Finding Affordable Homes

Real Estate Dictionary has identified how to find affordable Real Estate even though it appears impossible to a significant number of people. The reality of purchasing an affordable home is that it is very simple. There are literally hundreds of ways to find discounted Real Estate. The following are the most common identified by the Real Estate Dictionary:
1. Cosmetically injured.
2. Bank owned.
3. Wholesale.
The first way to find an affordable piece of Real estate is to search for a property that is cosmetically injured. Cosmetically injured is a property that appears to be a property in bad condition. These are properties that need paint, carpet, cabinet refinishing, new appliances, and updated fixtures. Each one of these items can reduce the price of a home when it comes to appraisal. The fact is that most homebuyer’s lack the imagination to see what a home could look like fixed up. It is possible to find homes like this for up to 50% below market value. Purchasing one of these properties and spending a couple thousand dollars is your first way of obtaining the dream home at a decent price.
The second way to find affordable Real Estate at a decent price is to look for bank owned property. Bank owned properties are those that the bank foreclosed on the owner due to lack of payment. The reason it is wise to search for this type of property is because the bank simply wants he amount owed. What this means is that if someone purchased a home for $200,000 in 1990, the amount left on the mortgage is going to be significantly lower. The following is an example without interest being computed:
$200,000 (Original purchase price.)
-$133,000 (Total paid by original owner over 20 years.)
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$67,000 (Amount the bank wants for the property.)

As you can see from the equation above, the potential for the dream home and the dream price is very real and there are literally thousands of them on the market. The only challenge of getting a property like this is finding them. Generally you will not find these on the regular Real Estate market because many banks fear it will scare potential borrowers. The way to these homes is to get a realtor that specialized in bank owned property.

The third way to find the dream home for a great price is to purchase the property wholesale. Whole sales Real Estate are homes that are purchased by an individual who specializes in being a middleman in Real Estate transactions. Generally these homes are purchased for 60% of the market value or less. The whole sale specialist then looks for an investor who is wiling to purchase the home for a couple thousand dollars more then what they paid for it. Once again these homes are cosmetic homes and the only difference is that the home search has been completed for you.

In order to find whole sale properties you have to find he whole sale specialist. Whole sale specialists can be found two different ways. The first way is by doing a simple web search, just look up whole sale real estate. The second way to find whole sale specialists is to search the classified listings on your local newspaper.

There are literally hundreds of ways to find discounted Real Estate. Using the three methods listed in this article will open up new doors to having the dream home. Finding a discounted home is simple, it takes research, ability to imagine a damaged home being beautiful, and persistence. Do not give up your future home is out there, just go find it. Real Estate Dictionary home.