Bidding on HUD homes in Fairburn Georgia is a very competitive process. Homes that are insurable under FHA guidelines get the most attention. Of those homes, the ones with the least amount of repairs receive multiple bids on a consistent basis.
In a multiple bid situation, how does HUD decide which bid wins for HUD homes in Fairburn Georgia? There are two main factors. First the Net to HUD, and second is the timing of the bid submission.
So what do I mean by Net To HUD? I will use an example of a HUD home in Fairburn Georgia listed for $135,000. (NOTE: For HUD the initial list price is the same as the appraised value obtained to prepare the property for listing.) And the property requires less than $500 in repairs.
I represent you as the buyer of the HUD home in Fairburn Georgia. I explain to you that since this property is insurable by FHA, the listing will draw lots of attention. This is the first day the property was made available on the HUD Homestore website for bidding. We decide that you really want the property, and you will make your best offer possible.
You offer the full price plus $1000 that will come out of your pocket. Your bid is $136,000. Now HUD takes the $136,000 and subtracts three things - buyer closing costs, selling broker commission and listing broker commission - to arrive at the Net To HUD amount.
So you ask for 1% in buyer closing costs on the bid for this Fairburn Geogia HUD home. That reduces the Net To HUD to $134,640. HUD pays the listing broker 3% of the purchase price of your Fairburn Georgia property as commission, and you and I agree that I have earned at least 3% of the purchase price as the Selling Broker commission.
Now your 'Net To HUD' for this Fariburn Georgia HUD home is $126,480. This is your bid amount from HUD's perspective. Without knowing for sure, let's say that your bid yields the best Net To HUD and you win the Fairburn Georgia HUD home. Great! Congratulations! Get ready for closing.
But what if...another buyer enters the EXACT same bid yielding the EXACT same Net To HUD? Yikes! I would hate to see that happen. How will HUD make the decision to break the tie?
Well it goes back to when each bid was entered. The bid entered first will be the tie breaker. And every bid entered receives a date and time stamp as part of the Bid Confirmation. So timing is everything...even with bidding on HUD homes in Fairburn, Georgia.
for more information about HUD homes, call our office at 404 418 8092. Or call my direct line at 404 246 3210. We are HUD Certified Selling Brokers, and we can assist you in every way.
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