how to buy a house cheaper than asking price

Estate agents have been known to employ individuals to carry out those ‘hot buyer’ viewings that are carried out before a property even goes on the market.
Agents know that if they list your property on a site like Rightmove as fast as possible, phone calls will be generated from buyers that are ready and waiting, but these buyers have no existing relationship with the agents.
As buyers get more desperate, estate agents have become desperate to get good quality properties on their books.
You’d think that estate agents are simply there to sell property.
With the main aim of valuations being to secure new properties, estate agents carry out a lot of them.
Ready-to-go buyers that many estate agents talk of usually do exist, just not in the way you’d expect.

But a good agent will still advise caution if he feels a buyer is bidding more for a house than it’s worth, or overlooking serious flaws.
Real estate agents perform a variety of useful services, including advising the client on the state of the market, helping the client view homes for sale, writing offers, negotiating with sellers, and guiding the buyer through the purchase paperwork.
While few real estate agents will deliberately recommend an incompetent inspector, you might get a more thorough inspection if you decline your agent’s recommendation and choose an inspector based on your own independent research.
In contrast, Redfin employs its own team of real estate agents, and offers all the services of a traditional full-service real estate agency.
So if you’re intimidated by the idea of searching for properties online, or you want a single point of contact to take you through the home-buying process step by step, a traditional realtor might be worth the extra money.
If you’re trying to buy a house for less than $400,000 but your realtor knows the bank is willing to lend you $600,000, he might encourage you to consider homes above your price limit.
While it might seem like a waste to pay rent when you could be building equity, the amount you overpay due to a hasty purchase — or the cost of having to move again after buying a house that doesn’t meet your needs — could dwarf the cost of a few months’ rent.
If you expect you’ll need a different house in the next few years — because you might move to a different city for work, you’ll need a bigger house to accommodate a growing family, or you simply aren’t sure what kind of house you’ll want in a few years — it’s better to continue renting until you’re ready to settle down.
"They have a great website, but you’re not going to have the kind of extensive one-on-one counseling and advice you get from a traditional agent," argues Alisa Wynd, a real estate agent in the San Francisco Bay Area.
Most sellers sign contracts promising their agents 6 percent of the sale price, with half the money going to the buyer’s agent.
So while it’s in the buyer’s interest to choose an experienced and aggressive inspector, it’s better for the real estate agent to have an inspector who isn’t so picky.
Many people want to buy a house as quickly as possible because they think paying rent is "throwing money away." But buying a home too quickly can be an even bigger financial mistake than not buying at all.
In theory, you can buy a home without a real estate agent, but for most first-time buyers it makes sense to hire a professional to guide you through the process.
Asking that the seller contribute towards these fees could be a good way to cut the cost of purchasing the property and save hundreds or possibly thousands of pounds – even if you don’t manage a reduction in that actual house price.
It’s widely accepted that estate agents will imply that there has been lots of interest in a property to try and force a buyer’s hand, even when the housing market is approaching a snail’s pace – so letting them know you have several other options may mean they are more open to reducing their asking price.
Visit the Land Registry website to search your local area to find the average house price, or property sites such as Rightmove to find specific sale examples.
Knowing the ‘going rate’ for other properties in the same area is a must when you’re negotiating on the price of a property you want to buy.
It’s also wise to explain your offer; state exactly what work the house needs and how much it will cost, or that other properties of a higher standard went for less than the listed price nearby.
The website is worth a look as it gives you information many estate agents would be reluctant to divulge: the amount of time a property has been on the market and any price drop that has occurred.
In contrast, as a buyer you want a great property for the lowest price so your initial conversation with the estate agent is an important one.
For example, ask why the property is being sold (if it is a result of an imminent job move they may be keen to make a quick sale), how many people have viewed the property, and how many have been back for a second viewing – if there haven’t been any they are unlikely to have had many/any offers.
Even if the bank that owns the would let you make repairs before closing so your lender would approve your mortgage, you’d have to pay cash out of pocket for those repairs — a bad idea, because the deal could still fall apart and you’d be out that money, Snow says.
Make sure that the price you’re offering is subject to a survey and getting a mortgage, so that after your offer is accepted there is still the opportunity to revise the amount you pay, and also state that it’s subject to the property being taken off the market and not being shown to anyone else.
If there have been other offers on the property, the estate agent can’t legally tell you how much they were for, but they may indicate whether they were close to the asking price, which will also help to inform your own offer.
When it’s time to make your offer, your research into the value of the property, your understanding of the seller’s circumstances and being clear about your own position (especially if you’re chain-free or are a cash buyer) are all invaluable.
If the property ticks all the boxes on your ‘needs and wishes’ list, it may be worth offering the asking price straight away – especially if you don’t intend to move again for several years.
In fact, in thriving property markets where bidding wars are common, it’s more than likely you’ll have to bid above the asking price to land your dream home, so make sure you factor this into your budget.
