Critical Steps for Finding House Bargains in the Current Market
There is little doubt that right now is an excellent time to find some
bargains in the housing market, but only if you know what to look for
and only if you have the money available and you are willing to hold
onto the home for at least five years. One of the biggest questions that
many homebuyers have is whether they can be really sure they are getting
a bargain or whether it is possible that prices will drop even more if
they wait a little later. While it is always possible that prices might
conceivably drop more, many homes today are selling for more than 10%
below the posted asking price. If you want to be sure that you are
getting a good bargain on your next home purchase, there are a few
tactics to keep in mind.
First, remember that you absolutely must be patient when you are
searching for a bargain in any market and particularly in this market.
This is not a market in which you can zip in and purchase a home
overnight and be content that you are getting an excellent bargain. Take
the time to browse the Internet to find out what is available. Perhaps
the best way to find a bargain is to be willing to perform research.
When researching homes on the market, try to identify properties that
have been on the market for at least 90 days. These are usually the
homes where sellers will be more willing to accept a lower price. When a
home first goes on the market, sellers are usually less likely to accept
a price that is lower than the asking price. If they are forced to wait
90 days or more they generally become more anxious sell and are
therefore more willing to negotiate.
Many people consider buying a fixer-upper if they are looking for a
bargain. A home that is in need of repair can certainly be inexpensive
but you will never really know whether you have bought a true bargain
until you get into the home. Fixer-upper properties are notorious for
delivering surprise problems that can ultimately end up being expensive.
Therefore, it is usually a good idea to make sure that you keep your
bids low on such properties, just in case you find out later that the
repairs needed are more involved and expensive than originally thought.
If you do find a home that is deeply discounted, be prepared to move
quickly because your bid will likely not be the only one. Homes that are
heavily discounted are far more likely to sell much faster.
Another way to find a good bargain when shopping for a home in this
market is to look for flippers that are desperate. At one time flipping
properties could be highly profitable, but many flippers have found
themselves in dire straits. As a result, a large percentage of those
investors are now looking to unload their properties and get out from
under the mortgage as quickly as possible. One way to find flippers who
may be willing to sell at a lower price is to search through property
tax records to find out when the last time that a property changed
hands. Look for changes that occurred recently and you could have a good
lead on a bargain.
When it comes to properties that have been recently remodeled, it is
usually a good idea to pass on them. Most homes that have been recently
remodeled are actually still able to command a high dollar price because
buyers know the value of the renovations in most cases. If you are
looking for bargain properties, homes that have been recently remodeled
usually are not going to be your best option.
Finally, remember that when it comes to bank owned properties, you
should not expect much of an opportunity to negotiate a lower price.
This is usually because the bank must get a certain amount out of the
property to avoid taking an even further loss. This means that the
listed price is usually about as low as the bank can afford to go on the
property. In addition, although you might think that it would be just
the exact opposite, banks can be notoriously slow when handling such
Taking the time to do your research as well as understand a few critical
elements about the current market can help you to easily identify
bargains that are worth your time to consider.