HUD opportunity; bid strategy Q; Owner occupied

[Kelly G.]

I am looking at a HUD Manu home in CO. The price seems pretty low for a fairly decent looking house/property. The disclosure docs indicate the house is 'weatherized', and that there is an issue with the plumbing. I'm not going to be able to actually test the plumbing till after we close; so kinda looking blind here. The house is still in the "owner/non-profit/gov't" phase (no investors - in theory).

In a 'hot' RE market like CO; should I bid their asking price with inspection contingency and try to lower the offer after an inspection where I could itemize repairs?  Or should I start lower than asking and "hope" i get it?

This will be my primary residence for a while; and I've been looking for awhile, having missed  a few opportunities either because I waited too long, or bid/offered too low.  

Your insights are greatly appreciated.

Kelly