Rich Cederberg's Albuquerque Real Estate Blog

Here's my Albuquerque HUD home Update for August of 2009.

The number of HUD homes available has increased dramatically (close to 65%) the last two months. Even so, there were only 19 HUD Home closings in July and August.

There were approximately 600 closed sales in the Albuquerque area. HUD homes accounted for only 3% of the total sales.

The average days on the market for HUD homes was 32 days in August.

Compare this to average days on the market for the overall Albuquerque Real Estate Market-80 days, and it's obvious that HUD homes sell quickly.

View Albuquerque HUD Homes for sale 

View Albuquerque REO Homes for sale

Albuquerque Real Estate Market Report for August 2009

There are different types of foreclosure properties. In this post I'm going to answer some FAQ's about one type of foreclosure homes, Albuquerque REO homes.

What is a REO ?

REO stands for Real Estate Owned, meaning owned by the bank. The bank has foreclosed and now holds title to the property.

What are the advantages/disadvantages of buying a REO home?

One advantage of buying an REO is that you can get a great price. Once the bank owns the home they want to sell quickly and eliminate the inventory from their books. The main disadvantage is that the bank will not usually complete repairs for you.

Who can buy a REO?

Anyone who is qualified can purchase an REO whether they plan to occupy the home or rent it out.

How do you buy a REO?

Buying an REO is like buying a non foreclosure property that's listed on the MLS. There is no online bid, like with a HUD home, and there is no long waiting period like on a short sale.

How much do I offer?

You should offer close to where the price is listed. Lowball offers don't usually fly because the banks price is probably already a good deal.

The number of REO's in Albuquerque is increasing. I just did a search and found 130.

Contact me for a complete list of current REO listings.

There are different types of foreclosure properties. In this post I'm going to answer some FAQ's about one type of foreclosure homes, Albuquerque HUD homes.

What is a HUD home?

A HUD home is a home that was originally purchased with a FHA loan backed by the US Department of Housing and Urban Development. The owner did not keep up with their payments, so the lender foreclosed on the house. Now HUD, who insured the loan, owns the home and needs to sell it to recover their money.

What are the advantages/disadvantages of buying a HUD home?

HUD homes are offered at the as-is FHA appraisal price. So the homes are priced very reasonably to sell quickly and usually do. most within 30 days. However, HUD homes are sold in as-is condition and no guarantees are given as to condition or even zoning code. You can and should have your own home inspections done, but they will be for your information only. HUD will not do repairs for you.

Who can buy a HUD home?

Regular Homeowners or investors can purchase HUD homes, but preference is given to owner occupants.

How do you buy a HUD home?

Any licensed Realtor can help you locate a HUD home to purchase, but the process of buying a HUD home is different than buying a resale home. Bids are made by HUD registered brokers-like me-online. The bids are made blind, it's not like an auction where you can see what others have offered.

Initially, HUD homes are offered for a ten day opening bid period. If HUD has not received an acceptable offer after 10 days the house then goes to day-to-day bidding.

How much do I offer?

In most cases HUD homes sell for very close to list price. Lowball offers don't fly. HUD Would rather keep it open for bidding on a day to day basis for about a month, after which they will reduce the price from 10% to 15% to bring a quick sale.

Neighbor Next Door Incentive

If you are a firefighter, police officer, EMT or pre k-12 teacher and you are willing to purchase a home in a designated revitalization area, you can be eligible for a 50% discount on the price. Yes, a 50% discount!

The number of HUD homes available is increasing, however, in July 2009 only 12 HUD homes closed in Albuquerque, so there are still not that many opportunities  

Contact me for a complete list of current HUD homes on the market.

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Here are some interesting facts about Albuquerque HUD Homes.

• I have tracked 27 closed HUD homes from January 1, 2009 to June 30, 2009. (I have tracked detached homes in the city of Albuquerque only)
• 15 were in SW Albuquerque, 7 were in NE Albuquerque, and 5 were in Northwest Albuquerque.
• No one selling broker or office has sold more than any other. One agent has sold two.
• Pricing and the timing of price reductions is very predictable.
• HUD homes are priced considerably below market value already, so low ball offers do not work.
• There are currently 29 HUD homes in pending status which suggests the wave of HUD homes predicted for the 3rd quarter of this year may be coming true.

Here are a couple of the Albuquerque HUD Homes currently for sale:

Location: SW Albuquerque

Square Feet: 1546

Bedrooms/Baths/Garage: 4/2/2

List Price: $95,000

Location: NE Albuquerque

Square Feet: 1131 (plus additional unheated sq ft)

Bedrooms/Baths/Garage: 3/1.5/1

List Price: $133,000

These are just two examples of awesome homes available for less than market value. To make an offer on these homes you need to use an Albuquerque HUD Realtor like myself. For more information email me at Rich.Cederberg@TopProducer.com.

Visit www.BeautifulNMHomes.com to search for these homes and others.