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I am in the market to purchase my first house, and my mortgage guy said I might as well get pre-approved for everything on the market including a HUD home.

I actually found a nice HUD house, and went in at full asking price. In todays market and the house being a HUD what do you think the chances of someone bidding more than the asking price?

It is a steal at what they're asking, and I figure a full asking price in todays economy should get it, but at the same time Im wondering if I should have bid more. It's a tough decision because I feel like Im either going to kick my self when I over bid a lot or I lose the house by a couple grand.:lol:

Anyone have any input? I find out this coming Monday.

Thanks, Brian
 

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I would make sure you get it inspected first...
 

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Discussion Starter #3
Just like any other house, I have the ability to back down if my inspection doesn't come up to par.
 

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I am in the market to purchase my first house, and my mortgage guy said I might as well get pre-approved for everything on the market including a HUD home.

I actually found a nice HUD house, and went in at full asking price. In todays market and the house being a HUD what do you think the chances of someone bidding more than the asking price?

It is a steal at what they're asking, and I figure a full asking price in todays economy should get it, but at the same time Im wondering if I should have bid more. It's a tough decision because I feel like Im either going to kick my self when I over bid a lot or I lose the house by a couple grand.:lol:

Anyone have any input? I find out this coming Monday.

Thanks, Brian
We bought a foreclosure home.There more than you think.If your a 1st time buyer you can get a VA loan.Thing is when buying a home like your saying is repairs.You have to escrow 150% of any repairs that need to be done.Then have to money to repair.NOT THE ESCROW thats put away.So you see it could add up real fast.Far as making an offer on the home.I would low ball big time.I would not never offer what they are asking EVER.We saved 20 k on our place by biding.I was scared to lose it cause it was on the water.But we got it.And it was wy before the way things are now.I would withdraw my offer asap if you made one,Mich
 

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hud homes are different as no 1 )online bid cannot retract ! and he bid on fri hud (mcb) so wont know till 4pm mon if was accepted . 2) any bid within 90% of asking price will be accepted 3)any repairs hud pays for it thru escrow and is added to buyers financing to be accepted under fha guidelines 4) thru fha first time homeowners program purchasing a hud home the buyer only needs 100 down ! closing costs are paid by hud and all repairs are included in financing va will not pay for repairs or any bank owned homes making this truly a good buy hud also has a complete inspection already done and a recent appraisel which can be used by the buyer .HUD websight look at www.mcb.com hit mich link then read first page or click on county to look at homes in your area
 

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I bought a HUD house about 7 yrs ago. They had a starting price and I went a few thousand over that. I had the same feeling, I didn't want to lose the house over a couple grand. I didn't have it inspected. When I bought it the water/gas/electric was all turned off and nobody had lived there for about a year. I went on the knowledge (limited) on all these things and put in a price that I felt if I had to do any work, the house would still be a good deal. I also went 0% down and saved me down payment for repairs, just in case. Luckily all I had to do was repair a few frozen pipes (pvc) and all was good.
 

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lots of hoops to jump through....

I bought a foreclosure and its a long process. The banks take forever and the bidding gets annoying. Don't expect to make an offer and hear on it the next day. I have a friend that had an offer accepted on a foreclosure 6 weeks ago and he still hasn't closed because the bank is dragging their feet.

Best of luck and look at lots of houses before making a decision.

edit - offer a fair price. Some people say to bid X amount below asking and thats kinda silly. Find out what the home is worth by pulling comparable homes that have sold and closed in the past 90 days and make your offer accordingly. Don't forget about the price of the repairs and such. Good luck
 

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I am in the market to purchase my first house, and my mortgage guy said I might as well get pre-approved for everything on the market including a HUD home.

I actually found a nice HUD house, and went in at full asking price. In todays market and the house being a HUD what do you think the chances of someone bidding more than the asking price?

It is a steal at what they're asking, and I figure a full asking price in todays economy should get it, but at the same time Im wondering if I should have bid more. It's a tough decision because I feel like Im either going to kick my self when I over bid a lot or I lose the house by a couple grand.:lol:

Anyone have any input? I find out this coming Monday.

Thanks, Brian
Don't buy it!!!

My friend asked me for advice earlier this year...I told him don't buy. You think the market is good for buying today? Wait until mid 2009 and prices will be even lower. Alot of changes still occuring in the economy.

HUD websight look at www.mcb.com hit mich link then read first page or click on county to look at homes in your area

Here is the site:

http://www.mcbreo.com/st_mimain.htm
 

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I also say don't buy it. Why not buy a home that is already completely refurbished with warranties on everything? That way, if anything were to go wrong you are all set! This home is in existance and is selling for 79,900.00! YES I said 79,900.00!!! Move in ready, just bring your furnishings! To goog to be true right? WRONG! Here's the link....

