We get this question a lot. Every buyer wants to know, how low HUD will go, when they submit an offer.
Unfortunately, I don’t have a good answer. Let me show you a few examples of how to judge the value of Columbus OH HUD homes for sale.
It is safe to say that most Columbus HUD homes sell for less than asking price. Some homes sell for much less than asking price. And then there’s the house on Lock Road in Centerburg.
It is a perfect example, of how flexible HUD can be, if they want to get rid of a property.
This house was originally listed, with the old asset managers, for $101,000. After a series of price reductions and canceled contracts, HUD accepted $19,000.
Wow! That’s less than 20% of their “appraised value”, the value that FHA supposedly accepts if you want to get a government secured loan on this property.
Here’s another HUD house where the appraisal may be questionable and the repair escrow is completely wrong.
This HUD home is located on the South East side of Columbus in the Blacklick Estates subdivision on Noe Bixby Road. Go to the property website, take a closer look at the pictures, and judge for yourself.
The repair escrow lists a total of $1,430 in minor work. It does not state that there’s no kitchen in the house. Your lender may not be satisfied with that repair escrow, and certainly not fund your loan, if the kitchen is missing. You probably will have to apply for a 203K FHA rehab loan, instead.
3400 Noe Bixby Rd, Columbus, OH
Asking Price: $36,000
The asking price of this house may seem low, if you compare it to the auditor’s value of $86K. However, we just sold another HUD house down the street for just $40K. And that one was in move-in condition.
If you like a specific HUD house, I recommend that you be patient. Most likely nobody will buy it, if it is over-priced. After a couple of months HUD will become a very motivated seller and accept low-ball offers. That’s the time to strike and submit your bid.
Want to hear my bidding recommendations for HUD houses?
Just call me at (614) 975-9650.
Thanks for reading the OhioPrettyHomes.com Blog!
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Real Estate Agent helping First Time Buyers.