Monday, August 30, 2010

Finding Cheap Property

Finding Cheap Homes

One of the best ways for discovering the cheapest places to live is uncovering cheap homes is through foreclosures. These kinds of deals on homes were rare and took a lot of digging to find in the past but today the real estate bargains available through foreclosures are abundant. A foreclosure is when a home is put on the real estate market to collect the debt which is owed by the previous homeowner and which he is unable to pay. It's sad but true that many people have lost their homes in this latest economic downturn and even more regrettable is the fact they lost their home due to no fault of their own.  When a homeowner is unable to keep up the payments on their mortgage, the bank or other lender closes the account and then tries to sell the property to recover what is still owing on the loan. Today the amount needed to pay off the debt still owing on a home is often much lower than the actual value of the house being sold. Someone who is in a position to be buying rather than selling is able to uncover very inexpensive deals. Discounts to the tune of thirty to sixty percent off a house's actual market value is realistic.

Finding Cheap Properties

Purchasing cheap properties in this manner is a great way to save money and realize a high profit potential because you are 'buying low' in anticipation of the market returning so you can 'sell high'. Now you know you have bought at a  bargain price but you need to be patient to achieve the high profit potential. This kind of investing is not for the impatient. Finding the cheapest house requires a significant search and that is where the internet can come in very handy. Whether you are searching for a single family house, a luxury property or a multi-unit property which is conducive to rental income there are numerous databases full of opportunities to buy  at low prices.

If your goal is to find a cheap property where the land is raw and has plenty of untapped potential than the internet will only be helpful as a preliminary research tool.  Yes, it's a good idea to surf and to get an idea of what is out there but know that you're only going to find property that has been listed by a Realtor.  And we all know if a Realtor is involved you are not going to get your best deal.  Afterall their responsibility and goal is to get as much as possible for the vendor and in doing so insure the highest commission possible for themselves. There is a built in bias to keep the prices up, in fact there is a bias to pushing prices higher because the more they can sell a property for the more they make. Now going through a Realtor isn't all bad, the realty is that's the way most people buy houses, but for finding cheap properties there are other ways which will save you money. The best deals on land never gets listed so you won't ever find them on MLS.

Country Property Dirt Cheap

Author Ralph Turner, who wrote, 'Country Property Dirt Cheap: How I Found My Piece of Inexpensive Rural Land' offers these suggestions for finding cheap properties without a Realtor:
  • Take a drive in the country and look for abandoned or neglected farms. Make sure you have a "plat- map" or even a good road map to carefully mark exactly where you see a potential property. Once you have a potential property or two you can go to the local land registry, usual located in the courthouse,  to determine who owns the properties you are interested in.  If the property appears to be abandoned then whoever holds the title may be interested in getting rid of it.
  • Rent a home in the area. Get to know your neighbours and and let them know you are looking for land.
  • Visit the local banks and ask the manager if he knows of or has any foreclosure properties for sale.
  • Find out if there are any land auctions in the area you are interested in.
  • Research surplus government land for sale and see if there is any available in the area.
  • Check out the local small papers - read the classifieds.
  • Place a classified ad in the local paper. List what you're looking for.
  • Go to farm, livestock and estate auctions and network. Meet the local people and see they know of any land for sale in the area.
  • Create a "land wanted" poster. Copy it and post it in local establishments.

No comments: