Cheap Houses?
Maybe you’re shopping around for houses, not wanting to dig
yourself the proverbial financial hole by paying too much. You
keep coming across homes that are very reasonably priced. Okay,
these homes are just downright cheap! Why? It’s important to
identify why that house of interest is on the market for so cheap!
The reasons may vary and knowing what they are, and what they mean, can possibly save you thousands when buying your next home!
I’ve compiled this list of the six most common reasons you may find
a house selling for less than others of similar structure and size.
Questionable Neighborhood
You can almost always find heap houses in bad neighborhoods, but
are they a good buy? Not if the neighborhood is declining – that
could be the worst investment in town. In a real estate forum
recently, an investor explained how he had to sell his British
Columbia rental house for a loss after twenty years of owning it
(who says real estate always goes up in value).
On the other hand, if there are clear signs that the neighborhood
is improving, a cheap house there could be a great investment for
you! By the time improvement is noticeable, things are usually
changing fast, so you might see a huge jump in the home’s value in
a few short years.
Homes That Need Work
You may need to pass on by these cheap houses, if you don’t want to deal with getting things fixed. Of course, these homes are often a
way to build equity fast. Since they scare away most buyers, there
is less competition and often a real opportunity for a low price.
However, a seller may think that if it needs a $10,000 in repairs
it is worth just that much less than others. Don’t buy this
reasoning! Dealing with a fixer upper for no gain is no deal. If a
home needs $10,000 in repairs, it had better be worth $20,000 more
when you are done.
Sellers That Need To Sell Fast
If a seller needs to move soon, or has to sell quickly for any
other reasons, make a low offer. I’ve found some great houses
listed on the foreclosure Insiders Club because the owner has
experienced some kind of financial adversity.
Don’t assume you’re taking advantage of someone in this situation.
You might not buy the home otherwise, right? The seller can always
say no. Perhaps it is worth it to him to sell for a few thousand
less to get it sold now before they miss more payments and it goes
into foreclosure. Why not let them decide if your offer is fair?
Cheap Houses With Hidden Problems
If you can’t find any other reasons why the price is low, there may
be hidden problems. This is especially true if a seller is an
investor, real estate agent, or seems knowledgeable about real
estate. Maybe there are foundation cracks hidden behind paneled
walls, or a highway coming through the front yard in a year.
Identify the problems. If they can be resolved, estimate the cost
to see if the house is still a good deal. Of course, if the seller
was hiding anything important, there may be more surprises, so have
inspection contingencies in the offer if you buy these types of
homes, and get those inspections done.
Unique Homes
I once lived near a house that was shaped like a flying saucer.
Some homes have insanely steep driveways. Others are built
underground. If the unique features they have are in demand, these
homes can sell for a premium. If not, they become cheap houses.
A home that is unique in ways that buyer don’t usually value will
be hard to sell, so it may not be a good investment. But what if it
fits your needs and you will be living there for a long time?
Suppose you pay $335 less per month to buy a “unique” home, and you live there for fifteen years. You’ll pay out $60,000 less in
payments. That could be sufficient compensation for a difficult
sale, right?
Low Priced Homes
Wouldn’t it be nice to find a seller who just doesn’t know that his
house is worth $220,000 – and he priced it at $180,000? Okay, this
is rare, but it happens. Actually that much of a deal may leave you
feeling guilty, but you certainly don’t have an obligation to
educate a seller or pay more than the asking price. He may have
other reasons for his price that you don’t know about (a wish to be
generous or a need for a quick sale?).
What’s the bottom line? When cheap houses are good houses, don’t
worry too much about the reasons. Sure, you’ll want to do your
homework and find out if the property is worth your time and
investment but worrying too much about “the reasons” may cause you to lose out on a potential money-generating property. If it’ a
good house, structurally sound, in an up and coming neighborhood,
just buy it before someone else does!
And don’t forget that you can find bargain properties through the
foreclosure Insiders Club where membership gets you access to
listings of pre-foreclosures in your area that owners may be
looking to part with for significantly less than the actual market
value to avoid foreclosure. Membership to the
foreclosure Insiders Club gives you the edge over non-members,
perhaps other home buyers, investors and realtors in your area, who
don’t have access to this information!
To Your Success!
Aiden Win
Mr. foreclosure
Hans Anderson
Private Rehab Hard Money Lenders and Credit Ratings Finding The Best Las Vegas Realtors
