HUD Bid in California
I am about to place a bid on a HUD property. The agent I am working with is saying I will need to bid about 117% of asking price to win the bid. Is it common to have to bid this high? From what I read 88% of ASKING price usually wins the bid. The asking price currently is 72% of the appox(based on surrounding houses) ARV. Bidding at 117% would make this 85% of the ARV. I would be living in the house for the first year while fixing it up so the bid would for owner -occupy.
I find this questionably worth it since the place does need complete remodeling. New floors all around, kitchen, 2 bathroom remodels, full interior paint, and some minor repairs.
Is this a no brainer 'dont do it' or is 85% of the ARV for a fixer HUD home an average deal?