So here is the question, do you think they might take a little less to have the home SOLD, how many offers do you think they have entertained? My guess is 1 or 2, probably the first or second time around, and now their listing price is lower than either offer, they would probably to see an offer like that again but their ship has sailed and now they might be a little more reasonable when entreating offers…or maybe not, in that case we move on, there are other deals out there.
Some home owners when listing their home for sale choose a price that is too HIGH in hopes of drawing in a buyer who is either uniformed or willing to pay full price for the upgrades in the home.
Look at it this way, if the home is up for sale for $200,000, but is sitting empty, costing the owners $3,500 a month, they could wait 6 months and accept their price…but it COSTS THEM $21,000 to wait, when they could have just accepted $179,000 today and been on their way.
If they make a mistake, or intentionally price the home too low, the house will sell promptly, yes, but they may make less on the sale than if they had set a higher price and waited for a buyer who was willing to pay it.
When searching an online real estate platform like,, or, the properties are often, by default, listed by “most expensive.” Get into the habit of instantly clicking to sort by “cheapest first” and you’ll always see the cheapest houses for sale listed.
After all, “cheap is relative” so get a good grasp on your local real estate market by attending as many open houses as possible.
When making 100 offers, are you making the offer or are you having a real estate agent make these offers? How does your agent feel about that? I suppose it depends what the time frame of those offers are.
Since then, I’ve learned that whether you are shopping for your own personal home or for a house to flip or rent out, finding cheap houses for sale in your market is imperative to securing your financial future.
Finally, one great way to find cheap houses to buy is through a real estate wholesaler.
Have your real estate agent set up automatic alerts for whatever property type you are interested in so you can jump at any great deals.
I was 21 years old and looking for my first home; I knew nothing about real estate, but I knew one thing: I wanted to buy a cheap house.
By submitting a lot of offers, assuming most of them will fall through, you increase your odds of getting a really great deal on a cheap house.
In fact, every single property I’ve ever bought was some sort of “fixer” and that’s why I was able to get such cheap prices on them.
By looking at a lot of houses, you will be able to better sort out the good from the bad and train your mind to find great deals.
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We factored in all the costs of homeownership (e.g., closing costs, maintenance, insurance, taxes, etc.), along with the tax benefit of deducting mortgage interest and property taxes, as well as the proceeds from selling the home after seven years with modest home price appreciation.
The average homeownership cost in the Seattle area is $978 a month, 42 percent lower than average rent, the real estate company Trulia reported.
Finally, they mentioned that they included opportunity cost in their calculations, so let’s assume that you’re able to find an investment for your $60,000 down payment that would return an average of 5% over the seven year timeframe.
The word “appreciation” appears only once in Trulia’s entire post, with no specifics about how much they are assuming, and yet without the assumption of 3-4% annual appreciation the monthly cost of buying in the Seattle area is 54 to 78 percent higher than they claim it to be.
MP: Trulia’s analysis would indicate that the incredible affordability of buying a home today compared to renting will provide some support to the ongoing housing recovery over the next few years.  Of course, rising home prices and mortgage rates could eventually reduce some the current huge advantage of buying versus renting, depending on how fast rents rise compared to home prices.  And as Trulia’s economist points out, many would-be homebuyers don’t have the 20% down payment assumed in this analysis, and might not be able to save up that amount in the short run to take advantage of the historical affordability of homeownership.  But on the other hand, FHA is providing mortgages with only a 3-5% down payment, so the lack of a 20% down payment might not be much of a constraint.
Also, the 45% advantage for homeownership versus renting is the average.  In metro areas like Oklahoma City, the monthly cost of owning a home ($590) is as much as 63% lower than renting a comparable home ($1,576).  It make sense that such a huge cost difference would have to start translating into increased demand for home purchases, and that’s probably one of the factors contributing to increased home sales around the country.  Another example is Minneapolis – the monthly cost of buying a home there ($751) is 52% cheaper than renting ($1,558), which translates into monthly savings of $807 for homebuyers compared to renters (of a comparable house), and that huge savings is likely what is driving home sales higher in the Twin Cities (see CD post below).
"To calculate whether renting or buying costs less, we assume people can get a low mortgage rate of 3.5%, itemize their federal tax deductions and are in the 25% tax bracket, and will stay in their home for seven years.
Offering beautiful views and a variety of different properties to choose from, the gross rental yield annually in Hertfordshire is around 8.7%. With an overall average house sale price of £365,715 and a rental average price of £1056 pcm for flats and £1946 pcm for houses, Hertfordshire is a pretty stable investment for first time buy-to-let investors.
With an average house price of £106, 080 with many properties dropping below that, North East Birmingham has the highest rental yield last year with 10.6% annual rental yield.
With an average asking price of £106,396 and a rental price of around £590 pcm, the annual rental yield of Castle Vale, Birmingham is 9.2%. Castle Vale is well known for being a popular and well sought after area in Birmingham.
I had never had to furnish a place on my own before, and ended up getting one of those 0% interest two year loans a lot of places advertise to buy $6500 of furniture, basically furnishing a four bedroom house all at once.
