HUD is a major pain in the butt, what did you expect, it’s a government agency. Around here they set an unrealistic price, then every month or so they lower it by 10%. I just keep an eye on their web page when they have something interesting, & if it gets low enough I make an offer. I used to put in offers of what I thought a property was worth right at the start. The last house I did that on they rejected my offer, so I said the heck with 'em. Five months later I checked back, they had lowered the price, & I bought the house for 20% less than my origional offer. Don’t spend a lot of time trying to get them to do business your way, decide on a price, & make an offer when their price is close to yours.
Posted by kevin Wahlert on January 13, 2003 at 11:02:50:
Does any one have any advice about buying HUD properties?
I have heard that in the bidding they are looking for 87% of the asking price. I know that they usually get fair market value for their homes, but can you get them cheaper?
Posted by Jennifer on January 15, 2003 at 22:46:17:
I agree- HUD in my area rarely has deals as well. They almost always sell at asking price or above. There is also a list of the way they entertain offers and offers must be made daily to be considered. Can be a pain. They will hold on to a property for a while as well to get their price.
In my area HUD sells for a 15% to 0% discount off list. But be very careful with all the investors now they tend to bid the prices to high and I rarely find real bargins with HUD. better off finding sellers on your own and dealing directly with the seller than through HUD.
HUDs in my area are a joke to deal with, company handling them is called Golden Feather, and they are completely clueless about this marketplace IMHO. They get an appraisal (which I believe half the time the appraisers don’t even go into the properties) and then try to sell the houses for their appraised price… regardless, they usually very distressed condition. In my market, they won’t sell, unless in a very upper middle or solidly upper class neighborhood for anywhere near the appraised price.
So HUD(GoldenFeather) turns down offer after offer to buy the property realistically, and generally winds up selling it 6 or 12 months later for far less than offers it had already had on the property.
Your market may be different, but in my market, HUD particularly on distressed properties, generally isn’t worth the agrivation or headache.