Want To Win A HUD Home In Suwanee, Georgia, Follow My Advice!
Over the last three years I've helped my clients win as many as 10-15 HUD homes in a month. The bidding process for a HUD home is very easy, and is completed online in less than 5 minutes, in fact it's the easiest way I know to get your initial offer turned in, and the paperwork comes later, and only if you are the winning bid (or your backup offer is selected). Successfully winning a bid on a HUD home is another thing all together and can require a great deal of knowledge to be successful. If you want to Win a HUD home in Suwanee, Georgia follow my advice!
Regardless of the incredible amounts of experience I have in dealing with HUD homes, I had a client who came to me last week and wanted me to put in a low ball bid in on an outstanding 4 bedroom 2 bath home across from one of Suwanee Georgia's highly sought after Edinburgh Bear's Best, a gated golf community that sits on the Chatahoochie River and features homes from $500,000-$900,000. Additionally, the home sits on a lot directly in front of one of Gwinnett County's most sought after schools, Riverside Elementary, and feeds into North Gwinnett Middle and High Schools. These schools are among the top in the state. To get to this home you pass multiple million dollar estates, and an outstanding park one hundred yards away. With all of these outstanding features, this 2,500 square foot brick and vinyl sided home is listed for $149,000.
This home has an incredible formal dining room with judges paneling, chair rail and a double tray ceiling, while also boasting a rounded turret bay window with multiple large windows. Yet my as we walk through the buyer says, "Man, this house is going to need to be painted!" My response, "They have taken property condition into consideration when they priced it. Each HUD home has an FHA certified appraiser come up with an appraised value for the home and they list it at the appraised value, which is based upon current condition."
As we moved into the large eat in kitchen, I was impressed with the stain grade cabinets and the granite countertops with low profile, stainless steel undermount sinks, and nicely tiled floors. The fact that all of the appliances were fairly new and were in place was a cost savings. The potential home buyer says, "I think the tile is weird." I pointed out, "The only other HUD home listed below $150,000 at present is a 3 bedroom 2 bath townhome with much fewer amenities, a one car garage, and nearly 1,000 square feet smaller." His response was that he had been on the HUDhomestore.com and found some resources that told him that some HUD homes sell for 20% less than list price, some 10% less and others 5% less. I explained, "If you are searching in rural towns and are looking at homes that have been on the market for 90 or 120 days, or at homes that need significant repair, that it may be very possible to win HUD homes for an amount well below list price, but not in the most desirable areas on homes that have been on the market for 10 days and only need paint and carpet." I further mentioned that with the elementary school being in the back yard of the home, and the Chattahoochie River Recreational Area 100 yards from the front door, and the surrounding high end homes, this home did not fit in that criteria.
When comparing comps you have to understand what the market is doing, if you are going to be competitive on bidding on HUD homes, Fannie Mae, Freddie Mac or REO properties you must know the market conditions. I explained that at the moment, "In Suwanee, Georgia there are only two months of supply, where in a typical market there are 12-16 months of supply. This makes Suwanee, Georgia very much a sellers market. Further in the metro Atlanta housing market most homes are selling above list price and in some cases 5% above list price in highly desirable areas when the home is well priced." I explained that Suwanee, Geogia has been consistently ranked one of the top suburbs in the country to retire to, and to live in according to Kipplingers, Forbes and several other publications.
In the 30 minutes we were at the property there were three other potential buyers who came to look at the home with their agents. The asset manager had to come replace the key in the lockbox while we were there, he said it was the second time in one week that someone had, "stolen the key so that competing buyers wouldn't be able to see the inside." This client hired me because he has seen the posts I've posted on Facebook for three years with incredible deals, because I have sold investment properties with huge equity to a friend of his, because he likes the fact that I've coached and trained for Robert Kiyosaki with "Rich Dad, Poor Dad," and because I have the "Rich Life Real Estate Show" on WDUN AM 550 and FM 102.9, yet he won't follow my advice. This home renovated will bring a nice profit to an investor who wants to sell a move in ready asset in a great location, and I explained that the only way to be competitive on this one. He didn't follow my advice and called me and said he wanted to, "bid 10-15% below list price." Since I have to submit an offer at the buyers wishes, I submitted the offer, but the listing even points out that, "All offers above list price must have cash to pay the amount above list if financing is being obtained." This is a rule when going above list price on a HUD home and it shows that the listing agent is getting tons of activity. I pointed this out and could feel how badly it rubbed against the grain of this buyer.
If you want to win a bid on a HUD home, it's important to be competitive, know market conditions, realize that on the best homes in the best areas you will often have to be above list price, offer more earnest money, and do a very short inspection period. If you want to win a HUD home in Suwanee, Georgia, follow my advice!