How Low Will Hud Go

[Tom C.]

How low of offers have we seen HUD accept? What percent of their appasal? Just curious what you are seeing out there

[Shane Johnson]

My second and most recent home, was a HUD home. I was an Own Occ offer , within the first 5 days of the 10 day time frame. I bid $12,400, OVER the HUD appraisal/listed price at $70,000. It was a great deal, so I made sure to bid more than asking so I won it, but not too high, so that they would accept my offer. I was worried about two things: 1 - HUD wouldnt accept, because it may not appraise for that much over their appraisal, 2- that it would actually appraise for that much. I settled on the number I did, as it was roughly 10k over their asking, after they paid the 3% max allowed closing costs. It was a 2 week nail biter before I finally heard on my offer. They accepted my offer over a "owner occupied" cash offer of $85,000. They actually contacted my realtor after the bid closed, asking when we placed our bid, and other questions, obviously upset HUD took my offer over their cash offer for more money. According to my realtor, being in the first few offers is very advantageous to getting an offer accepted. It may or may not be true, but in my case I am thankful my realtor advised me to get my offer in as soon as absolutely possible to the opening of the bid.