Buying a home is a large purchase, but one that can bring you pride of ownership. As the price of homes is steadily increasing historically, financing the payment can be more and more difficult. Here are some home search tips you can use with the help of your realtor to find a single family home for sale that will fit your family's needs and your budget.
Shop For Financially Distressed Properties
When you are shopping for a home, it can be helpful to look for a home that the seller needs to sell as soon as possible due to financial distress. Their reason for needing to sell can include anything from a job loss or reduction in income to other bills that have strained their financial situation. When a homeowner needs to sell their home fast in order to get out from under its financial burden, they are more likely to sell at a lower price versus looking to sell for the home's full value.
Sometimes you can find a motivated homeowner, for example, who has quite a bit of equity in their home, therefore they are willing to come way down on the price so they can get some of their home's equity. In this type of situation, if they don't sell their home, the bank will take it back and they will walk away without any of their home's equity. Your buying the home will give them some cash they can use to buy a more affordable home or pay off some of their bills.
You can find this type of home listed as a short sale or a pre-foreclosure, or the property listing will indicate the seller is very motivated to sell. Talk to your realtor about looking for this type of home.
Search for a Physically Distressed Property
Another way to find a home that you can buy at a discount is one that needs a great deal of repairs. When a home is in disrepair and has been physically neglected, its market value will be lower than comparable homes in good repair, because the distressed property needs quite a bit of work to fix it up. And because a home is not move-in ready, this can also discount its price when there are so many buyers who want the convenience of a move-in ready home.
With the help of your realtor, negotiate on a distressed property's purchase price by listing estimates to repair the areas of disrepair in the home, such as fixing its landscaping, adding a new roof, siding, or drywall, or flooring in the interior. By listing these expenses you can request a lower offer price on the home. Then if you end up buying the home, you can complete these repairs on your own or by hiring a professional to do them as you can afford them.