Buy a House
If you want to buy a house in today's market it is a good idea to understand the options available. Buying houses in a downturned market can potentially yield tremendous profits in the long run. On the flip side, if you don't understand the market and go in blind, you could end up losing a fortune.
The majority of people who buy a house utilize the services of a realtor. While this can be a smart decision and ensure appropriate paperwork is filed, there are other ways to buy real estate. For instance, many homeowners are selling houses as rent-to-own properties. This is ideal for people who do not have perfect credit or those who do not possess the financial means to provide a large down payment.
Seller carry back financing is quickly becoming a popular way to buy a house. With this type of financing, sellers finance all or part of the mortgage loan. In most cases, sellers carry back around 10- to 20-percent of the purchase price and the buyer obtains traditional financing for the balance. Rarely do sellers carry back the full amount; however, some sellers offer this option if buyers are able to provide a down payment of 10-percent or more.
Probate real estate is a relatively unknown option for buying a house. Probate real estate refers to property which has been left to heirs through a decedent's Last Will and Testament. Real estate can be held in probate for several months, or even years.
The decedent's estate must pay all expenses associated with the property. If the estate does not have sufficient funds to care for the property or maintain mortgage payments and insurance, the court can order the heirs to sell the property.
Many people are turning to foreclosed homes as a way to buy a house priced under market value. Considering there are millions of foreclosure properties on the market, buyers can choose from a variety of real estate to fit their budget.
Bank owned homes can oftentimes be purchased at 10- to 30-percent under market value. Also known as real estate owned, or REO homes, these properties were once foreclosure homes which did not sell at auction and were returned to the bank. REO houses are sold directly through the bank. Many lenders work with realtors to sell their inventory of distressed properties.
These are just a few of the ways to buy a house at reduced costs. Learn more about the numerous home buying opportunities by visiting our real estate article library. There has never been a better time to buy a house. However, it is crucial to become educated about the numerous opportunities, types of real estate and financing options before investing your hard earned money. Take time to understand the market and invest wisely!