the person who's offer was accepted?
The bid submission deadline for all properties I see listed on hud.gov in the extended period have a deadline of midnight, daily. Do offers have to be resubmitted daily?
Your agent can log in to their Hudhomestore account and if another bid was accepted the status will be OBS (Other Bid Selected).
Your agent will not be contacted if your bid is not accepted and during the extendedperiod bids are reviewed daily M-F
Investor · Asheville, NC · Member since 2011 · 833 posts · 499 votes
11y
@Jeremy Jackson, good luck with this one, you've received some great advice. My experience with HUD homes is that the bidding is pretty competitive once the owner-occupant window is up. Of the two HUD properties I've purchased, I've gone in over asking. Good luck with this one! Let us know how it goes.
@Daniel Ryu that is awesome! Way to organize an amazing international group and bring in some awesome (virtual) speakers, very cool.