Worth making an offer on a Hud home well below asking?

[David Robertson]

I found a HUD home listed at $88k that has been on the market for 90 days...it's first price drop was from $100k which is the 'As-is' value...it also had a pending contract that fell through in the last week...

Comparables are selling at $120-130k

Remodel Costs are $28k

Fixed Costs are $12.5k

Profit=$19k

Maximum Purchase Price=$66k

My maximum offer is $22k below asking or 25%...

Is it worth my time to make an offer? How are HUD offers generally treated?

What is usually your approach when the MPP is well below asking? Do you go ahead and make an offer or move-on?

[J Scott]

The nice thing about HUD offers is that it would take less time for your agent to write up an offer than it took for you to write that post asking if you should make the offer.

Give it a try and see what happens...