This question is not specific to one person I have met. Many folks ask me some version of this all the time. Here is the short version. I say short version because there are many different types of REO (real estate owned) properties available. Most people call them HUD homes because that’s what they have heard before. For the record I will be using HUD instead of REO because search engines like it.
Question: What is a general rule of thumb for purchasing a Rock Hill HUD home for sale by the # of days on the market. i.e, 10 days 85 – 88%; 30 days, 60 days, and 90 days ? I want to bid on a Rock Hill HUD home for sale that’s been on the market over 90 days. I cannot find any advice on (in general terms) what to bid based on the days on the market. I know other factors should be included in my decision, so I just need a general idea.
Answer: There are a lot of things to take into consideration when dealing with Rock Hill HUD homes, and you are dealing with government and banking bureaucracies so anything goes from their end, although they expect you to play by their rules.
HUD actually has their homes for sale appraised when they go on the market which would indicate what value the Rock Hill home could get financing for in today’s environment. I say today’s because it is as of the day it was appraised, which can actually be weeks or sometimes months before it actually hits the market. While the Rock Hill home for sale today may have been on the market for 90 days, the appraisal could potentially be older than 120 days. The appraisal could be 5 or 6 months old. You never know what can change in a Rock Hill neighborhood in that time.
The best way to go about putting in a strong bid is to have your REALTOR® pull the comparable homes for sale in the area, compare the condition of the home to other homes for sale and sold in the area, and use the comparison to determine where you want to bid on a Rock Hill home. Even more factors can go into your bid amount. If you are a cash buyer, you can generally reduce your bid on a home further, because HUD likes cash buyers on homes for sale that have been on the market for a while. There is not a simple “percentage formula” that you can use. It all depends on the comparable homes for sale and your specific situation.
Find someone that is familiar with buying a Rock Hill HUD home and is familiar with the area where you want to live. If you are not already working with an agent, I would be happy to help you in any way that I can.