Hud Bid Counter

[Meagan Travis]

Hi All,

I placed a bid on a HUD home yesterday that has been listed for 32 days (list price has not been reduced yet) at 82% of the listing price. HUD countered my offer today at exactly 88% of the list price (textbook from what I have read on the BP Forums). My question now is can I offer lower than their counter? If so, what is a reasonable amount to come up? Should I bid now or should I wait to see if the price will drop? Ideally I would like to get the home for around 82-83% of the list price based on my analysis of the market but I could go up to 85%. This is my first time chasing a HUD home so I appreciate any advice. I am in the Texas market.

[Greg H.]

HUD had a transition in Asset Managers last month (Although the names of the companies changed the personnel remained the same but the Southwest region has gone form 3 to 2 asset managers with one company Sage getting the bulk of the listings

Saying that , it also appears that the pattern of accepting bids has changed.  88% still seems to be the counter range for most bids. Price reductions used to be 10% but now I am seeing 6% .  I have not received bids that I customarily received in the past based on days on the market.  

I have purchased several hundred over the last 20years or so and there always is a new learning curve with a change in Asset Managers. Keep in mind, HUDs counter is not a real counter but more of an invitation to re-bid. Based on the small sample during the last month, it appears unlikely that a lower number will be accepted.