Many people would like to get their hands on a real estate bargain but are unsure of what to look for. Real estate prices are still down almost universally and there are bargains to be had for those who look. You can’t do better than a motivated seller who is trying to skip town. Indeed, an ideal target time to buy is when you encounter an older person stick in a Northeast winter who wants nothing more than to sell their home and move on down to Florida. True, it isn’t always as easy as this to score a great deal on a home but deals are everywhere. Here are a few places to look for real estate bargains:
1.) Auctions- When homes are repossessed by the bank they will usually go up for public auction. In these cases, the bank is looking to recoup some of the money it was losing when the homeowner failed to make their mortgage payments. Indeed, you can find homes going for about 60 to 70 percent of their true value just by attending these auctions and getting in on these distressed properties.
2.) Short Sales- In a short sell, the bank is often willing to take far less than a property is worth. The key here is that you have the capital and the patience to wait out the process. The bank is left to decide when to sell the home and they may wait for a better deal than the low ball offer you present them with. If you have the patience, make that offer and see if they take it. It’s important to keep in mind however that short sales can have some damage to the property and they are sold on an as is basis. Make sure to have an home inspection done to see the extent of the damage before commiting to purchase.