The house is nice, it has minor problems, mostly cosmetic and probably not adding up more than 2 thousand dollars. The neighborhood is nice. The home is 3 years old.
Do you think that is to low of a bid, I am telling my agent of my bid tomorrow.
2007-05-21 15:04:43 · 13 answers · asked by I'mdabess 2 in Business & Finance ➔ Renting & Real Estate
Your Realtor should research the market and find comparables to help you determine if this is a low offer. In situations when the buyer really wants the property, it is recommended to offer above the list price. The property is only worth what you are willing to pay.
2007-05-26 02:54:27 · answer #1 · answered by scottsnyderhomes 1 · 0⤊ 0⤋
HUD will pay the selling broker up to 5% of the selling price and some broker are really good at selling HUD homes. But chances of you winning the bid is slim unless you are paying cash (because most bank do not lend money for HUD home and those who does charge higher interest rate for investment property and typically small loan amount) and bid several houses weekly hoping to win one or two. Also, HUD sells to homeowner first and than investors. You should find a realtor that would advice you on how to buy HUD home and stick with the same realtor. If they try to steer you elsewhere, just move on. Also, be reasonable when bidding so your bid will be above the minimum amount required by HUD. Always remember that in real estates investment, you make money when you buy not when you sell. If you over paid, you already lost.
2016-05-19 04:54:30 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I have had experince bidding on the huds, most of the time they take bids for 24 hrs and if the desired amout is not reached the bidding will start again the next day. If you go on the hud website it will give you a list of repairs and the estimate of the costs. As a broker I think you offer is strong if the property has been on the market a while. Be sure you have your inspection done, and in the event you need some thing fixed, tell them the finance company wont lend without the repair. This is really important when it comes to termite damage.
2007-05-21 15:16:44 · answer #3 · answered by timothy y 2 · 0⤊ 0⤋
If the property has been in the market before and now re-listed by HUD, or if it's not in a desirable are then you should underbid. Remember that every body has access to the HUD list and every broker I know has somebody going to bid on properties. If the property is nice find out the real market value for the property after expenses and bid accordingly but you might want to overbid. Also you can go to the HUD website and find bid statistics and you can look at prior bids in the area.
2007-05-21 15:11:57 · answer #4 · answered by Henry Sosa 3 · 1⤊ 0⤋
No!
I hope you've done your homework! I hope you have 5 or 6 comparable homes that have sold recently within 6 blocks! You need to know the selling price of the other houses, comparing the square feet, number of bedrooms, number of cars you can put in the garage, and condition! You don't want to bid 80K in a 50K-60K neighborhood! You also would like to know what the seller paid for the house, and when! That is all public knowledge at your county assessor's office! If you put in a lowball offer, like $50,000, maybe the seller will even be anxious, and come back with a counter-offer of $60,000 or $65,000. You can always go up! You can never come down once that offer is made! Most important, DO YOUR HOMEWORK! You need to know what that place will be worth after you've put your "sweat equity" in to it! You need to know what taxes liens, and encumbrances are against it! Good Luck!
2007-05-21 15:43:51 · answer #5 · answered by bemeup 2 · 1⤊ 0⤋
A few minor problems? Mostly cosmetic? Hope you looked closely. A good rule of thumb for bidding is 2/3 to 3/4 of appraised. Especially if there was not a complete inspection done.
2007-05-21 15:18:13 · answer #6 · answered by ? 5 · 0⤊ 0⤋
Most of the time HUD wants a buyer that they know isn't just going to back out on the loan and default as the same person does. From what I know and what I've read, HUD doesn't always choose the person with the highest bid. You need to put up a bit of earnest cash. (Which in most cases doesn't have to be a lot, just enough to show that you're a serious buyer.)
2007-05-21 15:17:13 · answer #7 · answered by becky m 4 · 0⤊ 0⤋
Bid what you feel it is worth and can afford. Are you looking to live there or flip it? Bid whatever makes sense financially. Do not go to war just to win the bid.
I see that happen all the time. Trust me, the high from winning only last a second. There is always a better deal. If it is meant to be ( and better yet if it makes financial sense) you will win.
Bid with your brain, not your emotion.
2007-05-21 15:18:32 · answer #8 · answered by Peter P 2 · 0⤊ 0⤋
There are so many variables. Ask your Realtor. Make sure that you are working with an agent you feel is looking out for your interests. He/she will know the local market and laws governing the transaction better than someone responding to your question on this forum. Good luck.
2007-05-28 09:47:23 · answer #9 · answered by Steve W 1 · 0⤊ 0⤋
Does it fit your financial profile? Are you going to try and flip it in the worst matket in 8 years? Do you intend to live in it? Do you intend to rent it out? Just by the question i can tell you are not sure you should even buy a house. Go for it, but hold it long term and read some books on real estate.
2007-05-29 13:15:19 · answer #10 · answered by renzbenton 3 · 0⤊ 0⤋