Hud Purchasing Process.. (auctions, housing, price, property)

[themaster]

Made a offer on a HUD home basically 50% or so of the listing price (I suggest that its value is about that) and it was rejected.. home seems to have been at one time via a old search about 145% more at one time (and appears to have been on the market for a year)

I was told a story that stated a person purchasing a hud home.. made a lower offer on a home and it was rejected; after some time hud then lowered the price of the home below the price of the 1st offer.. the person made a offer for less on that same home and got it and paid less then there 1st offer..

Is this typically how hud works?
Do you have to wait for it to get to the price you want before offering give or take?

[desertsun41]

You almost never find a bargain HUD home. They typically list those homes by their red ribbon value. They comp them based on simular comps but do not deduct for condition meaning they do not deduct for the work they need to bring them up to livable conditions. I guess the govt thinks our sweat and labor has no value.

Nearly all HUD homes are wrecks as you have already discovered. In my experience they rarely except a bid for lower then asking price. Perhaps in this horrible market where HUD has to compete with all the bank auctions that they will lighten up on their harsh restrictions.

If HUD fails to get their asking price after 30 days they usually lower the asking price or starting bid. After about 90 days and no better offers they will call up some of the old offers and ask if they are still interested.

[irish setter girl]

I personally have not seen a HUD home in decent shape, and this is years before this housing mess. I assume there are exceptions out there but I have not had good experiences with HUD homes. Unless you really really really like the house pass on it, it is not worth the hassle of dealing with HUD.

[themaster]

I'm not so much intrested in the home as the land it's sitting on.. but yah if they make it hard to deal.. I may have to pass..

[Brandon Hoffman]

No real give or take with HUD. They have stringent guidelines on everything from offers to inspections. It is possible to get a deal but they also take into account usage. HUD gives priority to primary owners over investors meaning that a primary owner can buy the home at less than an investor regardless of offer difference.

To protect yourself, if you haven't done so already, I suggest hiring a Realtor familiar with HUD to advise you on the best way to get the property at the price you want. There are so many variables on HUD it's impossible to go into it all over the internet. They are a funny organization in some ways but once you understand the process it's possible to at least get a feel for what they want and how to get it done.