Did you ever wonder why some HUD homes don’t sell?
It’s a combination of 3 factors which determine, if a house is a good deal that will be snapped off the MLS as soon as it gets listed, or if it sits forever without even a single showing. The 3 factors that have a negative impact on a HUD listing are:
- Listing price too high for the type of home (foreclosure or bank-owned)
- Located in the Columbus school district
- Needs repairs or has outdated interior
Here’s a Columbus HUD home that meets all of these negative criteria. No wonder it has been on the market for more than a month without any offers.
Unfortunately, the asset managers did not reduce its list price, yet. This house is available to investors. But at its current list price of $116K it’s just too expensive for an investor to make any money.
Say you would like to buy this house. What’s your best strategy?
Submit offers! Without an offer you can’t get the house. Start with a low offer, one you feel is reasonable considering the location and condition of the property. The worst thing that can happen is that HUD doesn’t accept your bid. No money lost!
Second best? You may get a counter offer. Sometimes the asset managers decide to counter and you have an opportunity to accept that counter offer.
You don’t have to take it, if it’s still too high. Just continue submitting your preferred price every day. As all offers are submitted online, it only takes a few minutes, and your realtor will gladly do it for you.
Sooner or later the HUD asset manager will settle near your price point!
I know for a fact that this strategy has worked for many years, and it still works with today’s new managers. There’s just one disclaimer to make – this approach may fail, if there’s competition.