Note to seller from buyer....good idea?

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Ryan Murdock · Answer

@Matt Tobler In my experience explanations for an offer go a long way when you are dealing with real human beings as sellers - Owner occupants, mom and pop landlords, estate reps etc. Matter-of-factly showing them why you can only pay a certain amount can really help take the sting out of what will seem to them like a low offer. Be gentle but direct - avoid the "your place sucks and here's why..." approach.

HUD and REO banks don't care why you offer what you do, they are only looking at their numbers and have a certain formula they need to follow, usually starting with the appraisal or BPO they had done on the property. For a variety of reasons they have to list within a certain % of that value and can only accept offers that come within a certain % of that list price. They can and usually will reduce the list price and acceptance criteria but only according to the parameters of whatever schedule they are following. Know your offer, submit it, and be prepared to wait it out (or lose the sale to another buyer) if necessary. No frills needed.

Casity Kao · Answer

@Matt Tobler

HUD does not care why you are offering your price, all they care about it the bottom line.  I have offered 2,000 all cash than a buyer that was offering with bank financing that I knew that would not get approved and they still did not accept.  Basement was flooded and they still accepted it.  The only time that works is with a homeowner wanting to sell to a family.  Nobody really cares if the investor makes money or not that is buying the home.

Greg H. · Answer

An explanation letter tends only to be effective when the process is personal

The HUD buying process is anything but personal. All bids are place online with the only consideration being the net to HUD. There is not even a process to attach any documentation during the bid process. Additionally, the listing agent is not part of the process

Do a search on BP for HuD as myself and others have many posts outlining the process and likelihood of a bid being accepted

Brian Pulaski · Answer

@Matt Tobler is the intent to show them that your $30-40k less offer will allow you to fix and sell to make a $30-40k profit? I don't think showing anyone, bank or otherwise  that you want to reduce the price to get larger profits would have them want to sell to you. I wouldn't hold off on spelling out why you want it cheap.

Note to seller from buyer....good idea?

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