Anyone seeing any changes in HUDs pricing and flexibility now that the market is going south and the the inventory levels are way up? I ask because I am looking at a house that’s next door to me that’s been for vacant since before I moved in last July. The first time I looked at the price it was probably about mid winter and it was $140k. Price is now $129,010. They claim an as-is value of $140k (based on my estimates its pretty accurate). ARV is about $160-170k, repairs are roughly $25-30k in my estimation. Needs a fair amount of cosmetics (including doing something about the ugly exterior, etc) plus most likely HVAC. My max purchase price would be about $82k. I noticed recently there was finally a bid of $105k with about $100k net to HUD, this bid was rejected. Looks like they have to sit on it a little while longer before they will get to my price point, just wondering now what others are seeing in regards to their pricing recently and if they are getting more flexible.
I’m closing on a HUD house next week that I paid $61k and its comps are very solid at $105-110k range (4 excellent comps in the area in the last 3 mo.). It fell out of escrow twice for higher amts. It needs about $6k worth of work to be ready for sale.
I’ve seen a couple of other ones fall out of escrow as well (show backup). That seems to make HUD more motivated.
I was kind of curious myself. Homes in my area were dropping consistently by 10% every month or two until about Mar. or April, then stopped. No offers were made on these properties at all since then.
In a down market, it just does not seem to make sense to hold on to them when clearly nobody is willing to make an offer. I don’t remember if it was the same last year. Do they drop prices in the winter months and hold them steady during the “buying season”?
Edit: Eh, nevermind. It seems that Connor, Michaelson & Boul no longer handle HUD homes in Michigan and Ohio. They have the same old houses and same old prices on their website, but no mention of the change. LOL! :anon