Today's real estate market offers a wide variety of homes for sale. Some of the more common are single family residence homes and multi-family real estate such as duplexes or apartment buildings. There are fixer-upper homes, brand new homes and those who require a little extra tender loving care.
The majority of homes for sale are offered through licensed realtors. However, experts suggest nearly ten percent of homes are now being offered as For Sale By Owner (FSBO), which may or may not be the best choice for you.
While it's true you might be able to negotiate a better price by buying directly from the owner, there are many opportunities for disaster. If you decide to go this route, it's best to hire a professional who has a thorough understanding of this type of real estate transaction.
Many potential homeowners are seeking out foreclosure properties. Occasionally, foreclosure homes can result in significant savings. However, more often than not foreclosure homes are not nearly as great of a bargain as late night infomercials would like you to believe.
Last, but not least, many homes for sale are offered as Real Estate Owned (REO) properties. REO homes have been returned to the bank after being placed on the auction block. When foreclosures do not sell at auction, they are returned to the bank. Currently, banks are only accepting offers of at least ninety five cents on the dollar. In other words, if the balance due on the note is $100,000, the minimum amount the bank will accept is $95,000.
As you can see, there are many variables to consider when researching homes for sale. Although, the current real estate market is shaky, there are still numerous deals to be found. While it's impossible to determine the exact number of homes for sale across the United States, some suggest there are literally millions of homes waiting to find an owner.
Before you invest in any home for sale, create a checklist that includes:
- the maximum amount you can afford
- how much money you have available for a down payment
- type of home you want to buy; i.e.; - new, used, fixer-upper, single family or multi-family
- areas where you wish to reside or invest in rental property
After developing your plan, conduct research via the Internet; by browsing Homes for Sale magazines; or by contacting a professional realtor in the area where you wish to invest in real estate property.
If you are new to real estate investing, it's best to use the services of a realtor for your first transaction. They can guide you through the process and help you avoid costly mistakes.
If you have previously purchased real estate, consider investing in a home for sale by owner. If you have time to invest in fixing up a distressed property consider a foreclosure or REO property.
Although the real estate market is currently on a downhill slide, history shows that real estate is still the best investment you can make. Take time to do your homework and you could build a substantial nest egg for your future!