Here is Richard Weisser's part 4 of the HUD Home Buying Guide.
There are a couple of additional items I am going to point out about placing a bid on a HUD home.
In Mississippi, only HUD registered brokers can place a bid for you (even if you are an investor). Also, if you are thinking about bidding way lower than HUDs asking price and the home has not been on the market for even 30 days, plan for an automatic reject. I generally use a mathematical formula to advise HUD buyers about bids.
Before I can place a bid for you, I will need:
- a pre-approval letter from a lender that has specific language
- Earnest Money deposit in certified funds
- a fully filled out HUD offer on paper so that I can explain all the addendums that HUD requires
It may seem like a lot just to place a bid, but if your bid is accepted all of these items are required in 48 hours. I like to have them from the start so we are not trying to scramble around to get them at the last minute.
Via
Richard Weisser Coweta Fayette Real Estate ERA United Realty:
In Part 3 of this series How do you find a HUD home in your area that is for sale? we discovered that the best way to find a suitable HUD homes is to engage a real estate buyer's agent that is proficient in the HUD buying process.
Once you have found a HUD home that is suitable for your needs, it's time to consider making an offer. In the state of Georgia, HUD uses a blind bidding process that allows each potential buyer to enter a bid prior to a clearly defined bid deadline.
Before having your buyer's agent enter your bid, you need to do several things. First and foremost, you need to read and understand the property inspection report prepared by the HUD inspector. The inspector evaluates the condition of the property in order to establish an appraised value.
Finally, before you decide on a final bid price to offer, it is imperative that you ask yourself this question:
Is it more important to you to get the house or to get a good deal?
That's a fair question, and it is an important one. Some buyers fall in love with a house, and want to ensure a good chance of entering a successful bid. Other buyers are more intent on getting a deal on a house, and that overrides their desire for any particular property.
As long as a buyer is willing to lose the house, a low bid can be proffered. But if a buyer really wants the property, one must seriously consider the HUD appraisal price as at or near the market value.
In Georgia, a licensed real estate agent must be used to enter a bid for an owner-occupant HUD property. And remember that experience is counts.
The most valuable asset that a HUD buyer can have in the bidding process is the assistance of an experienced real estate professional that has successfully entered winning bids on behalf of their clients!
Next: Part 5, What happens after your HUD bid is accepted? Previous: How do you find a HUD home in your area that is for sale?
;)
;)
