House Bargains - Investing Planning

You Can Find House Bargains On Your Own

Websites have sprung up over the years enticing visitors with tales and accounts of buyers snagging a foreclosed home for just pennies on the dollar. Usually, these types of sites promise the same for you if you choose to register with the site for access to their exclusive list. Let me tell you something important: these lists are neither exclusive nor are they usually accurate. Instead, they can be full of false promises and half truths. On the other hand, you can find bargains on houses if you do some legwork on your part. Read on and we'll look at some ways you can save on a home purchase.

For argument's sake, we'll consider a house bargain to be anything that is being sold for 5% or more below the home's value:

Check the HUD listings. The U.S. Department of Housing and Urban Development or HUD is one source that lists homes, sometimes for prices well below market value. Visit their site for a chance to purchase a home at a reduced cost.

Visit FSBO sites. FSBO homes often sell close to market value, but a FSBO home could go for less when a seller is in the mood to sell. He can cut you some slack because no real estate commissions are involved. Buy a Distressed Property. Before a home is foreclosed, notices of pending foreclosure are often published in local newspapers or listed at the county's tax office. Perhaps you could be the "white knight" who steps in with an 11th hour deal to save the buyer the embarrassment and hassle of foreclosure!

Cozy up to Realtors. Real estate agents know the market and sometimes are quick to drop a hint when a seller is desperate to move a piece of property. Divorce, job loss or relocation, illness, and other factors can play in when a person is in a desperate situation. No, you probably won't save a bundle, but you may be able to shave off several thousand dollars from your bid proposal.

Get a Fixer Upper. These days it is can be difficult to find a bargain with a fixer upper. Somehow, the owner feels that they should still receive market value. If the home has sat on the market for several months, expect that the owner has already dropped his price at least once. Come in with an offer below the second price and save.

So, avoid the gamesmanship played by the websites, infomercials, and seminar hucksters. Get to know your market and search for bargains until you find one. Place your bid as soon as possible then hope for the best!