For some people, finding the deal of a lifetime on the house of their dreams is a must. Though it can be difficult, and while it may require some time, effort, and serious determination, it can be done. Below, you will learn about three different ways to find your next home at a below-market price. Though not all of these options may be available in every area all the time, keep your eyes peeled for them because they could make your dreams come true.
#1 – New Homes in Vacant Areas
If you live in an area where homes are popping up faster than people can buy them, you may be able to find a below-market price on a brand new home. Look around for new subdivisions – or expansions on existing subdivisions – that contain many vacant new builds. The longer these homes sit empty, the less money the builders make, so over time, they may be willing to sell at a low, low price.
There are three factors to consider before spending your time searching for a new home in a vacant area. If your current area’s market is skewed toward the buyer, if you live in a place where the demand for new homes just cannot seem to catch up to the supply, or if you’re in a recession (nationally or even locally), it is absolutely possible to score the deal of a lifetime on a brand new house.
#2 – Foreclosed Homes
Unfortunately, the number of foreclosed homes popping up across the country is on the rise, and it has been for quite some time. However, if you want to get the best possible deal you may ever find in your lifetime, foreclosures are the way to go. When people default on their mortgage payments, the lender bank can take possession of the home. Then, when the bank has several homes in its possession, it will often auction some of them off in order to recoup its losses.
To find a great deal on foreclosed homes, you will have to go to the local auctions for bank-owned properties, but before you do that, there are a couple things to keep in mind. First, you will need to know exactly what you’re looking for in a home, and you can feel free to bring your real estate agent along to the auction to help you find it. You should also be aware of potential issues that might arise when you buy a home from a bank, and you should be prepared to act very quickly since foreclosed properties sell almost immediately.
#3 – Fixer-Uppers
For some people, a fixer-upper is a dream. They love the idea of buying a home at a significantly reduced price, then fixing it up and making it into the home they’ve always wanted. In fact, if you have a very specific floorplan in mind, this may be the very best possible way to achieve it. Homes with mold, fire, flood, and other types of damage often sell for a fraction of the market price of similar undamaged homes in the area, so it truly is an opportunity.
However, you should also consider the problems that you might experience with fixer-uppers. Unless you have contractors in your family or you have experience of your own, finding a contractor that can do the work for a good price and on a good schedule can be tricky. Keep in mind that fixing up a house that has been damaged or wasn’t properly maintained can take a long time, too, so you’ll need to be very patient.
As you can see, there are a few ways to find homes at below-market prices – and in some cases, you may even get the deal of a lifetime. However, each of these three methods comes with its own unique set of downfalls and challenges, so be sure you’re prepared to handle them before you dive in.