Making offers on HUD forecosures

A couple of things.

1.Never go by pictures!
2.HUD is not consistent in their offer accepting. Usually no less than 80% of their asking price however.
3.Are you familiar with HUD policies concerning earnest money on excepted offers and when the earnest money becomes non-refundable?
4.Have you asked your agent exactly what happens if you get a HUD offer accepted?

Good luck!!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

to get it for more than that. You can always submit an offer and the realtor will receive an email from HomeTelos who manages HUD properties with the Minimum Net they would be interested to get. It will really depend on how desperate they are in selling the property. Zillow and TotalView are good just to get a rough idea. Don't base your comps based on these sites, they are good but dont trust them too much. Use your agent's comp.

Go forward with your offer. Have you seen the property inside? to obtain a more educated offer, look at the property and get some repair estimates. What's your exit strategy too?

Michael, Tom and Jeri thanks for all the advice. I will be talking with the agent tomorrow. I will see what he can tell me about dealing with HUD foreclosers. I planned to look at the house if my offer was accepted.

I talked to two other agents that seemed to be eager to send me listings but it has been over a week and nothing yet.

Again thanks for the advice. I will let you know what I find out.

Jimmy

if there's a property listed on HUD that you think may be a good deal-after you've gotten your comps, done an inspection, checked out the neighborhood- and it is available- the first two weeks it's listed, it will state that it is exclusive, meaning that only homeowners or government agencies can purchase- you can make a lower offer; the representative for HUD will contact your agent and let her know if your offer was accepted or not; if the property has been listed for a while, keep an eye on it, because sooner or later, they will reduce the asking price if no one is making any offers.

Wishing you success,
Valerie

Valerie thanks. I should know more tomorrow. I plan to look at the property and get the agent to get comps.

Jimmy

get yourself a handyman/contractor on your team, so that he can look at the properties with you and give you a better estimate of the repairs needed. You don't want to find out about an expensive repair after your offer is accepted-the EM will not be refunded.
You can check the addendums for the property on the HUD website for the repairs that they list as needed- it can serve as a basis of what to expect, but don't use it as a thorough inspection.

Valerie