Purchasing your own piece of real estate is one of the most significant investments you as an individual can make. It is probably going to be the most expensive item you will ever buy. This means that it is not something that can be done on a whim. It has to be something given its due level of thought. Unfortunately, the sad truth is that owning a home is nothing but a far-away dream for a lot of people these days. The lengthy mortgages and the high deposits needed to get you on the property ladder can push owning real estate out of some people’s reach. The maths simply does not add up. However, there are ways and means to purchase property at lower than the ordinary price, which may make life just that little bit more manageable. It may take longer, and you need to be prepared to put in the hours, but once you find that perfect place, you’ll never look back.
Here are some tips on purchasing cheap real-estate:
Research
The first thing you need to do is spend the time searching for properties online and going to real estate agents. It may even be worth your while looking for property auctions, sheriff’s auctions, and private auctions, as you may be able to find something really cheap there if you have the capital. There may even be some scope to purchase directly from the bank. However, this is usually if you are prepared to buy more than one property. In this scenario, it may benefit you to think outside the box, do you have any friends or family members in the same position as you? Perhaps you could club together and you never know you might strike gold. So, ensure you follow every potential avenue available to get yourself that cheap home.
Do not confine your searches to any specific location, widen your search area. Extend it to beyond the cities into the suburbs and further. Then ensure that you sort the listings into order of prices going from lowest to highest. A lot of real-estate search engines default from highest to lowest, so remember this simple tip. If you have a wide enough search area it will enable you to gather a good understanding of the regions which are high value and the ones which are lower value. Then you can begin to focus your search and potentially pick up a bargain. Look every day and make a lot of inquiries. In this situation, quantity over quality is the aim.
Get out there
If you want a bargain, then you need to put in the leg work. You need to be prepared to go out there and look at a lot of houses. Contact as many agents as you can and book various appointments with one agent on one day. The more you see, the more you will understand the market, limitations with regard to your budget, and the parameters in which you will be working, in terms of quality, location, and work. Take photos and make notes as you go along, as you are going to need information. Ask the agent questions. Again the more you see, the more questions you will be able to formulate. You will know what you want to ask. In your own time, get out into the area where the properties are and investigate. Get an idea of the average asking price to see if it is a bargain. If you don’t look, you will not find your diamond in the rough.
Look for foreclosures
One man’s loss is another man’s gain, or so the old adage goes. But, if you want to get something cheaply, then this is the way to do it. What you need to look for are properties that are REO or Real Estate Owned, anything labelled in this way means that the bank has foreclosed the mortgage on it and repossessed it and sold to the agency. This is a great way to buy as there are no homeowner’s and the bank no longer owns it. The realtor sees this as nothing more than average day-to-day dealing. Purchasing a foreclosure could land you a great bargain.
The fixer-upper job
This could be a great way to purchase a cheap home. The reality is a home which needs a lot of work doing to it can be sold at a much lesser value than the work itself would cost to conduct. If you are a DIY kind of person, then the benefits could be exponential. Alternatively, working with a trusted contractor is the way to go. You could do a bit at a time as your money comes in. Sometimes all these homes need it a little bit of TLC. A lick of paint and a lot of things sent to landfill. All you would have to do is use a commercial bin hire company and the house could be back to normal in no time. However, usually, it is not that easy. These homes do come with some risks attached to them, so do get the place inspected by a professional, if there is too much structural damage, for example, it may not be worth it. But, if you are looking for a bargain, these are the types of homes to look at.
Bid low offers and negotiate
When you want to bid low, take a look at the time the home has been on the market and if it has already had price reductions. They may not have reached their bottom ceiling, so there is no reason not to offer low. Especially if you have a maximum price, what’s the worst that can happen, they say no. You can bid a thousand low offers, perhaps only one will come to fruition, but that is all you need. Be bold, bid low and negotiate, and do not be afraid to lose the deal. It is like a game of poker. Have your game face on.
As long as you are prepared to put in the leg work, you never know what you might get. You get what you invest time in.
