Just when I finished the HUD homes map for this week, I discovered that NHMS published another announcement. It says that they will no longer allow buyers to order a 2nd appraisal when they finance their HUD home purchase with an FHA loan.
Over the past 6 months it was common practice that buyers, who offered more than HUD’s as-is appraised value for a property, were allowed to order a new appraisal to finance the full purchase price. By discontinuing this practice the buyer’s FHA lender will have to use HUD’s as-is appraisal. If you offer more than the as-is value, you will have to bring the difference in cash to the closing table.
Strange as it sounds, this rule change may actually be good for you as a buyer. I believe that fewer people will over-bid on HUD homes. From personal experience I know that many buyers (and their realtors) may not be aware of this rule. Once they find out that they need to bring more cash to closing than expected, they are more likely to cancel their contract.
So, if you work with me as your agent you will be a winner! You won’t get tangled up in a bidding war, nor will I let you pay too much for a HUD property.
There are 26 new HUD listings this week. A great selection of new homes were listed mostly in suburban school districts, such as Hilliard, Delaware, Canal Winchester and Gahanna.
With the loss of incentives for owner occupants I certainly expected that more homes would become available to all bidders. This week the total number of HUD listings fell to 114, while the number of homes available to all bidders swelled to 50. That’s almost 50% of all HUD Homes.
Listing Statistics
Total homes available: 114 (last week: 132)
Owner occupants: 64
All bidders: 50
New listings: 27
Sunday deadline: 16
Relisted/Price reduced: 21
Median Price: $71,325 (last week: $80,100)
Average Price: $75,564 (last week: $80,543)
Highest: $175,000
Lowest: $8,800
Homes less than $50,001: 36 (last week: 34)
Between $50,001 & $100,000: 48 (last week: 57)
More than $100,000: 30 (last week: 41)
Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650
