Updated about 12 years ago on . Most recent reply
Does HUD track your bidding history?
My realtor, who has tons of HUD, foreclosure, distressed property experience, has told me several times that HUD tracks your offers on various properties. They review how close/competitive your bid are to the HUD asking price. They take this in to consideration when reviewing your offer
For instance, there's a HUD property I'm interested in that is being sold for 17k . The property is in bad shape and would require a total Gut rehab for about 25k. ARV in the area is about 40-50k. I would like to put an offer in for 8k, but he claims it would count negatively against me. Is any of what he's saying true?
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The listing agent doesn't have any say in the asking price or any negotiated price. Its a computer formula.
The number that is the most meaningful to HUD is "net to HUD" This year we have had acceptances for percentages much lower than 5% off. There are factors outside of HUD that should go into your bid consideration, and your agent should know those factors and advise you accordingly. Some factors include, how much competition there will be? how far below market is the asking price? how much work is required? How long has the property been on the market? and what is your end game, rent, occupy, or flip? All those will determine your bid.
If you're just looking for low ball offers, look at the properties that are listed for 100+ days or more. I recently saw one HUD that had been listed for over 200+ days.