Cheap Houses

Cheap Houses

Definition

Homes that are viewed as bargains by investors and homeowners, usually through steep discounts brought about by foreclosure or short sales. These homes are purchased for significant discounts below market value.

How can I come across properties in great condition, but that are in expensive?

cheap homes for sale

These days, many investors are looking to buy cheap houses whether it means looking for HUD homes, foreclosure listings or even bank owned homes. There are a wide variety of cheap homes for sale all across the United States, but savvy buyers have to know just where to look.

One of the keys of buying cheap homes is understanding that they may require some work to be done. If you are a handy person, these smart bargains might be just what you need. Here are some tips for preparing yourself when looking for homes that are below market value:

  • Always do your homework: Even though it makes sense to purchase these good deals as quickly as possible, but you still want to do your homework so that you don't get stuck with a lemon. Although just about any home will sell for the right price, there are some that have such extenuating circumstances that it could cost you a lot of money to unload the property. There are many different ways to do your homework including hiring a real estate agent, doing a title search and even talking to neighbors in the area to get the background information about a particular property.
  • Prepare your financing: Being able to jump on a good deal at a moment's notice is very important when you're looking at cheap housing. For that reason, you need to make sure that you have all of your financial ducks in a row so that you can make a swift decision when it comes to cheap properties.
  • Check the title: One of the best ways to protect yourself when buying cheap foreclosures is to have a thorough title examination done. Often, this is done as a part of the closing process. Many times, properties may have experienced a lien against the title. This is one of the reasons why it's a good idea to purchase owner's title insurance to protect yourself in the event that someone challenges your title.

How to search for cheap homes to purchase and fix?

When you're looking to find a cheap house, there are several different ways to go about it. You could spend your time driving around looking for houses on sale in your area. You could look for single-family residential homes, multifamily properties, mobiles and even cheap apartments. It all depends upon the kind of discount properties you are interested in. Some people like to consider both single-family and multifamily. You may decide to buy a multifamily unit and open it up for rent instead of immediately flipping the property for profit.

Another great way to find cheap houses for sale is by going to www.ForeclosureDeals.com and doing a search throughout the United States. This clearinghouse of the cheapest homes for sale across the country can save you a ton of time and gas money. When looking at buying properties, you want to save money wherever you can.

Would it be a great plan to purchase cheap homes and foreclosed homes?

Anytime you can find cheap foreclosed homes for sale, you always have the opportunity to get a low price and a great deal. As long as you are in a financial position to purchase these houses for sale, it makes good sense to do so. As housing prices have gone down in many areas due to the changes in the economy and housing market, many savvy home buyers have been able to reap the benefits of getting great deals. Many cheap foreclosure homes will go for 50% of their market value or less.

How to come across foreclosed homes at an action at a good price

Every state has their own specific laws and regulations as it relates to foreclosure auctions. You can find cheap foreclosure homes for sale in a number of different ways. First, the property will go up for auction allowing bidders to purchase it at a sheriff's sale or on the courthouse steps. Most states require that you have the money upfront to pay for the property within about 24 hours of bidding. If you need to get a loan, buying at auction won't work for you unless you can get the actual cash up front from your lender.

Many buyers wait until the property doesn't sell at auction and has to be listed with a real estate agent. Most banks and lenders have preferred real estate agents that they list their foreclosure properties with. It's good to get to know these agents as well as they can provide a wealth of information about upcoming listings.

Buying at auction can definitely give you a leg up on your competition as many people are able to come up with the cash to purchase a home on the spot. That's why it's so important to have your financing in order so that you can jump on the best deals as they happen.

What is the minimum price to finance at when buying a cheap home?

If you're looking to buy a cheap home, you need to check with your lender to find out the minimum amount that you can finance. Certain kinds of lenders will allow you to finance smaller amounts while others may have minimum requirements. Much of this has to do with the type of lenders you are working with. For instance, hard money and private money lenders are often a lot more lenient than a typical, mainstream lender because they are not as hampered by strict guidelines.

