HUD Bid Amount Questions

[Jennifer Watson]

Hi All! I am new to the forum, fairly new to actually owning investment real estate (have been a landlord for about 8 months now!) but have been reading on the subject for several years and so far, made my first deal a good one.

I am looking at bidding on a HUD owned home with my sister. It has been sitting for about 35 days on the market. The price has not been reduced. Someone told me a while back that you can bid aprox 13% below the price and get accepted, but I have also heard they will take less if the property has sat for a while. Is there a consensus about this? Any thoughts? She will be bidding owner occupied if that matters.

Also, I am trying to figure out the 'net to hud' thing. I understand the agent's percentage can be included and thus reduce the 'net to hud' - can we negotiate the agent's percentage or is the 5% automatic? If HUD pays the closing costs does this also reduce the 'net to hud'?

Ok...last question! How long does a property typically have to sit before HUD reduces the price?

Thanks in advance!