9b. Important factors to consider
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A bidding process is used to purchase HUD homes. The bidding process takes place online and only an approved real estate agent may submit bids. For this reason, working with a qualified real estate agent is important. Each week, RealtyStore.com posts new HUD listings. For the first 30 days of the initial bidding period, only owner occupant bidders are permitted to make a bid on the home. The general public may submit bids after the first 30 days, which is the point when investor purchasers may make a bid.
HUD often accepts bids that are less than the listing price, but bids that are too low will not be competitive when bidding on HUD homes. While the highest bid usually wins, buyers want to avoid bidding too high or too low. Provided the bid is above the minimum bid, HUD will take the bid that offers the highest net profit to them. Buyers must carefully consider various factors when deciding on a bid amount to ensure they make a bid that is acceptable to HUD.
Why It’s Important to Consider What Bids are Acceptable to HUD
Many buyers are unaware of how important it is to consider what an acceptable bid to HUD is. This consideration is important for several different reasons.
First, knowing what bids are acceptable to HUD and the minimum bid can enable buyers to enjoy the best possible deal on HUD homes. Those who plan to purchase HUD homes are obviously looking for cheap homes that provide significant savings. Price conscious buyers can use minimum bid information to acquire a property at the lowest possible price, although sometimes competition may drive the minimum price higher on some homes.
Another reason to consider what bids are acceptable to HUD is to be able to rule out certain properties. List prices are given for HUD homes and buyers can easily use the knowledge of the minimum bid to rule out any properties that may be overpriced, even if the minimum bid is accepted. In many cases, searching for government foreclosures at RealtyStore.com can offer important information on the value of a home available as well as whether it is really a good deal.
Last, minimum bid information is important to homebuyers because offering bids less than the acceptable bid will simply be a waste of their time and the time of their real estate agent. HUD does not accept bids that are less than the acceptable minimum bid and will not counter or negotiate the offers made by buyers.