Traditional home sales, foreclosure auctions and pre-foreclosure sales all offer you an opportunity to buy affordable homes in today's market.
Getting a good deal on a new home or investment property is possible in today's market because property values are lower in most parts of the country than they were five years ago. If you browse real estate listings in your area, chances are good you will see a number of bargain properties listed as traditional, foreclosure and pre-foreclosure sales.
Get free real estate listings now.
Pre-foreclosure sales provide affordable homes at discounted prices because the homeowners want to avoid foreclosure. If you buy a home during the pre-foreclosure period, you may get huge savings because the home is scheduled to be auctioned in a few months or less.
Another way to buy affordable homes during the pre-foreclosure period is through a short sale. In a short sale, the lender agrees to accept a payoff amount less than is owed on the home. Typically, the lender agrees to a short sale because the value of the home dropped after the homeowner bought it. Therefore, will pay tens of thousands less than the home sold for a few years prior.
You may also purchase a home in a foreclosure auction. You can buy affordable homes through an auction if you are prepared to pay a cash down payment or cash for the entire purchase. Typically, you need to show that you are pre-approved for a home loan if you only intend to make a down payment the day of the auction. Each state and auction has its own specific rules, so research the rules before you go to an auction. You will also be wise to research the home you intend to bid on so that you don't get caught in a bidding war and offer more than the home is worth.
When a home does not sell at auction, or get a bid that meets its reserve, then the mortgage lender or government agency that insured the home loan retains the property. This creates yet another opportunity for you to buy affordable homes. These homes, called real estate owned (REO) properties, are often sold below market value because the lender or goverment agency has thousands of properties on its books and does not want to maintain them. Be aware that when you buy affordable homes that are foreclosed, they are sold in as is condition and without a warranty. A home inspection will tell you if the property needs major repairs. It will also be necessary if you want to negotiate the selling price.
Because there are so many homes in foreclosure and pre-foreclosure, the prices of homes sold in traditional home sales are lower than they were five years ago. The real estate market is flooded with homes, so the demand is not driving prices higher as it was then.
To weigh the pros and cons of each type of home sale, you may want the help of a real estate agent. If you want to buy affordable homes in foreclosure or pre-foreclosure, look for an agent who specializes in these sales. Reply! is a wonderful source for real-estate professionals in your area who can provide you with real estate listings in every category.