My Realtor keeps steering me away from foreclosed HUD homes? - Woodworking Talk - Woodworkers Forum
 
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post #1 of 10 Old 10-08-2015, 07:38 PM Thread Starter
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Question My Realtor keeps steering me away from foreclosed HUD homes?

So what is the big deal anyway? My Realtor says itís because itís so difficult to buy one due to all the regulations and red tape.

I understand that some are in neighborhoods that arenít very nice and maybe a little dangerous, but I found two places with over an acre of land with fantastic views and very limited neighbors. Plus there is already a great shop on both properties. The houses are a little small and my wife doesnít like them much, but I can always add-on if I have a large shop.

I have to say that there is one place that I really like and I think if it is still available after I save up enough to pay cash, I just might buy it. I may have to keep my house in CA so my wife will be happy and live in my man cave alone although she swears she will live anywhere I live. LOL

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post #2 of 10 Old 10-08-2015, 08:08 PM
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Following the money, here are some thoughts....

Consider two deals for the same house in the same place.

In A, the house was foreclosed and is offered as a HUD deal. In B, the owners packed up, and listed the home in the MLS in a straightforward way.

1. Compare the % commission in your area for the two approaches.

2. Would asking price for this house be the same either way? What about the actual closing price?

3. Given the extra paperwork for the HUD deal, compare how much work and time would your realtor have to invest in order to get paid?

I'd be interested if they think its best for YOU to streer clear of HUD homes, or best for THEM?

If it jams, force it. If it breaks, it needed replacing anyway!
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post #3 of 10 Old 10-08-2015, 10:48 PM Thread Starter
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Following the money, here are some thoughts....

Consider two deals for the same house in the same place.

In A, the house was foreclosed and is offered as a HUD deal. In B, the owners packed up, and listed the home in the MLS in a straightforward way.

1. Compare the % commission in your area for the two approaches.

2. Would asking price for this house be the same either way? What about the actual closing price?

3. Given the extra paperwork for the HUD deal, compare how much work and time would your realtor have to invest in order to get paid?

I'd be interested if they think its best for YOU to streer clear of HUD homes, or best for THEM?
I've been wondering if it just might be that the Realtor wants more of the easy money.
I already made an offer on another place with this guy and I felt he wasn't working in our best interest. I liked the place, but I thought it was a little high for the area then when the the seller decided not to sell I saw estimates much lower for the same place.
I may be looking for another Realtor.

JohnnyB
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post #4 of 10 Old 10-09-2015, 11:22 AM
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HUD home transactions aren't really all that different than a regular MLS listing except that they are foreclosures, which means added risk. Anytime a home is vacant, it introduces a lot of potential problems including maintenance issues, squatters, vandalism, etc.

Realtors value their time like the rest of us. If he thinks he's wasting his time, he'll probably steer you away. That may be because he thinks it will sell before you get a chance, that you'll not buy because of certain conditions or that the price is just not low enough. Unless your Realtor is a very, very small operation, it's likely that he'll be handing off most of the final paperwork anyway, but it's labor intensive for him to submit bids. I wouldn't really blame him for not wanting to "enter a losing battle", but he should be communicating that with you. Don't be afraid to shop around if you're not getting the service you want. A lot of realtors are only part time anyway and try to juggle it with their day jobs, family life, etc...
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post #5 of 10 Old 10-09-2015, 04:00 PM
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Years ago had dealings with some realtors in my area after I exited the military but still looked like a 16 year old school kid. Realtor agent claimed I "was not old enough and could not afford the foreclosed property" I was interested in. As luck was with me, I found a better piece at a much lower price and bought it. Found out from another agent the first realtor wanted the property for herself, intending to sub-divide it for many houses, but zoning would not allow that to happen. She was "stuck" with it for many years, finally selling it a lot less than she paid for it. Consider changing realtor agents - one that will work with you, NOT against you. Be safe.
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post #6 of 10 Old 10-09-2015, 04:21 PM
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One of the problems with trying to buy a foreclosed HUD homes is it can take up to a year or longer to go thru the closing process..... That is one reason your realtor is trying to steer you away from trying to buy on in my opinion.
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post #7 of 10 Old 10-09-2015, 05:53 PM Thread Starter
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One of the problems with trying to buy a foreclosed HUD homes is it can take up to a year or longer to go thru the closing process..... That is one reason your realtor is trying to steer you away from trying to buy on in my opinion.
Oh! Well he did say something about needing to live nearby because they only give you a short amount of time to give them a Certified Check by 3 PM and no other form of payment. It would take me 5 to 6 hours to make the drive after being notified and maybe that's what he meant by having to be local.
It just blows me away that the GOV would make it so hard to sell a house to get their money back.

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post #8 of 10 Old 10-09-2015, 06:01 PM Thread Starter
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... Consider changing realtor agents - one that will work with you, NOT against you. Be safe.
Well I've been talking about it with my wife and I ready wasn't happy with the guys attitude after I signed all the papers to put an offer in. And now that the original offer fell through, I haven't heard a word about any other listings from the guy. I think I may contact the Realtor from the original listing from now on.

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post #9 of 10 Old 10-09-2015, 09:16 PM
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It sounds like your realtor is lazy or looking for a higher commission. I just purchased a home, and my realtor was ready to be accommodating with a HUD foreclosure. She really put a lot of work into helping me with one I was looking at, unfortunately it had a few too many problems and I had to pass on it. The one I went with was a breeze to get closed on.
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post #10 of 10 Old 10-13-2015, 02:27 PM
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I bought my place back in 2007 and it was a foreclosure. It was simple for me to close on and my realtor really helped me out along the way. Sounds to me like your realtor just doesn't want to do the work.

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