Cheap Properties – Finding Undervalued Real Estate While the Market is Down

The largest expense you’ll have every month is more than likely housing. Most people pay at least one third of their income for a place to live. Due to this fact, finding cheap properties would be a huge help for those of us dedicated to a cheap living lifestyle.

The best way to find cheap properties is to look for distressed mortgages or foreclosures. In today’s housing crisis, it shouldn’t be difficult to find these types of properties. When you purchase a foreclosure, you usually acquire the property at a discount to the market value.

Here are some tips on how to find cheap properties:

1. Your local newspaper should have foreclosure listings in the classifieds section.

2. Check with a real estate agent. They often have foreclosure listings, as well. Be aware, however, that some real estate agents may not provide good service, because they won’t earn much commission on cheap properties.

3. There are also websites that provide the information, but many of them charge a fee for the service.

4. Check with local banks or mortgage companies. They should have listings of the distressed properties under their control. Some of these institutions also publish the information on their website.

5. Don’t forget about government offices. The U.S. Department of Housing and Urban Development (HUD) website has information on foreclosures. Your local county courthouse will also have a list of foreclosed homes in the county.

6. If you know the exact neighborhood where you’d like to buy a home, you can drive around looking for signs. You’ll know the property is distressed if you see signs such as bank repo, foreclosure, or REO.

Perhaps you already have a decent house with a reasonable mortgage. You can still look for cheap properties as an investment. I still remember my first home purchase when I was a 21 year old GI. A good friend and I bought the house as tenants in common, because neither of us could afford it alone. Eight months later, we sold it and pocketed three grand each, which was quite a bit of money back in 1978.

This information about cheap properties was provided in hopes you can make use of it. Whether you are looking for a place to live or you are looking to invest, always arm yourself with knowledge before you buy.

Be Sociable, Share!

Comments are closed.