I was told by a Realtor who is listing a HUD home for sale that the home price is firm and that it is not negotiable. The appraisal was done by hud and was 60,000 and is being sold for 50,000 and does need some repairs. After hearing the Realtor say it is not negotiable I could only keep thinking why isn’t it.I thought all prices can be negotiated, I am missing something. Thanks in advance
The HUD homes I have put offers on had to have Realtors place the offer electronically on the HUD website. The general rule of thumb was that the system would outright reject the offer unless the offer was within about 90% of the asking price. Every time HUD lowered the price, the listing was restricted to owner occupant offers for a period of a few days. After that period, it would open to investors. If you didn’t want to pay around 90% of the listing price, you just had to wait for the price to drop, wait for the owner occupant bidding period, and then hope it didn’t disappear before it opened to investors again.