Offering Below Asking on a HUD Home

[Shawn Torsitano]

A HUD home came on the market the other day. Pretty outdated, but not destroyed. Certainly needs new paint, inside and out. New flooring everywhere. Kitchen cabinets seems like they are in good condition, but flat, and currently stained that typical brown color. Probably could use painting. Needs new appliances throughout, some updating to the one bathroom. It's got older windows, but I'm not sure if it's worth replacing them with vinyl ones.

Ballpark, I'm thinking around $15,000 for renovation. Asking is $85,000, I'm initially putting the ARV at around $130,000. Using the 70% rule, we're down to $91,000, and then minus repairs, ballpark offer is $76,000.

The agent remarks in the MLS specifically says, "Offers to be full price or more.", which I think is a little ridiculous of a demand. Is it worth exploring this house a little more to see if it's a viable candidate?