There is always a small percentage of homes for sale at any given time that can present a profit opportunity for anyone looking for a bargain and willing to do some work. Today’s market has many short sales, foreclosed properties and REO’s that may fit into this category. Each will have its own challenges for the buyer and need to be taken into consideration when investing in real estate.
There are five reasons such houses and condos are offered at bargain prices:
- A seller cannot afford to fix the house or does not want to. It is for sale “as is”.
- It is a foreclosure or short sale that has not been maintained.
- The seller inherited the property and wants whatever cash it will bring.
- The home has never been updated and has very old fixtures, appliances, and paint. However, remember to look carefully because some of those old items are coming back into style!
- It has a structural defect which cannot be repaired without huge costs.
All homes in the first four categories are good prospects. Stay away from a home with a structural defect such as a major foundation problem.
Now is the time to look at investing in real estate. Those that make it big seemed to do opposite of the masses…. are you one of those?
Posted in Home Buying Tips
