Finding Cheap Houses: How You Can Get Bargain Dwellings - By: Joseph B Smith

Cheap houses do not come by easily, but the recent housing crisis has made them more common than before. However, this does not mean that you can just pluck them out of the market whenever and however you please.

Low priced dwellings still cost money, but there are ways you can lower the asking price for a home that you really like. You just need to know how to negotiate and to take advantage of even the smallest opportunities that are given to you. Here's how.

1. Consider cheap foreclosure homes. These are the lowest-priced dwellings that you can find. Some are being sold for less than 50% of their true value and there are a lot of choices to satisfy every homebuyer's preference. Contrary to some claims, foreclosed houses are not always rundown and do not cause too much trouble to purchase; most are in good condition and depending on the buyer's preparation, can be bought quickly and with less fuss than some may expect.

2. Buy by the bulk. If you are an investor, purchasing properties by the bulk is the best strategy to gain significant discounts. Sellers are willing to lower the price considerably if more than one property is involved in the deal. Of course, this will only work for those who plan to sell the properties later on or rent them out as there is little sense in purchasing multiple homes if what you are looking for is a personal residence.

3. Prepare a higher down payment. If a seller is asking for a 10% down payment and you can afford to pay 20%, better opt for the higher percentage. The higher your down payment, the more likely you will get cheap homes since sellers will be much more willing to cut down the asking price if you pay a higher amount up front. In the long run, the higher down payment will benefit you since your total purchase price will be lower and even the length of time you need to pay will be shorter.

4. Consider homes that have been in the market longer. Cheap properties for sale are those that have been up for sale for at least three months. The longer residential properties have been in the market, the more motivated the seller would be to unload the property. You will have a better chance of negotiating for a lower price if the house has remained unsold for a quarter of a year or longer.

5. Find out the reason for the sale. Most of the time, possible foreclosure or financial difficulties are the reasons for homeowners' decision to sell their house. However, there are also other factors that will make a homeowner eager to sell his property and some of these reasons have nothing to do with his financial condition. Divorce, relocation and the need for a bigger abode for an expanding family are just some of these other reasons. Most cheap houses are sold as such due to financial issues, while others can be due to changes in family situations.

About the Author

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