Examine your reason for purchasing this property.
If the home is your dream home you may want to bid more than if it is not. If you going to use the property as a long term rental you may be willing to pay more than if you are purchasing to resell the property.

Estimate current fair market value.
• Identify the current appraised value. This is referred to by HUD as the 'as-is' value.
• Identify the current assessed value of the property.
• Identify the amount which was owed on the property when it was foreclosed on.
• Identify the date of the most recent sale.
• Complete a market analysis by identifying comparable properties.
• Determine the average percentage of sales to list prices for which properties in your area are selling.

HUD Home Advisor has collects and maintains all of this information for every HUD home.

If you do not already have a broker, we can help provide you with a HUD specialist in your area. Learn more.

If the property is priced right, the blind bidding during the owner-occupant bidding period can be very competitive. In many markets, the property may sell for more than the list price.

If you are an investor, you will make your money when you buy properties not when you sell.

If a property is not clearly a great buy, wait it out!

If you pay more than the appraised 'as-is' value and wish to obtain FHA financing, the difference between the appraised 'as-is' value and the purchase price must be paid in cash.

Weigh the above information against your needs, goals and objectives to determine a number of how much you might be willing to pay for this property.

REMEMBER THAT THE HIGHEST NET TO HUD WINS THE BID (Line 7 form 9548)!

Ask yourself, "If I bid this amount and get outbid would I say, 'I should have bid more' or, 'It wasn't worth that to me?'"