HUD Foreclosure "List Price to Sell Price Ratios"

Have you thought about buying a HUD foreclosure? Well you'll be glad that you read this article before you make that first offer. I was recently working with a client that was interested in buying a HUD property as an investment. When the time came to make the offer, I decided to do a little research to see if there was a formula that HUD uses when deciding how much of a discount off of the list price they are allowed to give to buyers. After surveying 115 HUD Homes that sold in Connecticut in 2013, this is what I found....

 

List Price to Sell Price Ratios

 

 

As you can see in my chart, there appears to be a formula that they are using to decide when & how much discount they are allowed to approve for buyers.

• Between 0-30 days on the market, buyers didn't receive any discount at all
• Between 31-60 days on the market, buyers purchased the properties at 90.57% of the list price
• Between 61-90 days on the market, buyers purchased the properties at 80.7% of the list price

So according to this chart, it looks like it's best to offer HUD just over 80% of their list price after the property has been on the market for between 61-90 days..... Your're welcome :-)

Real Estate Investing is all about the numbers, If you're interested in buying a HUD Foreclosure in Connecticut, and you want to work with an agent that will stop at nothing to get you the best price, Click Here to fill out a quick form and let me know exactly what you're looking for.