HUD Properties

How do I know how much a HUD property sold for?

You can know the price a HUD property went under contract for prior to it closing.
In the good old days HUD would post every bid on their website after the bid was over and the world could see each and every bid. Today, they are not as forthcoming with information. However you can still view the net amount of the winning bid to HUD.

Go to HUD’s website, http://www.hudhomestore.com, click on bid results. A new window will open. Fill in the state and maybe the city or the zip code. It will list all of the properties which have recently sold. It does take HUD a few days to list the information here and will not be available the day the bid is open.
You will be able to see the real estate firm that sold the property, the net amount of the bid to HUD, and whether the buyer is an owner occupant or an investor.
By reviewing past winning bids, buyers can understand the way the market is bidding on these types of properties. This can show whether the list prices are being exceeded or if buyers are paying the list price or less.
It also shows the dated the offer was submitted, opened, and accepted. If a time delay is shown between the date opened and accepted, the public can understand that this was a back up bid.
If you need help on a HUD property, call me. I specialize in selling HUDs and other repo properties and know how to get them closed. Feel free to call me at 213-2992 with any of your real estate needs or visit my website http://www.sandiwalker.net.
And be sure to follow my blogs.

HUD Properties

Is the list price of a HUD property really the price?

People often ask me how HUD prices their homes. It is very simple. They obtain a FHA appraisal from a licensed appraiser. The appraisal price is the list price. If a buyer is obtaining a new FHA loan to purchase the property, the lender will use this appraisal. So if a buyer using a FHA loan bids over the list price, they will need to bring the difference to the table. If the buyer is using a conventional loan then a new appraisal will be obtained.
I have sold many HUD properties over the years and have seen some incredibly low appraised values on these properties. In these instances, multiple buyers tend to bid the price back up to fair market value—the price an educated buyer is willing to pay.
Sometimes the appraisal price is higher than a buyer is willing to pay. If so, HUD will reduce the sales price in time. It always makes me shake my head when a property has been on the market for awhile, the price is reduced and the buyer then pays more than the new list price. Why that buyer didn’t make an offer before, I don’t know. Maybe they just didn’t see the value at the old price structure.
During the initial bidding period when the bids are sealed for 5-10 days (depending if the property is insured or not, another blog topic) I strongly suggest making your highest and best offer. If the property is past the initial bid cycle and can now be bid on as a daily bid, the buyer may bid more aggressively. Just remember someone else may be bidding on the property also, at what price you are willing to lose the property.
Unless the property has been on the market for a long period of time (120-180 days) do not expect HUD to take a low ball offer.
A few days after the bid is accepted, HUD will post the winning bid amount in the bid review. Remember this is a net amount to HUD so you will need to adjust the amount to cover commissions to get a more accurate dollar amount.
If you want to purchase a HUD property, call a realtor who knows the HUD process and can assist you in getting the property closed.
If you have real estate questions, please feel free to call me at 405-213-2992 or visit my website. And be sure to follow my blogs for more useful info.

Real Estate

Is the market rejecting you?

Sometimes sellers want to list a property based upon what they need in order to pay off the property or for some amount that they need to move. However the value of a property is only worth what an educated buyer is willing to pay for it. Buyers today have lots of electronic information to help them get the best deal possible. They are looking to pay fair market value or to get a deal.
If your home is listed on the open market and you are not getting any showings, I am positive your home is over priced for the market. I believe that you need a certain number of showings in a week to get the property sold. This number will change based on your selling price.
If you are getting showings but you are not getting offers, then there is something wrong with the property. The buyers are finding something else that meets their needs with more amenities or is cleaner or perhaps is more updated. Feedback in this instance is critical. If the seller can fix the items that causing buyers to buy something else, then the property will sell. If they cannot fix the items that buyers are stating as reasons for not purchasing the property; i.e. room size, layout, or location; then the seller will need to lower the price to compensate for these items.
Everything will sell provided it is priced correctly and marketed effectively. And while advertising a property so people know it is available is crucial, pricing is probably the most important part of marketing. If a home is not priced correctly, it will just sit on the market and help other properties around it to sell.

If you enjoyed this post, please follow my blog. If you have questions, regarding real estate, please feel free to contact me at 405-213-2992 or visit my website at http://www.sandiwalker.net

Real Estate

Why do we do appraisals?

An appraisal is required when getting a loan, because the lender wants to know that the collateral (property) is worth what they are loaning on it. Since the underwriter is not going to drive out to every property they lend on, they require the borrower to pay for a third party person to review the property and compare it to other properties in the area. The appraiser is also required to verify that the property is in a condition suitable for lending and meets certain lending guidelines.
The appraiser does receive a copy of the contract. They then measure the property for square footage, note improvements, or deficiencies, and try to justify why an educated buyer would pay the amount they are willing to pay via contract using area comps.
A lot of my buyers will ask when the house comes back on appraisal for value, why it didn’t come back for more. I always respond that something is only worth what someone is willing to pay for it. The appraiser’s job is to justify to the lender why you believe the property is worth what you are willing to pay for it. If the appraiser cannot find past properties that have sold for values that justify why a buyer is paying what the contract states, the appraisal will come in low. Rarely does the appraisal come in for more than contract, because if the property was worth more than the sales price a buyer would have paid that in a free market.
In an increasing market, appraisals may come in low because appraisers are looking at historical data, while in a decreasing market, appraisals may come in high. The appraiser is always looking in the rear view mirror to see what is happening in the market. They tend to use comparable properties that have sold within a six month period

If you enjoyed this post, please follow my blog. If you have questions, regarding real estate, please feel free to contact me at 405-213-2992 or visit my website at http://www.sandiwalker.net

Real Estate

Do I really need a home inspection?

There is no law that says you need a home inspection when purchasing a home. The lender does not require that you get a home inspection. The lender may require that you get a clear termite inspection, depending on your loan product.
However, don’t you want to know what you are buying. Buying a home is an emotional decision, one where my buyers look at a home and ooh and aah over all the pretty things in the house. The new carpet and fresh paint look great and the granite counter tops are gorgeous, but what about the heat and air, the hot water tank and the roof.
A home inspection is for the buyer. In my opinion the buyer should be present, not just their realtor. The home inspector should check all the mechanics of the property and list any and all defects of the property. If you have questions about something mechanical, this is a good time to ask questions.
You are not required to repair these or even have the seller repair these items. In some cases, foreclosures, the seller will not repair anything. After the inspection, you may make an educated decision on whether to continue the sale or cancel it. It is at this point you can ask the seller to make some repairs to the property. Remember, repos will generally not make any repairs.
When buying a large purchase such as a home, educate yourself to all the facts prior to closing on the deal.
If you enjoyed this post, please follow my blog. If you have questions regarding real estate, please feel free to contact me at 405-213-2992 or visit my website http://www.sandiwalker.net