One of the many benefits to purchasing a HUD home, is that it is fair, no secret handshakes or pocket listings. Home buyers have an equal shot, based purely on price. Remember, investors can only bid after a property has been listed for 30 days. Owner occupants bid after 10 days. The winning bid, is calculated on net proceeds to HUD. This net value is after closing costs and broker commission. If you use an FHA loan, you can take up to 3% in closing costs. So, on a $200,000 offer, you can have a closing cost credit up to $6,000.
Instead of taking the full $6,000, you may want to adjust down by $50 to $5,550, this adjusts up the net to HUD up by $50. Thus giving yourself an edge when competing with the sealed bid. You can win a HUD sealed bid auction by $1.