Kathy A. Torline-Nordstrom
Cherry Creek Properties, LLC
Serving Colorado Springs
Do HUD properties sell for 50% of their Listing Price? NO
Some of my best blog ideas come from phone calls I receive; and on Friday I received a call from a potential Colorado Springs Real Estate investor. He said he had seen some infomercials on TV that said you could buy HUD properties for 40% to 50% of asking price. I told him that hadn’t been my experience in Colorado Springs, and I typically didn’t see HUD accept bids less than 90% of asking price.
He thought if he could buy something for 50% of asking price, that he’d purchase properties, and just turn around and put them back on the market. The infomercial he saw was talking about homes in Ohio where many people were doing this. While I have no market knowledge about Ohio properties, I certainly do understand the HUD market in Colorado Springs, and I haven’t seen anything get sold for 50% of the Listing Price. After doing some quick research on the MLS, here’s some facts for Colorado Springs HUD homes that have sold in 2012.
Average Listing Price: $112,408
Average Sold Price: $109,403
Average days on Market: 51
I didn’t see anything that sold for less than 90% of the Listing Price. The infomercial may or may not make sense for homes in Ohio, but it certainly doesn’t work for HUD homes in Colorado Springs.
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