I am looking at bidding on a HUD home as my primary residence. I’ll be bidding as an owner occupant. I don’t particularly like it for various reasons but the price is good - needs 30k worth of work and will have about that again in equity after renovations. It’ll be a rental for me after I fulfill the requirement to live there. It would be a great rental, I just don’t want to live there.
So I want to bid aggressively and plan on getting it if nobody else bids. It’s a small town and not a lot of HUD homes. I don’t think any other owner occupants can get financing on this anyway on account of the condition.
So, do they have a formula for acceptance? I want to get it if I’m the only bidder, but not otherwise. I was considering 90% of asking price.
thats the million dollar question we all wish we knew the answer to,how much to bid/offer,
figure out what number will work for you, what number you would be happy to get the house at, but don’t want to go over, and offer that,if you get it you should be happy, if you don’t you know it went for more than you were comfortable offering.
Maybe you live in an area small enough that there is a shortage of reo’s,in any major metropolitan area the streets are full of them,some great deals, some not very good deals,
I would say you’ll get it for 90% of the asking price. I’ve bid on a few HUD homes here. It’s an automated thing. Our Realtor has to enter the bid online. The bids aren’t generally accepted unless they’re 90% of the list price. If I don’t feel like paying that much, I have to wait for them to bring the price down. The nice thing is they seem to do that on those homes. I did see one here that had a big red flag on the ad “ALL OFFERS WILL BE CONSIDERED.”