HUD homes

General Real Estate Investing
1

Good morning y’all,

I hope you are having a great day. I’m new to the board and like what i see. I’m considering looking at purchasing a HUD home and wondered if anyone has had any experience at it? Would you say that 25 or 30% discount off of market value would be expected if it was in decent shape. I did see this home on the outside and the outside fence gate needs to be replaced.

Have a great day
AA

2

You might want to look for an agent that specializes in these in your area. They will be able to give you an idea at what is being accepted. It depends what is going on in the region.
For example, in CA, you could get a discount but later during the bubble you had to bid over listing price to get it.
In TX, (A VA foreclosure) the agent told me they would not accept more than a 10% discount on the list price. I tested it and submitted a 15% discount, they rejected until we were at 10%.
So, it really depends on your area as to whether you can find a deal. My own opinion is that you can get better deals with preforeclosures or don’t wanters, but when I could buy as HUD as an owner occupant and had a full-time job(without time or knowledge to look for a bettter deal), this seemed to work OK for me.

3

In my market area, HUD homes are selling between 95% and 105% of list price. Offers that are below the minimum acceptable net to HUD are ignored.

You don’t need to be an owner-occupant to buy a HUD home, although owner-occupants get first crack at any newly listed property. After the owner-occupant buyers have had a chance, then HUD opens the bidding to all purchasers (including investors)

4

The only problem with HUD is that the owner occupied bid gets considered first. I am usually doing something else when they get back to me to tell me I have the bid or not and you also have to give them a deposit in real dollars just to make an offer.

5

Thanks boys. I’m in Dallas, Texas and a 10% discount off of the market value is what they are advertising. That’s no deal at all. I will be moving into the property as an owner occupied, but refuse to pay 90% and help them out.

Have a great day!
AA

6

HUD has been taking low offers in my area (indiana). I had an offer accepted of $53,000. HUD was asking $72,000 and arv is $90,000. Needed carpet paintand upgrades…

7

Like everyone said, there are decent deals to be had depending on where you are. Stay on top of it and be prepared to submit an offer if the numbers makes sense.

Then be prepared to jump through hoops like a trained animal, cuz HUD is not exactly the fastest most efficient organization in America.

8

That’s because they’re Federal govenment! None of the Federal government is “exactly the fastest most efficient organization in America”. In their defense, the properties that I purchased from them went thru like clockwork and on the schedule that they advertised.

Keith

9

I’ve had simple closings from HUD also even though I have heard terrible things about them… LOL