Question About HUD Homes
What has been your experience dealing with HUD? I am asking because there is a property I am interested in that is a HUD property. They evaluate it at $212K and are asking $190K. The $ 190K is a reductrion from what they initially were asking. I want to offer $120K because I had a home inspection done and the home needs quite a bit of rehab. Namely new interior because of mold, new electrical, new HVAC and ductwork, windows, kitchen, baths, floor., new roof and lots of downed trees to remove. It is in a great location. I estimate about $55K if no hidden problems.
What is the chance of them taking that much below what they are asking?
I am not sure how it works elsewhere, but in my State I have found that HUD will not accept below about 85% - 90% of their asking price regardless of how long it has been on the market. They sell by a formula and all bids are sent electronically. In the bid offer form, there is no way to explain your offer, just numbers.
So the only way you can know for sure is to make the offer. However, HUD sales are public information so if I were you I would research previous sales (recent) to get an idea of how low they are willing to go in your State. Always remember to deal with Net Price to HUD. They do not care about purchase price, just Net Price.
Good Luck.
JS.
When submitting a bid on a HUD home can you make your offer contingent upon home inspection or are HUD properties sold As Is with no contingencies allowed?
Well, they have an offer of $258K (lol). Some folks are just crazy. THe broker said it was from someone out of state that did not even check out the property.
I guess not everyone has heard of the overly inflated property values in South Florida
Some people...lol. Good luck with that property.
Bring us your title search data and the info will be forthcoming. We really need to evaluate encumbrances before an auction vs negotiated purchase can be intelligently discussed.
[addsig]
In NC, once the home has gone to auction it will wipe out the 2nd mortgage. Tax liens will still exist however