Buy HUD Home, What to Offer?

I have had questions like “If I offer 50% of the list price, would that be too much?”, “Can I offer less than list price?”, “Can I offer more than list price?, “Would HUD be upset if I offer less than list price?”

This bidding process for HUD houses is just a numbers game for HUD. They look only at what the net amount is to them. No, if you bid 50% of the list price you probably will not get the bid. Yes, you can bid over and under the list price.

Where do you start to figure out how much to offer for HUD home for sale?

You start with a real estate agent. Not just any real estate agent, but a real estate agent that is experienced in selling HUD houses.

THIS IS THE MOST IMPORTANT POINT ON THIS WEBSITE! If you don’t have a real estate agent experienced selling HUD houses it can cost you thousands of dollars.

Also, you CANNOT buy HUD home without a real estate agent. If you have to use one, use one that is experienced.

When I first started buying HUD homes for myself and my clients, I needed to figure what is the lowest net to HUD that they would accept.

Again this is NET to HUD. How did I figure this out? I am a CPA, so I am fond of numbers. This little fondness for numbers does make me a very boring person, but it does help sometimes.

HUD publishes the BID RESULTS and BID STATISTICS of each HUD home for sale. The Bid Statistics page give the information on all bids and Bid Results page give the information on the winning bid.

All I had to do was analyze the winning bids of Bid Results vs the losing bids on Bid Statistics. This works for new listings of HUD houses.

It is my experience that HUD will accept about 86% to 88% net to list price.

HUD will also reduce the list price after the HUD home for sale has been on the market for 5-6 weeks. Usually the reduction is 10% of list price.

This photo is an example of HUD homes NC. This North Carolina HUD home is located in Charlotte and is listed for $129,000. There are usually 20-30 HUD homes NC in Charlotte.