Because many cheap homes can be purchased for pennies on the dollar, you will often see buyers getting homes for less than $20,000. In fact, the sheer number of short sales, REOs, foreclosures and other distressed properties have brought down housing prices in many areas across the United States. Knowing what you can afford and having the financing in place beforehand will help you to grab these fantastic deals before your competitors even know what hit them.

FAQ about Cheap Houses


  • You can find cheap homes for sale or the cheapest houses in USA by looking in our foreclosure listings. It is better to invest in cheap foreclosures or because they are priced 30-50% lower than the actual market value. These cheap foreclosed houses for sale will require a little bit of improvement and then they can be sold at a much higher amount. Your real estate business will make more profit by reselling cheap houses in USA rather than reselling overpriced properties from big cities or urban areas. Our 24/7 customer service by e-mail will guide you in finding a cheap property for sale within your area and within your budget.

  • If you have a knack for turning cheap properties for fast profit, then you will gain quite an impressive reputation in the real estate world. Finding the cheapest houses in USA is easy, although fixing it up could take some time and considerable effort. However, cheap foreclosed houses for sale are better because the cost for repairing them is lower than buying overpriced ones in urban areas. Just look at our updated bank foreclosure listings and it will lead you to any kind, size or style of cheap foreclosures and cheap homes for sale. Even if you're looking for a specific cheap USA property or a cheap property for sale in your area, our database will have them. Invest in the most amazing cheap houses in USA, improve its physical condition and good buyers will be flocking to your pricier properties in no time.

  • In many markets, cheap homes and foreclosed homes are one and the same. Cheap homes could be described as homes that have list prices that are lower than they have been historically. In other words, virtually every market has cheap homes because virtually every market has had a drop in home prices since 2005. With that being said, cheap homes could also be described as homes that have discounts beyond what you can find with other homes – such as foreclosed homes, REOs, and short sales.

    Whether or not to buy the first type of cheap home - a home that is for sale for less than normal price but isn't being foreclosed - instead of a foreclosed home depends on what you are looking for in a home. If you want the simplest route to home ownership, or want a home in pristine condition, buying a cheap, non-distressed home is your best bet. If you want substantial savings, however, buying foreclosed homes is the better of the two options, especially considering foreclosed homes almost always beat non-foreclosed homes on price in any given area.

  • Buying foreclosed homes at auction for cheap is a simple process for most buyers. The first step is to determine the method of payment. Foreclosure auctions require that buyers either be able to pay in cash (proven by bank records of checking/savings accounts, investment accounts, and any other liquid assets) or financing (proven by a bank's letter of approval for a home loan). The next step is to find a foreclosure auction. These are held at regular intervals in virtually every county in the country. Online foreclosure listing services are one resource you can use to find them. Another is to consult your local county courthouse for a list of auction dates and times.

    At the auction, you can win a property by placing a bid that is higher than other rival bids by the time the bidding period expires. Some properties will be more competitive than others. The bidding process, therefore, may be easy and short or long and competitive. Once you win a home at auction, you can claim the title and pay the earnest money required by the auction in order to receive the title. After the paperwork has been completed, the home is yours.

  • The minimum amount you can finance in a home loan from a lender really depends on the lender. Some have no problem financing relatively small amounts (less than $30,000) for a home purchase; others have minimum amounts you must meet.

    In terms of the minimum you can pay for a cheap home, that depends on the market. Some homes can be purchased for pennies on the dollar. It is not unheard of for people to buy homes for even less than $20,000, simply because the massive number of foreclosures, short sales, REOs, and distressed properties have brought down the median home price in the country by so much. The best way to approach the issue of buying a cheap home is to first establish a budget. How much can you afford, and how much can you finance? Once you have your budget established, then you can find cheap homes that fit your price range.

Go to the Foreclosures FAQ page

How to buy cheap houses through foreclosures

Buying foreclosures is an excellent way to get the most out of buying cheap houses. Foreclosures allow homebuyers to save as much as 60 percent off the market value of any potential property. Homebuyers and investors alike have a lot of gain by...
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