Bargain Hunting
Nine Tips To Great Values

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Hunting For A "Bargain" Property Takes Planning
Everyone wants a bargain when buying a property. But one buyer's bargain can be another buyer's money pit. If "bargain" means only below-market price, then not everyone can get one. The secret is value. If you hunt for value-in addition to price-you are guaranteed to get a bargain when it's time to buy your next property. Not all bargains are distressed properties or fixer-uppers. Bargains can be had in the mainstream marketplace as well. Although you may pay the same price as another investor neighbor, your property may have upside potential, income increase opportunities, upgrades and special features that make it a real value. You can also get a bargain in terms of how you buy the property - perhaps through "creative" financing with the seller's help. Included in this report are nine strategies you should know before beginning your search for a bargain property.

There are as many ways to locate bar­gain properties as there are buyers. Foreclosures, estate sales, corporate relocations, and distress sales are only some of the reasons below-market properties come on the market. Here are nine ways you can find a bargain home-and a great value.

1. Your first step is to hire a real estate professional who keeps a finger on the daily pulse of these specialty markets. Call us to find out how to get started finding your bargain home. We can help you avoid the pitfalls of bargain shop­ping and ease the process at every step.
   
2. Foreclosure sales involve properties where the owner has defaulted on the loan. If the loan was a conventional mort­gage, you can begin by reading about these properties. They are often listed in the classified section of your local newspaper under "Trustee Sales:" The trustees of the mortgage have confiscated the property and are now selling it "on the courthouse steps." You'll need deposit money in hand, as well as pre-approved financing to purchase a property at a foreclosure auction.
   
3. Government-owned properties include houses that had loans backed by the federal government, through agencies such as the Department of Veterans Affairs (VA) and the Department of Housing and Urban Development (HUD). Once these loans are in default, the lender takes over the property. When the fed­eral government pays off the loan, it then takes pos­session of the property from the lender. These homes are general­ly listed in the newspaper or on the paper's or agency's website. The bidding process is through real estate agents who have taken the government's training program. The contract that brings the highest net profit to the government is usually the one accepted.  Although the homes are sold "as is," HUD may escrow part of the sales price to bring a property up to its standards to qualify for a Federal Housing Administration (FHA) loan.
   
4. REO properties are Real Estate Owned by institutions such as lenders and corporations. The properties typi­cally are listed with real estate agents in the area. Lenders' properties are likely to be fore­closures as a result of default on a loan, so the condition of these properties may be less than perfect.  Corporate REOs, on the other hand, usu­ally result from a company purchasing the property of an employee or key executive who has transferred before the property could be sold. These executive properties tend to be in pretty good shape and priced to sell.
   
5. Fixer-upper properties generally are in disre­pair and sold "as is"­ the discounted price reflects their condition. Ask us how to qualify for a loan that includes extra fix-up cash through the FHA 203(k) program.
   
6. More below-market properties are avail­able through brokers, including estate sales, builder close-outs, auctions, and divorce sales. In general, bar­gain properties sold through bro­kers tend to be in better con­dition than foreclosures and distress sales. We specialize in finding bargain properties for our clients, both in price and value. Give us a call for more information.
   
7. The least-expensive house in the nicest neighborhood you can afford is often a great value. This type of home puts you in the best position to benefit from improvements and price appreciation.
   
8. Financing with low money down or no money down can get you into the home of your dreams, maximizing the return on your original cash outlay.
   
9. New properties or homes being sold either out of the site trailer or when the builder is closing out the development are often a good deal. When a builder is starting sales in a new community, pre-construction prices offered out of the trailer are sometimes lower than when the houses start going up. Later, when the builder wants to close out the community and move on to another development, there may be special discounts and incen­tives for buying the last of the inventory. A savvy home buyer can pick up a bargain this way.

Shopper's Guide To Finding Valuable Properties in Today's Market

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Inspect Condition Carefully
Many bargain homes are sold "as is," so you first need to discover the true condition of the home to determine what repairs are needed and how much they will cost.

Insure The Title
Some bargain homes come with a general warranty deed, which does not guar­antee clear title. Without clear title, you face the possibility of losing ownership of the prop­erty as a result of existing liens and other legal actions, even after you have gone through settlement on the property.

Stick To Your Limit
Know the worth of the property you are considering at an auction. And know what you are willing to pay-then stick to it.