Finding the right door into the housing market
Buy a stigmatized or overlooked property. In any market, a few houses get passed over, sometimes because they were simply overpriced to begin with and then got forgotten by buyers, other times because there's something wrong with them -- maybe they smell like cigarette smoke, or were the site of a violent crime. If you can live with or correct the problem and can negotiate a lower price, you may have yourself a deal.
Buy a fixer-upper, cheap. Houses that need work always sell for less, although you'll need to estimate the repair costs carefully to make sure it's a true bargain. Fixer-uppers that need only cosmetic work tend to get snapped up quickly. Get a contractor to check the place out if there's any chance you'll do a major remodel or it will need foundation or structural work.
Buy a small house with remodeling potential, and add on later. Sometimes a house that suits your needs now can be remodeled later if your situation changes. Before buying, get a contractor's estimate and check local zoning laws to be sure your dreams are feasible.
Buy a shared equity house, pooling resources with someone other than a spouse or partner. This may mean either having an outside person invest in your house and gain a share of the profits when you sell, or simply sharing a purchase with someone who will live with you. It's a trend!
Rent out a room or two in the house, or buy a duplex, triplex, or house with a rentable in-law unit. Depending on your local rental market, the added income from rent may offset a good portion of your Mortgage. And talk to your accountant: Renting out property is a sort of business, so you'll need to add a Schedule E to your taxes. On the plus side, you can deduct a prorated portion of your home expenses and depreciation from the rental income.
Buy a house at an estate or probate sale. A house that belonged to someone who passed away can be a bargain, usually because the deceased person's family members are eager to get the cash out of the property. However, you may have to attend some court proceedings.
Buy a house subject to foreclosure (when a homeowner defaults on the mortgage). Houses subject to foreclosure or that have been foreclosed on are often cheaper because the homeowner needs to sell quickly, or the bank has stepped in to sell the property, possibly at auction. However, it's a risky way to buy a house, because you can't always do physical inspections, and the current owner may have a right to pay off the debts and reclaim the house within a certain time. For more information, read Nolo's article, Buying a Foreclosed Home: Your Way Into the Real Estate Market?
Buy a house at an auction. House auctions, both live and online, are gaining in popularity. Just make sure you're given an opportunity to inspect what you're buying before you get caught up in auction fever.
For the details on all of these strategies, see Nolo's Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder, and Marcia Stewart.
by: Ilona Bray, J.D.
10 Tips for Buying Cheap Houses (I)
ReplyDeleteMarch 14th, 2011 | Author: Grey Andalusia
Buying Cheap Houses1. . Make sure that you are able to pay Housing
Yes, sounds obvious but it is important to ensure we can pay for housing, I mean having the money before bidding because there are many cases that people offer and then can not afford it, so once you have the money or because you have sold your old home, they started this well the first point.
2. Is it an investment or your primary residence?
If the purchase is purely for investment only have to think in terms of return on rental houses (trying to get and possible rise in house prices. Well, you should be aggressive in the final price, without sentimentality. On the contrary, if the home is to live there for 10 years or more, you can be a little more flexible if it is the home of your dreams, but always ask yourself if you all esavivienda costs, especially if is a big jump from your previous home.
3. Do not buy until you have your house sold almost
Until you have your house sold, do not know how much you get for it. therefore, it is better not to go bidding during this period. in fact, some real estate homes refuses to enrage people in these circumstances. and that despite the widespread fall in prices, there are still people who do not accept suvivienda has fallen in price, but are bidding down tremendously to properties that interest them.
4. Weigh what you want from property
Is price the only thing you care about the floor? now more than ever you should think about what interests you and choose a home. previously only recommended to follow the rule of three l (location, location and location), but now in recession speaks of the three p (location, price and perfection). More houses have gone down are not necessarily the best price they have. although there is always room for negotiation, the best properties have lost less value. therefore have to choose what we want (transport, services …)
5. Investigates how far you can lower the price
The best way to make an offer is not it. must be hinting that we will, but we will take a while to let the realtor excited. Meanwhile, find out more about the property and the owner of lavivienda of interest. the time it takes in the market, the level of desperation of the seller, how many bids have been received and how many have been rejected … you have to be funny without being rude to make an offer adjusted downwards, is likely to be rejected, but if it is realistic can be a touchstone from which to start negotiation.
10 Tips for Buying Cheap Houses (II)
ReplyDeleteMarch 17th, 2011 | Author: Grey Andalusia
6. Make Offer
You have more chance of being accepted an offer if the seller has already suffered some disappointment in the form of withdrawal from interested buyers or around important dates such as Christmas. It is also important to try to find out whether the seller to view important dates, such as changing jobs or need to apply for college or other service in another location. also tend to be more receptive if they have psychological times with lavivienda for sale, for example one year.
7. Settle seller
Make an offer down, but be prepared to accommodate you to the time schedule of the seller, that maybe the house needs a few months before give it to you. that can give significant savings that will save rent. you should also be polite and show your admiration for the improvements made by the seller, but you say you have to include reforms tuoferta cost of other things.
8. Gazunder Should you practice?
United kingdom no contract is signed through to the writing, so some people lower their offer or bargain at the last minute. In times past when the housing prices went up did not stop the opposite, that the sellers were going to the buyer at the last minute saying they had otraoferta higher and threw them from the contract if matched that offer. here is opinions to suit all tastes. While some recommend not to because it is unethical, others note that business ethics is elprecio and if the price keeps going up to the agreement must be able to adjust the value of the transaction.
9. If you haggle at the last minute …
If you decide to withdraw its initial offer, be sure to have ready reasons to justify this change and give the agent time to negotiate with others interested in the property. Otherwise it takes more than a whiff of blackmail and may mean that the seller withdraws from the sale completely. be prepared to lose the property if it is a bluff.
10. Be ready to close the deal
Finally, make sure you’re really willing to go ahead and close the deal quickly if there is an understanding. have everything ready and prepared to not delay the process.