HUD willing to accept lower for Owner Occupancy than Investor?
Hello BP Pros,
I am looking at a HUD property a few days ago. This property needs very minor (less than 3K work). It is considered a upper middle class neighborhood. This property's asking price is 245K (the comp is in 260K or 270K range with some minor work). I bid 80%, I got a typical 88% counter. I also put my offer as "back up considered". However, I am blown away today that I found that this property went 183K net as "O/O." I got blew away by this. How on earth my 80% never got considered?
Here is my question: Is HUD willing to accept much lower offer for buyer as O/O?
Thanks.
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#2 Real Estate Agent Contributor
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So it is outside the exclusive period? With that kind of pricing why did it not sell during exclusive? They are in the business of selling to O/O, but I'm surprised they would take that kind of pricing.
Are you sure those are the right numbers? I guess you can know for sure in 30-45 days.
Originally posted by @Bruce Lynn:So it is outside the exclusive period? With that kind of pricing why did it not sell during exclusive? They are in the business of selling to O/O, but I'm surprised they would take that kind of pricing.
Are you sure those are the right numbers? I guess you can know for sure in 30-45 days.
Hey Bruce, to be accurate, I did check it again on HUD website. The property was sold 183K net of HUD. The listing (asking) price is 245K. I bid at extended (this property is on extended for about a week). However, according to HUD records, this one seems to bid as O/O, but offer was accepted two weeks later (during extended period). I am blown away by this. If I know this can be sold as 183K, I will leverage hard money for this deal, because this one can easily sold for 265 or even 270K (last transaction is in 2006 for 260K, so I believe current price is supporting 265 to 270K at least).
For another property in a rural community (the property sold for nearly 65% of asking as O/O), I bid repeatedly at various prices, but constantly got a 88% of asking counter.
I do not know do I miss something on this? Could someone enlighten me on this?
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#2 Real Estate Agent Contributor
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Where does it show the sales price? Years ago it used to show all the bids, but I thought for the past several years, it did not show the winning bid....but I'm no expert on this. How do we see what the winning bid was, other than from MLS once it closes. Does HUDHomeStore show the accepted price? Also strange isn't it if they had accepted an offer, why did they counter yours?....but then again we're talking about making sense with the government or government contractors...so tough to know how they operate or what their strategy is. Will be interested to see the comments here. We just don't have many HUDs around my area any more so haven't heard or experienced any stories lately like this.
Originally posted by @Bruce Lynn:Where does it show the sales price? Years ago it used to show all the bids, but I thought for the past several years, it did not show the winning bid....but I'm no expert on this. How do we see what the winning bid was, other than from MLS once it closes. Does HUDHomeStore show the accepted price? Also strange isn't it if they had accepted an offer, why did they counter yours?....but then again we're talking about making sense with the government or government contractors...so tough to know how they operate or what their strategy is. Will be interested to see the comments here. We just don't have many HUDs around my area any more so haven't heard or experienced any stories lately like this.
For the first one, 245K is their initial listing price. 183K is on "bid results" section of HUDhomestore.com. For the second one (or any one I bid), I always always get a 88% counter (or around) regardless how much I bid. However, the second one got accepted at 65% net to HUD. If they can accept 65%, I have zero problem bid at 70%.
Bruce, it is making sense for your area (Dallas) that bid may go above asking. However, I am in shock that the first one can be accepted at 183K. It will be a great flipping deal even at 200K. I do not understand how on earth HUD could do something like this.
@Maurice George
I've heard of things like this happening when people are bidding for govt contracts. They'll end up going with a second or third place bid for one reason or another.
The only thing that can be done is to try to figure out why that lower bid beat you out.
@Bruce Lynn To see the accepted bid amounts for HUDs go to the hudhomestore.com home page and at the top click the link that says “bid results”
