Bank Owned and HUD LIstings

The final area (and number one area) that HZG employs when searching for a home is Bank Owned & HUD listings.

These listings are available for viewing and due to the large amounts of foreclosures in Ohio - the portfolio is plentiful. The main reason these are good is due to the availability to view prior to bidding. Agents that carry these listings are typically very seasoned and move fast to show you the product. The homes are typically vacant, and you can walk through at your leisure - no pressure.

Bidding on these properties unfold two ways. Back and forth and set pricing. The back and forth is your typical offer process. You start low, the bank comes back high...and you meet in the middle somewhere. The longer the home has been on the market, the more flexible the banks seem to be. I always recommend starting low on a home that's been on the market for a long period, or one that has serious issues. If the home is a fluke, a cream puff, bid as close to value as possible if you see the potential mark-up.

The set pricing is the bank (and HUD) that has a target acceptance pre-determined. The pricing is typically within 10% of list price. With HUD, we've seen a pattern forming where every 30-days the price drops 10%...then an offer within 10% typically gets it. Unfortunately, the homes listed with HUD have been priced unreasonably high.

Bottom line? Make sure you see the house and KNOW what you're looking to discover. It's not what you sell the house for that makes the profit; it's what you BUY it for.