Are HUD Home Prices Negotiable?

Your offer may get accepted for a HUD home.

Homes that are offered for sale through the U.S. Department of Housing and Urban Development typically display attractive listing prices. Because HUD reflects the as-is value for most property listings, you can compare the list price to the property value. HUD homes are government-owned properties, acquired from homeowners who defaulted on Federal Housing Administration loans. You can review HUD homes and submit your most favorable offer.



Listings for HUD homes are displayed online. Prospective buyers can visit to view a variety of properties. Your selection of specific onscreen features will enable you to enter details such as the location, price range and the number of bedrooms you want. Listings also reflect the buyer type, such as an investor or an owner-occupant. After performing a property search, you can use the case number link to obtain the as-is value, repair escrow and additional information about the home.


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HUD homes are initially listed with a selling price. However, buyers who are interested in purchasing a HUD home must submit a bid via a registered real estate broker. Using online valuation services, as well as your real estate agent's price recommendation, you can submit an offer for a HUD-owned property. Generally, you can present a bid that is equal to HUD's full asking price, a bid that is below the asking price or a bid that is above the asking price. In a competitive real estate environment, a prospective buyer might bid several thousand dollars above the asking price to increase his opportunity of obtaining the home. Some buyers may also bid more than the listing price to seek closing assistance. For instance, a buyer could offer $3,000 over the asking price and ask for closing costs for a respective amount.


Bidding Process

An offering period is established for prospective buyers to submit a bid on HUD-owned properties. The winning bidder typically has presented the highest net offering price to HUD. Initially, owner-occupants are given the first opportunity to bid on HUD homes. Expired listings that remain unsold are typically re-listed for owner-occupants and investors to consider. HUD will notify your real estate professional if your bid is accepted.



Owner-occupants and investors who bid on HUD homes are competing with other prospective buyers. You might be able to negotiate with your real estate professional to determine a reasonable offering, which may result in a winning bid for a HUD home.