I looked for some other threads regarding this, but didn't come up with anything. Soo... anyone with experience in the industry, please lend a hand.
I'm looking to buy a HUD home. List is $85,000. I'm planning to offer a massively low bid as there have not been other bids on the property (which is typical around Detroit - the house is in Royal Oak). I'd like advice on how low to offer. The Realtor recommended $75,000 (but she gets paid on how much it sells for). I was thinking $65,000. Some people have suggested as low as $45,000, but that seems too low. I don't want to waste my time, but I also don't want to pay too much.
Also, I've read a variety of information on POC (paid outside of closing) fees being unnecessary. I've added a link to the good faith settlement estimate below... can anyone decipher where I should ask for a better deal? This is assuming I take $85k which is list. This WILL NOT happen.
Lastly, I'm going FHA (despite VA possibly having a slightly better rate) because I can take 203k loan riders for some repairs. The house is in good shape. Foundation is great. Only major known issue is plumbing... water connection is broken. There is POSSIBLY a mold problem. I'm currently using a home testing kit to get a rough idea. Will have the inspector do a thorough mold test after I get an accepted bid. Thanks!