If you are looking for a reasonably priced home, consider looking for an unconventional house. Some unconventional properties tend to have lower prices than conventional properties due to the former's unique circumstances. Here are some unconventional property sales to consider:
A foreclosure is a property that has been repossessed by the bank (or any mortgage provider) because the owner has defaulted on their payments or given up on the purchase. Lenders sell such properties to recoup their investments. Some foreclosure properties are sold at relatively reasonable rates.
Just know that foreclosure sales have special rules that may not all be favorable to you. For example, most states provide a redemption period during which the previous homeowner may clear the dues and repossess the property. Therefore, understand all these rules (you can consult a real estate agent) before going ahead with the purchase.
A short sale is a property put on the market for a price that is less than the outstanding mortgage — the value of the house falls short of the outstanding mortgage. A homeowner may put up a property in short sale if they can't afford to pay the mortgage, and the value of the property has fallen. In such a case, the short sale offers the homeowner a chance to avoid lender repossession and the negative ramifications associated with foreclosure. A short sale property may be reasonably priced if the owner wants to sell the property as soon as possible.
Homes for Sale by the Owner
These are homes that have been put on the market by their owners, rather than through real estate agents. Some property owners do this to maximize their earnings by saving on the commissions for the real estate agents. A homeowner may pass on these savings, though it is not a guarantee, to the buyer.
Homes Put on Sale Through Land Contract
A land contract works like a mortgage, but instead of making the payments to a lender, you make them directly to the property owner. You sit down and agree with the seller on the purchase price, contract period, interest, and installments. A land contract can be used to buy any kind of property, not just land as the title may suggest. A property for sale on land contract may be relatively affordable because the seller is not looking to make a killing on the financing like a bank would.
While you may be able to save money by buying an unconventional property, you should research the pros and cons first. Some of these unconventional property sales have terms and conditions that may not be favorable to you. A property agent can help you understand each of these options best.Share
17 July 2017
Although I've never worked professionally in the real estate business, I sure know my way around it. How, do you ask? Well, I have simply rented a lot of different places and worked with a lot of different landlords and real estate agents. In the past 7 years I've lived in 11 different houses or apartments, none of them my own. In finding those 11, I have looked at literally hundreds of apartments. I used to hate house hunting, but now it's kind of fun. You just need to know what you want and the right questions to ask. Hopefully this blog can help you learn some of the tricks of the trade from another renter like yourself.