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The property was HUD listed at $126 a square foot in a community where updated houses are selling at $105-110 a square foot. This place is in ok shape (however dry rot in some places in soffits), needs some repairs and a new front door and new garage door but not anything scary, but has original (working) HVAC, windows, kitchen and baths --- nothing updated since 1984. I bid $90 a square foot. HUD then lowered the priced to $105 a square foot but never responded to my bid in anyway at all. So there the property sits. I have done the math a zillion times and it just makes no sense to pay any more than what I offered. Although I have to buy it as an investor (we own a home), it is what I want for our retirement home so I plan to clean it up, lease it out a few years and then renovate it and move in. Is it usual practice for HUD to just ignore bids and not even respond. My realtor -- who submitted the bid for me -- is a complete loser and just shrugs and says he doesn't know. Last time I ever use him. Any ideas on getting this house? Rebid it again at $100 more thru another broker?
The property was HUD listed at $126 a square foot in a community where updated houses are selling at $105-110 a square foot. This place is in ok shape (however dry rot in some places in soffits), needs some repairs and a new front door and new garage door but not anything scary, but has original (working) HVAC, windows, kitchen and baths --- nothing updated since 1984. I bid $90 a square foot. HUD then lowered the priced to $105 a square foot but never responded to my bid in anyway at all. So there the property sits. I have done the math a zillion times and it just makes no sense to pay any more than what I offered. Although I have to buy it as an investor (we own a home), it is what I want for our retirement home so I plan to clean it up, lease it out a few years and then renovate it and move in. Is it usual practice for HUD to just ignore bids and not even respond. My realtor -- who submitted the bid for me -- is a complete loser and just shrugs and says he doesn't know. Last time I ever use him. Any ideas on getting this house? Rebid it again at $100 more thru another broker?
Old rule was that HUD would be looking to net about 88%--90% of the listing price.
They probably figure you are so far off there is no point in countering.
Or your offer is messed up technically and not worth responding to.
Your realtor should follow up, but really there may be no information for him to know. HUD is a big government agency. They might think the house is worth more. Unless they discuss their reasoning with the listing agent (doesn't always happen) and gives permission for that person to discuss it with your agent, there is no more information to give you. Sometimes follow up helps, but not always. Probably you could submit another offer on the house now that it's been on the market for a while. Can't hurt to try, all it takes is time.
Forgot to mention that HUD bids are handled differently than other properties. Make sure the agent knows how to make a technically correct offer on a HUD home.
HUD often does not respond to bids where the net is not within the matrix. I tell people to up their bid by $100 or $500 whatever makes the most sense to them.
In my experience, HUD does not usually counter. They either accept or reject. And they respond by you checking their website. In my area, they use hudhomestore.com, I don't know how widespread that site is, but it looks like it might be the site for the whole US now. We used a different one until recently, so yours might be something different. On that particular website, if you submit an offer, and the next day, the house still says it is for sale, your offer was rejected. If they accept an offer, the house will disappear from the website the next day, and you can check on the bid to see if it was yours that got accepted. That is all they do for response. If it was your offer that got accepted, you have to mail a bunch of paperwork in to them.
HUDHomeStore is the site for the entire country now.
HUD MAY counter, but the buyer and agent need to know that a counter is the amount that HUD wants to NET after costs.
And, the counter is not necessarily exclusive to any particular bidder. HUD may offer the counter to many bidders, and be happy as long as they get their net.
How timely is this post, as I just spent a couple of hours at a HUDPemco session today?
Last edited by MikeJaquish; 09-12-2011 at 07:31 PM..
The property was HUD listed at $126 a square foot in a community where updated houses are selling at $105-110 a square foot. This place is in ok shape (however dry rot in some places in soffits), needs some repairs and a new front door and new garage door but not anything scary, but has original (working) HVAC, windows, kitchen and baths --- nothing updated since 1984. I bid $90 a square foot. HUD then lowered the priced to $105 a square foot but never responded to my bid in anyway at all. So there the property sits. I have done the math a zillion times and it just makes no sense to pay any more than what I offered. Although I have to buy it as an investor (we own a home), it is what I want for our retirement home so I plan to clean it up, lease it out a few years and then renovate it and move in. Is it usual practice for HUD to just ignore bids and not even respond. My realtor -- who submitted the bid for me -- is a complete loser and just shrugs and says he doesn't know. Last time I ever use him. Any ideas on getting this house? Rebid it again at $100 more thru another broker?
HUD has some really specific rules that they follow for pricing and then for acceptance of an offer. Homes always start at appraised value and they drop the price about 10% every 30 days until it sells. (at least that is what the manager does out here). They don't budge much off list price. They average 6% off list price in my area.
HUD will counter sometimes. Typically they just ignore low offers that don't fit in their criteria and hold them as "back up offers." You are still in their system as a back up, but submitting $100 more is a waste of time. You have to be in the matrix to have a response.
It is the way of HUD.
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