West Michigan Home Construction - Karasiewicz Construction
 

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Wow!
And I am sure you were out front of the housing slowdown telling everyone to SELL SELL SELL!
Please. You don't know what the housing market will do over the next year anymore than you know when you will take your next dump.



Don't buy it!!!

My friend asked me for advice earlier this year...I told him don't buy. You think the market is good for buying today? Wait until mid 2009 and prices will be even lower. Alot of changes still occuring in the economy.




Here is the site:

http://www.mcbreo.com/st_mimain.htm
 

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you have to live in a hud house for 5 years or something like that before you can sell it right?
 

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Wow!
And I am sure you were out front of the housing slowdown telling everyone to SELL SELL SELL!
Please. You don't know what the housing market will do over the next year anymore than you know when you will take your next dump.
I now know the answer to the second half of your statement! :lol:
 

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Wow!
And I am sure you were out front of the housing slowdown telling everyone to SELL SELL SELL!
Please. You don't know what the housing market will do over the next year anymore than you know when you will take your next dump.
No, but I was telling my parents to sell before the housing slowdown.

You want to buy a house in a slowing economy, that's your prerogative.

Go take a gander at the news big shot. It doesn't take a Realtor or Real Estate Appraiser to see the economy in MI is headed for horrible times ahead.

All the layoffs in the region, and once people exhaust their unemployment bennies the prices will fall even more from increasing foreclosure rates.

My buddy that I told to wait...he didn't. He bought the house...guess what? His house has already lost 5% of it's value.

The unemployment rate in MI is sure to top 10% soon. If it was me and I was graduating today...I would rent until I felt things were beginning to turn around.

Perhaps you should read the news a bit more:

http://www.mlive.com/annarbornews/business/index.ssf/2008/11/econ_summit.html

Key points from the University of Michigan economists' forecast for the state:

• Michigan will lose another 132,000 jobs by 2010, marking the 10th straight year of net job loss.

• Job losses will be concentrated in the manufacturing, construction and professional/business services sector.

• The education and health services sector is the only major area that will gain jobs in the state, to the tune of an additional 22,000 by 2010.

• The market share of auto sales held by the Detroit Three will dip to 41.2 percent in 2010, down from 50.4 percent in 2007.

• The state's jobless rate will hit 10.5 percent in 2009.

• The local rate of inflation is expected to be only 1 percent in 2009.

• Personal income will grow by a weak 0.7 percent in 2009.

• Building permits in 2009 will fall below the low-water mark set in 1982
 

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All true and none are valid reasons not to buy a house right now if you have the means and you are ready to buy. I'd rather be buying a house then selling a house in a slowing economy.
If you are buying a house to sell in a year then I'd say its a bad buy. If you are buying a house that you intend to stay in for 5 - 7 years or longer, buy now, and you'll be very happy in 5 - 7 years.



No, but I was telling my parents to sell before the housing slowdown.

You want to buy a house in a slowing economy, that's your prerogative.

Go take a gander at the news big shot. It doesn't take a Realtor or Real Estate Appraiser to see the economy in MI is headed for horrible times ahead.

All the layoffs in the region, and once people exhaust their unemployment bennies the prices will fall even more from increasing foreclosure rates.

My buddy that I told to wait...he didn't. He bought the house...guess what? His house has already lost 5% of it's value.

The unemployment rate in MI is sure to top 10% soon. If it was me and I was graduating today...I would rent until I felt things were beginning to turn around.

Perhaps you should read the news a bit more:

http://www.mlive.com/annarbornews/business/index.ssf/2008/11/econ_summit.html
 

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if he doesn't buy, he might just have to spend money on rent.... which can easily be 800/month.... for another year thats 9600 bucks which would equate to a lot of money. also, if he makes decent money at all, he can't even count rent against his state taxes, which means he won't be able to use the interest tax reduction of a normal mortgage..
 

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:yeahthat::yeahthat:
All true and none are valid reasons not to buy a house right now if you have the means and you are ready to buy. I'd rather be buying a house then selling a house in a slowing economy.
If you are buying a house to sell in a year then I'd say its a bad buy. If you are buying a house that you intend to stay in for 5 - 7 years or longer, buy now, and you'll be very happy in 5 - 7 years.
 

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you have to live in a hud house for 5 years or something like that before you can sell it right?
1 or 2 years i forgot or i should quit trying to post at 2 in the morning :dizzy: look on the link www.mcbreo.com tell you everything ya need thanks usmarine for correction ! boooyaaa
 

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buying a house to flip is probably a bad idea right now.

I bought a house in June. My house may go down 5-10% in the next year or two, but I don't plan on moving then. Its also the house I wanted at a price I was comfortable with. It was also much better than the alternative (living in some apartment and wasting my rent money). Plus in the meantime I've gotten to live in my HOME.

I tell this to many of my customers when they worry about what they'll be able to sell for in a year or two - "its a HOME....not a piggybank. Its where you celebrate Christmas and Birthdays...."

Just like the stock market....long term baby!
 
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