Are you looking for ways to get a good deal on a house? Maybe you’re looking for your first property or rental investment. There are many proven ways to find these diamonds in the rough. Keep reading to learn how.
Foreclosures
Many people live beyond their means. They run out of cash flow during tough economic times. If they’ve stopped paying their loan, the bank will foreclose on them.
Every 7-10 years there is a large recession that causes these homes to all hit the market at once. The loan holders want to get rid of them as fast as possible. This makes a superb opportunity for someone with the right mindset.
Look in cheaper areas
Some areas like the Midwest have inexpensive property. The cost of living is very low there. Job opportunities are also abundant. This makes it easy for people to afford their rent payments.
Many homes in the Midwest are available for under $100,000. Payments are lower when the property’s price is lower. Cash-flow easier to achieve with low mortgage payments.
Make sure that the area you’re investing in has a growing job market. This is a major factor in real estate value.
Short sales
A short sale is when a distressed seller is behind on payments. They owe more than the property is worth. An example is if someone owes $300,000 on a $220,000 house.
They may be willing to sell it to you for below $220,000 if you assume the responsibility for the property. Not all banks will approve a deal below market value. It is a numbers game like everything in business.
The only downside is you must be patient since you’re waiting on the bank’s approval. They are notorious for being slow-moving.
Fixer-uppers
You should learn the difference between a structural and cosmetic issue. You should stay away from a home with a cracking foundation.
But a house with old carpets and pealing pain can be a steal. Even a house with an older roof can be a great deal if you can use it to bargain down the deal. Repainting cabinets often makes them look like new.
Fixer-Uppers are every investor’s secret weapon. Most homebuyers just want to move into their dream home. A few thousand dollars in repairs can increase the value of the home by tens of thousands.
Ask your network
Sometimes you’ll have a relative or friend of a friend who wants to sell quickly. They may have a death, divorce, or have changed jobs.
You can come along and offer them a sale with no hassle. Many times they don’t care about getting the full price of the house. It also saves them money since they don’t have to pay an agent commission.
Knocking and sending letters
Sometimes you get lucky and find a stranger who wants to sell. Maybe they have a personal issue. They might just be sick of the property.
Look for properties that could use a slight facelift. You can ask if they’ve considered selling their home. If they are, you can ask them what they think the property is worth.
Checking the MLS
If you are an agent or know one, they can keep an eye on deals in the MLS. Look for properties that just hit the market, or have languished there for months. The seller has less bargaining power if the home has been listed for many weeks or months.
Effective ways to find cheap houses for sale
Patience, digging deeper, and some detective work will help you find good deals in any market. Finding a great investment takes some initiative but it is well worth it.
