Bargain Properties

Affordable Real Estate

Are you still writing those checks every month to keep a roof over your head, but which don't gain you any equity? If you are still renting because you think you still need a fortune to get into your own home, you should investigate today's real estate market.

Interest rates are still low, which means very affordable payments, perhaps in the range of your current monthly rent. Qualifying for a loan was never easier, especially since lenders have increased in large numbers and are competing for your business. Even if you couldn't qualify to buy a home just a few years ago, you may be able to qualify today. Home prices today are relatively stable, so you might be surprised at the number of homes available in your price range. There are a number of government programs and mortgage packages which require small down payments, in the three to five percent range--and we haven't even started talking about the tax advantages! Think about it the next time you write a rent check.

Bargain Homes

Most buyers want a home that is in tip-top condition and ready for them to occupy, but many homes go for bargain prices because they need work. Buyers love "fixer-uppers" for the obvious reasons: the price and the satisfaction of designing something attractive. Whether you are buying the property for yourself or as an investment, choose a house that is in a good location and structurally sound. It should be priced enough below market value (usually 25%) to allow plenty of room for a profitable re-sale after the work is completed.

It is important to educate yourself before taking on such a project. For example, inexpensive cosmetic improvements often give the greatest return-- paint will increase the value three times for every dollar invested. Landscaping, carpeting, and light fixtures are also relatively inexpensive improvements. Expensive structural improvements, such as a new roof, plumbing, wiring, or foundation repairs, usually add very little to the market value of a home.

Remodeling a kitchen will rarely add more than the cost, but new appliances usually give a fine return. An extra bathroom is the best renovation from an investment point of view, often giving twice its cost in added value; the worst investment is a swimming pool.

Fixer-Uppers

There are a lot of "diamonds in the rough" for sale. Such a "diamond" may be in a great location, have large sunny rooms and a big yard, but may also have awful wall paper, old carpeting, and uninspired bathrooms. If you can look beyond the surface, you may see a house with incredible potential that could be transformed by a little "elbow grease", paint, and new carpets. If a house is structurally sound and all the systems are in good condition, it may be only a few cosmetic repairs away from being fantastic! A home that does not show well is usually priced accordingly. If the price doesn't reflect the condition of the house, the seller may be more willing to negotiate than a seller who has made a considerable investment in preparing a home for the market.

So bring your imagination with you on your next house hunting trip! You may be pleasantly surprised.

Get Rich Quick with Real Estate

You see them on cable TV, sitting around a swimming pool, sharing stories about how they got rich quick by buying valuable real estate for give-away prices. They took a course on how to invest in real estate and became millionaires overnight--with nothing down and no credit hassles from mortgage lenders. The course worked for them, and they say it will work for you, too.

If all this sounds too good to be true--it is! These "get-rich-quick" courses and schemes are being investigated by consumer fraud agencies around the country. This does not mean that you can't become a millionaire by investing in real estate. But investing in real estate requires one important thing from you--an investment of cash. You can't build an empire overnight, but you can do very well over the long term by selecting property in a good location that is priced well, and which can provide a reasonable cash flow.

House Bargains

Houses that are spotlessly clean and tastefully decorated tend to sell quickly, and for top dollar. There can be substantial savings for home-buyers who are willing to overlook surface clutter or other cosmetic failings of a house.

When you look at a home that needs work, try to imagine it with fresh paint, refinished floors and new carpet. Consider the good things about the house. Would it get more sunlight if the draperies were opened and the windows cleaned? Does the back yard have potential? Try to distinguish between the cosmetic condition of the house and the state of its structure and major systems. Some fixer-uppers need a lot of professional attention from electricians, plumbers and other expensive professionals, while others are true bargains that can be transformed with a little elbow grease, a paint brush, and your imagination.

Such A Deal!

Most sellers know that buyers are attracted to homes that are spotlessly clean, well-maintained and tastefully decorated. Sometimes the seller can't make the extra effort to prepare the home for showing. Some of our listings are being sold to settle estates or by someone who has been transferred unexpectedly and didn't have time to complete the necessary cosmetic repairs. Homes that need work are often exceptional values.

When a Realtor shows you a house that needs help, try to imagine how it would look with new carpet, a fresh coat of paint and your furniture settled inside. Because the condition and overall appeal of a house have such an impact on the selling price, "fixer-uppers" are often priced less than comparable homes. If the home is structurally sound and has updated systems, a small investment of "elbow grease" and paint could make it look fabulous.