Bid on my first HUD property

[Michael Stole]

I will place my first bid on a HUD property. What can you think of to increase the chance of acceptance? Cash close? close early? No contingency? Any thoughts are appreciated, but just don't tell me to increase the price :D

[Michael Scarbrough]

Mike,

HUD does not counter offer regardless of your requested purchase price. They will tell you what their lowest NET allowable to HUD is and this figure can be reached by subtracting the listing agent, your agent ( if you have one), and any closing assistance you are asking for up to 3%.

If you waited for the property to mature on the market then maybe you could get a lower acceptance price. How long has the property been listed for?

Mark was accurate on the 80% of listed price being the accepted price most of the time. I just purchased one for 85% net to HUD which was the lowest they would take and this is the average i have been seeing in my area.

Also, in my area HUD doesn't care when you close as long as it is within 45 days of signed contract. The way you fund at your closing doesn't matter to them.

Just make sure you figure out what you want to do with the property and come up with your number that will make you profit or cash flow and stick to it, it their NET is too high for you to profit or cash flow then move on and find another.

Hope this helps and Good Luck!