HUD Home

A HUD home came on the market the other day. Pretty outdated, but not destroyed. Certainly needs new paint, inside and out. New flooring everywhere. Kitchen cabinets seems like they are in good condition, but flat, and currently stained that typical brown color. Probably could use painting. Needs new appliances throughout, some updating to the one bathroom. It's got older windows, but I'm not sure if it's worth replacing them with vinyl ones.

Ballpark, I'm thinking around $15,000 for renovation. Asking is $85,000, I'm initially putting the ARV at around $130,000. Using the 70% rule, we're down to $91,000, and then minus repairs, ballpark offer is $76,000.

The agent remarks in the MLS specifically says, "Offers to be full price or more.", which I think is a little ridiculous of a demand. Is it worth exploring this house a little more to see if it's a viable candidate?

Comments

  • I would, I can't beleive the agent said that in the remarks
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  • I did some digging, asked on Bigger Pockets as well. What I found is the house was a reverse mortgage. I guess they have additional limitations with what they can accept on those.
  • Yes, completly different.  They cannot accept less than appraised value in many cases, which is the list price. 
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  • Posts: 0
    Hello Mr. Ferguson,

    I am not sure if this is the right place to post this or not, but I hope you can help me. I am about to close on a HUD home this week and drove past the property, you could clearly see from the road behind the home that the tree in the yard had fallen on to the house and it's deck, doing some damage. I spoke to the next door neighbor of the house and they informed us that they had contacted HUD/the listing agent about the tree falling on the property and doing damage to the property the previous week via a email message on one of the online listing sites. However we were not informed of this brand new damage until we drove past the home, saw it and talked to the neighbor. Is there any thing we can do, shouldn't HUD have disclosed this information to us or our realtor since they were informed of it last week. We are completely new to home buy and it's processes and this will be our first home. We really do appreciate any in site you can give us.Thank you so much for your help.
  • Posts: 0
    Oh, also is there anything we can have HUD do? Like have HUD remove the tree or anything? Thank you again.
  • Yes, HUD should remove the tree and if it did damage may give you a credit. 
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    If you want more help with your investing, check out http://investfourmore.com/blueprint-for-successful-real-estate-investing/


  • Posts: 0
    Thank you so much for your help. We had our realty person contact HUD and they asked for pictures. Everyone is a little tiffed at me for trying to find out about if HUD was responsible for fixing it before we went to the table,they all wanted me to just leave it alone and not rock the boat, because it has extended our closing date yet again. However, I would rather find out if I have to pay to remove the tree or if they are responsible for paying for it. Thank you so much for your help.
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