Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Foreclosures
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 10 years ago on . Most recent reply

Account Closed
  • Virginia
1
Votes |
1
Posts

are HUD counter offers meaningless?

Account Closed
  • Virginia
Posted

I missed out on my first rehab project. It was a 3/2 with vinyl siding near my home - the perfect amoutn of rehab for me to start with. My realtor and I agreed the list price of $157,500 was accurate for ARV since it was in the 25% with no garage in the area (Roanoke, VA). So basically HUD offered at ARV. I figured if I could get it at $115,000 I could repair front stoop, paint, carpet, repair small drywall holes, replace a few fixtures and pay realtor fees to sell and still make enough to satisfy me for my efforts.

I made an offer of $101,000 with $500 deposit to HUD.

HUD countered stating "minimum acceptable net to HUD offer amount for this property as $133,875".

That was too much to make any profits so I sulked and waited a few days since that was over Thanksgiving.

A few days later the HUD website shows HUD accepted an offer at $112,800.

So my question is -- are the HUD counter offers meaningless? I lost this one because I assumed there would not be any need for HUD to be so deceitful. I don't understand why they countered with a specfic number that is not anywhere close to what they accepted.

Thanks in advance to anyone willing to advise.

Brent

Most Popular Reply

User Stats

93
Posts
28
Votes
Randy King
  • Investor
  • Madison, AL
28
Votes |
93
Posts
Randy King
  • Investor
  • Madison, AL
Replied

@Account Closed HUD's counters are not counters as we know them, they are just the minimum offer that HUD will take at that time. If you rebid at their counter and a higher bid comes in, the higher bid will win. HUD's earnest money requirement is $500 for offers less than $50K and $1000 for offers greater than $50K. HUD will reduce the price after a certain amount of time, so you have to monitor on a regular basis. The scenario you wrote about happens frequently with HUD, it is just a function of how their asset managers work. Their are a lot of posts regarding the HUD bidding process on BP.

Loading replies...