How to Determine House Market Value of HUD Homes

"Market Value" is the most probable price property would bring in an arm's-length tranaction under normal conditions on the open market.

"Appraised Value" is an estimated property's market value, based on established methods and the appraiser's professional judgment.

"Market Price", on the other, is what a property actually sells for, its sale price.

HUD list all of their HUD homes "AS-IS" appraised home value. The appraisals are all FHA appraisals. So, the list price is an estimate of the house market value based on the condition of the property at the time of the appraisal.

For HUD homes the appraised house value becomes the list price. The appraised home value does not mean it is going to sell at or close to the list price.

I have seen where HUD homes have been appraised for 20%-50% more than what the sale price end up being. Sometimes I am amazed how they come up with the house fair market value.

This is one of the reasons you need an experienced real estate agent! An experienced agent can do a Comparative Market Analysis for the HUD home you want to bid on. They take homes that have sold in the area and ones that are still on the market and compare them with the one you want. They can give you a good idea the house fair market value.