Posted by Tim (Atlanta) on March 28, 2000 at 07:22:17:
I didn’t say that HUD overpriced their homes. They almost always list the home fairly close to the fair market value. But I don’t buy homes at fair market value. You can’t make money doing that.
Do a little research here. Watch the HUD site for a few weeks. Get the listing, and go look at a few properties you might be interested in. Then wait and see what bids are submitted on them. The site is set up so that you can see all bids that were submitted as well as the winning bid. I think that you will find that a majority of properties will go at or above the listed price.
Now understand that I am talking about the Atlanta market. More specifically Cobb county. I haven’t expanded my holdings outside my local area because I don’t feel the need to. I have more than enough deals close to home. If you want to see a rediculous market, look at the HUD listings intown (like Decatur). I have seen a run-down shack go for 20% over list just because it was intown.
Help with vacant “HUD” homes - Posted by Scott (ATL)
Posted by Scott (ATL) on March 24, 2000 at 11:00:00:
I thought I saw an article or two a year or so ago on the site about HUD homes but I can’t find anything now. Anyway, we are mainly focusing on rehabbing at the moment and just closed on our first full job. We had to pay out a lot to our private investor and RE Agent (They brought a buyer to us in 1 month!) but we still made a very nice profit for our company. I hope I have even more like this!
Back to my question…I spotted two vacant homes that had HUD signs in the yard. One was winterized in November so it has been sitting around for a while. The HUD sign says to call your Real Estate professional but I was curious what this means. Can we buy it from HUD or does it have to remain under the HUD umbrella? Since I don’t know much about HUD I may be asking the wrong question.
In short, I want to buy the homes, rehab them then sell them. Can I do this with a HUD home that doesn’t seem to be “listed”?
Posted by Chad (WI) on March 27, 2000 at 20:51:44:
Scott,
I recently bought a HUD house, and also had to make an offer through a realtor. I did most of my research at www.firstpreston.com for HUD homes in Wisconsin. You can find the “broad listing broker”(the one who has the listing)on the web site, but you can make your offer through any realtor who is set up with HUD.
For the record, I got an excellent deal on the house.
I have watched this list for most of the last 3 years. The bargains on the HUD list are few and far between. In the years that I have used the HUD list, I have bid on two properties, buying one. It is just not a very good way to find deals. Most of the properties on the list go to owner-occupants, for over listed price. You may have better luck, but you may be wasting your time as well.
Re: Help with vacant “HUD” homes - Posted by Hugh James
Posted by Hugh James on March 25, 2000 at 09:56:25:
Assume you are in Atlanta. HUD now uses what they call M&Ms virtually nationwide. (M&M=management & marketing…Oh, those clever bureaucrats.) In short, they’ve privatized it. Atlanta was handled by InTown Management until they went broke last September. You have to do some research to find out who’s in charge now. Most of them are also cross listing to your local MLS.
If the property isn’t actually listed yet, the reason for that could be that HUD doesn’t have clear title yet due to right of redemption, etc. Also, they don’t want to flood the market with these houses. In our area non-profits get first crack anyway. In our area (Chicago) they tell us straight up not to call about properties with their sign in the window but not listed.
Is it true what you said in your email? That most HUD homes are overpriced? I found that statement to be surprising because HUD is stuck with those props. and is trying to rid them, correct? Why then would they over price them?