What’s the lowest price someone has purchased a HUD home for?

Question

Any personal success stories low balling HUD? If a house is listed at $150, are they firm or is there flex in the price?

Tell me your personal best win!!! Cheers

Greg H. · Answer

I have purchased north of 700 HUD homes. Best ever purchase is less than 10% of the original listing price and scores of less than 20%
The reality is this is not possible in most of the country and in major cities

The best possible offer you are going to get accepted in the 1st 30-45 days on the market is 87-88% net to HUD of the list price. This is the standard for all of the US

Marcus Auerbach · Answer

From what I have seen they will not take much less than 90%, but will systematically drop the price, if they dont get any bites. So basically wait until they are about 10% above what you wnt to offer!

Lynnette E. · Answer

I might have won this one, but it won't help you know what to bid at all.

September 12, 1989 I bought my first home.  It was a row home in Upper Darby outside of Philadelphia where I worked.  Built in the 1920's.  It was my first house and the start of my buy the trashed house and fix it up.  I paid HUD $40,700.  I sold it 4 1/2 years later for $48,900.

Photos on RedFin show the front yard my dad and I terraced and the built in snack bar with shelves my dad built for me.  The kitchen cabinets we replaced.  My first kitchen remodel!  Awh, but I left that bath as was.  Way too many tile patterns were already coating on the walls and floor to deal with!  Tile was in great condition, just too much.  Drywalled the ceiling too, so much I did to that house.  Nice to see some of the things I did still there 30 years later, even though they trashed that house again.

Check it out if you want on redfin address is 7212 Lamport Rd Upper Darby PA.

Doug Wright · Answer

If you submit an offer on a HUD home that doesnt meet their minimum net to HUD they should send a "counter offer" email that tells you what the minimum net to HUD needs to be.

Michelle Fenn · Answer

I had a HUD program where I bid on any property in a good neighborhood.   My wins were at about 70% of list.

Dawn P. · Answer

I've bought only one HUD home - it was listed at $55,500, sat on the market for three months, and I ended up paying $50,800 for it. I put about $8K into it before I could rent it out.

I wish I could find a few more like that...

Michael Noto · Answer

@Greg H. has great HUD posts on here that I have learned a lot from and his one above is just another. Good info for anyone looking to purchase a HUD.

The cheapest I have ever purchased a HUD for in CT was $55k, but it was 7 years ago and the market was completely different. We put the bid in the day they made a big price drop and I think we lucked out a little bit if I remember correctly.

Brian Shaha · Answer

A direct answer to your question:

Many times the bank will take a much lower amount that the plaintiff owes on a house. For example if someone owes $150k the bank may have the starting bid start out at $100k

Sometimes others will not even bid, and you can pick things up for cheap!

Another strategy for me has been if you know there are 1 or 2 serious bidders at the in person auction, tell them you will give them $1,000 not to bid on that house. Do that with a few people and you just saved yourself a bidding war that might have ended up going up $10k+

Brian Shaha · Answer

Not sure about "HUD" but I have picked up houses from sheriff sales / foreclosure auctions at $70k before. This is in Kenosha, WI (center point between Milwaukee and Chicago)

Purchased at $70k put about $20k - $25k into it, and sold for $125k

Process took me about 4 months at that time from purchase to sale.

The first time I got into residential real estate I did 3 homes in my first year. I sub contracted all the work and never really swung a hammer. I just supervised the work, sourced all the material and labor, and paid an agent to list and sell the homes.

With the foreclosures commencing again, I am thinking of getting back into this as my "trial" the first time actually went pretty well.

What’s the lowest price someone has purchased a HUD home for?

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