Buy a HUD Home? bid? Do I BID Higher then listed? Maybe

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Whenever I show property to any client I always want them to get the best deal so their resale will be good.  When your looking at REO foreclosure homes (Real Estate Owned by a BANK) or HUD Homes (Housing and Urban Development- Owned by Government) you really need help from a Broker. 9-10 times homes are priced low to attract buyers to the home from advertisement like online resources. All HUD homes you will have to place a bid prior to a deadline to win the home. Most HUD homes are listed 9 days before any deadline is over. If your watching your e-mail from me, you will see the latest HUD homes or foreclosures first for free. No costs to you.

Now, most HUD homes are worth more than what is listed because I know they list them low to sell them fast. It is only after viewing a property and reviewing all the neighborhood comps that I truly know the value. I have seen plenty of foreclosures and HUD homes know there value.

Just this weekend I showed a home in Marine Creek Fort Worth Texas 76135 Zip code. The home was in a neighborhood with 170,000-210,000 homes. The smallest home in the neighborhood was 2200 Square Feet and largest was 3800 Square feet. This one in particular was 2900 Square feet, 5 bedrooms, 2 car garage. The home was priced at 142,000 which is an amazing list price for the neighborhood. The Tax rolls say it was apprised at 202,000 in 2008. The comps in the neighborhood suggest it was worth 154-158,000 according to recent sells. When the market returns it will be well worth what others paid in 2002-2006 when built. You can check this on the DEED records of the county public records. 7 out of 12 homeowners paid 170,000 and above in 2003-2006.This is good because they will have to sell at 185,000 or higher in the near future to move. In this case you are buying someones 50,000 dollars of equity. Someone lost this home and you have the opportunity to purchase it from HUD. So it is okay to place a bid higher to secure the purchase.

As you can see the home I was speaking of was listed at $142,000 and someone won the house at 154,000. That is 12,000 above what they were asking, but still 50,000 below what it is worth in a better market for resale. 

BID RESULTS FOR THE HOUSE ABOVE Winning BID:

10/31/2009 03:48:37 PM

11/01/2009 11:59:59 PM

List Price $142,000

Winning Bid $154,000

$141,680

Owner/Occupant

TOWNVIEW REALTORS CORPORATION

11/02/2009 09:21:16 AM

Please send completed contract with required addenda to the appropriate HUD M & M Contractor within 2 business days of the Offer Acknowledged Date. The Contractor address is identified in your contract package.

Offers Submitted Date & Time

Offer Deadline

List Price

Offer Amount

Net Amount

Buyer Type

Selling Broker

Offer Reviewed Date & Time

Conf/Lotto Number

11/01/2009 09:52:31 PM

11/01/2009 11:59:59 PM

$142,000

$147,155

$141,155

Owner/Occupant

FT WORTH R E LTD

11/02/2009 09:21:16 AM

CONF-3300488046

10/31/2009 03:32:43 PM

11/01/2009 11:59:59 PM

$142,000

$152,000

$139,840

Owner/Occupant

TOWNVIEW REALTORS CORPORATION

11/02/2009 09:21:16 AM

CONF-3300486967

11/01/2009 08:51:47 PM

11/01/2009 11:59:59 PM

$142,000

$145,000

$139,650

Owner/Occupant

NRT TEXAS LLC

11/02/2009 09:21:16 AM

CONF-3300487938

11/01/2009 12:54:15 AM

11/01/2009 11:59:59 PM

$142,000

$125,000

$121,250

Owner/Occupant

AUCKLAND LP

11/02/2009 09:21:16 AM

CONF-3300487113

10/28/2009 04:27:24 PM

11/01/2009 11:59:59 PM

$142,000

$105,320

$101,060

Owner/Occupant

JUDGE FITE COMPANY INC

11/02/2009 09:21:16 AM

CONF-3300485183

 If you like the home, it can be yours with the right BID. Bid smart and move in.