Although foreclosures are at record higns in Pima county Tucson bank reos are selling at record pace. Real Estate agents are finding the competion very fierce on well priced lower end bank reos. It is not uncommon to have multiple offers up to 15 offers on one property. A visit to a recent REO brorkers office had 28 offers on their incoming fax machine by noon. Some bank reos assett managers insist that the property be on the market for 48 hours before they accept an offer.
Some agents though sell the property in house with no exposure in mls. A key to getting your offer accepted is having perfiect paperwork. Include all addendums and proof of funds with your offer. Make sure you have a lead base paint if applicable. Hud homes offer a transparent bidding process because you see the actual bidding history of a home.
Hud homes offer the first time buyer and/or investor a level playing field. The hud bid process is electronic and you get immediate results in most cases the next day. Eventually in approximately a week you can also see what the other bids are on the property. Unfortunately in the Bank reo business not all offers are presented in the best light to an assett manager. We have tracked offers from agents that have recieved the winning bid despite a higher cash offer coming in. The hud bid process is a transparent operation and eventually you get to see how the competition actually bid on the property. To find out more about the bidding strategies and free bank reo seminars in the Tucson area check out www.Bielteam.com
You can get a 203k loan to renovate a hud home if the
repairs exceed $5000. This is a great way to go if you
don’t mind the hassel of organizing the fix-up. There are
consultants that specialize in 203k loans and can help
facilitate the process. Hud also offers a repair escrow option.
The repair escrow is for homes where the repairs are
less than $5000. dollars. Home path finance also
offers a renovation loans on fannie Mae Bank reos.
To find out more about renvoation loans and Hud homes
check out this seminar coming up Oct 29th in Tucson.
YES YES YES YES YES YES !!!!!
Arizona has a 22% downpayment assistance program that is available
on REO homes. Hud homes will qualify for this program. Its important
to realize that one of the requirements is that the property be sold
for 1% under the appraised price. HUD homes are appraised in advance
so its very easy to determine if the home will qualify. Simply
look on the mcbreo.com website and check the as is value.
Keep in mind that HUD will not allow the property to be reappraised
during the sale process.
Welcome to Hud Bid Secrets,
This is where we pull back the curtain and give you tips, tricks and techniques to get a winning bid on a HUD home. We are located in Tucson AZ and we monitor the state of Arizona. With over 20 years experience on HUD homes we have discovered through the university of hard knocks what works to get results.
Hud homes during the boom years took a back seat as the loan of choice was a typically conventional and not guaranteed by HUD. Since the subprime meltdown and no more Alt A or stated income loans HUD Fha loans are now the loan of choice for most buyers in the affordable housing ranges. This means that HUD home inventories will dramatically rise over the next decade. Our goal is to be at the forefront on research for HUD bidding techniques. Fortunately in the last few years HUD has adopted a transparent system so consumers and agents can actually see what the competition bid on a HUD home after the sale. Plus even unaccepted bids are shown on the bid statistic page.
On my first HUD sale in the mid 80’s we looked at a home for only $23,000. I knew instinctively the price was low. We bid $5000 over the asking the price and got the winning bid. Turns out there were 13 other offers. Fast forward to the year 2009 and the days of multiple bids hascome again. In Tucson and Phoenix we see anywhere from 2 bids to 30 bids on a home. The key to ne when there will be multiple bids is the home is hot and the area. Its an art and a science to determine if the house will be in the extreme popularity zone. An Experienced agent can usually determine if the home is under priced . It may be wise to aggressuve bid up if the home is priced substantially below market. In any case its best to carefully review the comparable sales. With a competitive bidding strategy you will get a winning bid!