April 4, 2013

How much should I bid on a HUD Home

As the  first quarter of 2103 comes to a close, I will show you some real stats on what HUD and other similar homes are selling for on the market.

Many bidders beleive they can come in a swoop up one of these at a huge discount.  A couple of years back that may have been the case.  We were seeing some nice discounts given expecially for homes that sat on the market for a while.  Times have changed in the last year with the shortage of housing inventory.

So what should you bid on a one of these types of homes?  Sure they offer a lot of incentives to purchase but what I am seeing out there now is that these homes are going over bid price and sometimes a lot more over. Below you will find listing data pulled from the local Georgia MLS of government owned homes from first quarter 2013.  You can see that most of the homes sold at list price or above.

Keep this in mind when preparing your bid. 

1. Don't get emotional and just bid to bid, really want that home.
2. Discuss if you are willing to go over the list price with your realtor.
3. Check with your lender to make sure you qualify for the amount of the purchase before bidding.
4. Check with your lender on how much closing costs will be covered and if you will have to make up any difference.

The spreadsheet below shows actual sold properties and their list and their sold price.  Compare if they sale over list or below.

 hud type homes douglas and carroll county sold in first qtr 2013

Hi, I work with buyers and sellers in the West Atlanta area.  I can show and place your bid on any HUD property listed at Hudhomestore.com.

You can reach me at 770-294-9976 or Hurst.chip@gmail.com

I look forward to helping you.

Chip Hurst
Maximum One Realty
770-294-9976

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