Any place that offers you 0% interest financing is selling you goods at a significant markup and counting on you to not notice the terrible deal you are getting because it feels like free money.
This means your paying just a little more than what they paid for it so they’re making a little money and getting some floor space and you get a great deal, everybody is happy.
Can you find comps for non-foreclosures and non-short sales within a few miles? Do you plan to keep the property for 20 years or more if it takes that long to regain the value? And finally, if the appraisal came in at 90,000, do you have the funds to cover the difference between the appraised value and the purchase price? Most banks will not offer a loan for more than the appraised value.
(roof estimate for compete repair 11k) Our FHA appraiser is requiring a “roof inspection.” If the roof does need replaced (FHA requires at least 2 years of roof life) the sellers have agreed to replace it, but we would have to move the money around again and then the price of the house would then be greater than the appraised value of the house-the appraised value came in at 175, but the sale price would be more like 179.
I made an offer for a house for 155К – it is a short sale, and the bank approved it, but then I went to see the appraisal value and found out it was only 118К – I am about to close the sale, but now I am thinking to renegotiate the deal for for 120К.
Even the modestly rich with a $250,000 household income have trouble coming up with $200,000 for a down payment, and now they can’t get that conforming mortgage with the lowest rates because the amount they’re trying to finance is $800,000—the Fannie Mae loan limit for high-cost areas including San Francisco is $625,000 for a single-family home.
When is tapping your retirement money ever a "great" idea? When do the "old definitions" of reasonable housing costs get replaced by new definitions, created to excuse insane behavior? When there’s a real estate bubble, that’s when.
The surge in coastal-city real estate markets made sense until this year, when home prices in places like Silicon Valley and the wider Bay Area surpassed the previous bubble highs.
It makes sense to buy a place in San Francisco for half a million dollars, when average rents there hit $2,700 for a one-bedroom—if you’ve got the income, good credit, and $100,000 on hand for a 20 percent down payment.
This means that beyond the $200,000 down payment, you’ll need another $175,000, through a second mortgage or a "bridge loan" at 9 percent or through tapping out your retirement stocks, if you’ve got that much to bleed.
Now our well-off hard-working couple of Silicon Valley people have less than three grand a month for food, car payment, baby clothes, utility bills, yoga, wine, etc., or $675 a week.
Now your mortgage payment is officially insane: A first-mortgage monthly payment at about $2,800 for 30 years, plus your five-year second or two-year bridge loan at somewhere between $2,000 and $5,000 per month, plus your taxes and insurance and earthquake insurance and HOA or co-op fees, etc.
There is not a lot of pity in America for the affluent couple in Manhattan or Mountain View trying to stretch a $250,000 annual income enough to afford a pleasant house in a thriving metropolitan area that has everything.
Accounting for all the variables, the study found that if an agent was selling their own house they got a sale price 3.7% higher, on average, than if they were selling an identical property for a client.
By tracking the number of people who view your listing online, the number that click your listing to see more detail, and the number of and feedback from people who actually view, your agent should be able to get a good idea of whether your property is correctly priced.
Sounds far-fetched? In its recent "Whistleblower" programme, the BBC secretly recorded a London estate agent offering to set up a deal for a property developer in which he would "ring-fence" the home of an elderly gentleman who was hoping to sell.
What your agent needs to do is set your asking price so as to maximise the chance of you achieving the best possible sale price within the property’s price range, having taken into account your timescale.
For the extra effort that’s required to get the best price the estate agent only gets £133 or 1.8% (the average commission rate) of £7,400.
After a few weeks with no apparent interest in the property, it’s easy for the agent to persuade the seller to drop the price.
When we bought our house 10 years ago we paid 175,000 and within 4 years we sunk in another 50,000 adding another 2 story garage, made our driveway circular, 2 decks, finished basement yada yada yada, paid off our 50,000 equity loan 3 years ago and have never been late on payments, problem is now, the house is worth about 150,000 which is approx what our balance is on the mortgage and even though we continue to pay on our mortgage, we are the ones that have been screwed!!! while others around us now by their homes for 100,000 although their homes on the outside don’t have what ours have, we can’t sell cause we would lose our ass! so much for buying, adding to the value and selling at a profit… it’s the banks fault!!! All those interest free loans, no doc loans etc..etc..etc…I believe is what made us homeowners lose our butts and made them richer cause of all the money they made at closing on those homes… I think the banks need to pay or GREATLY reduce our mortgage… Why should we be in the hole because of banks all over the nation allowing these loans to go through.
rate if we dropped it to fifteen years, they say no, Why should we be punished for being the people that are commited and have been paying out mortgage and still they don`t want to help us, for this reason I feel the bank can have the house, all they want is money money money, they can still make money if they would refinance people like us that have a higher interest rat and have great credit, but no thay want everyone to have bad credit.
Pre-approval amount merely means that you can purchase a house with a loan up to $200,000 (in your example).  If you buy a house for $150,000, you will not take a loan out for $200,000 (the lender won’t allow you to).  Your loan amount will be <$150,000 (subtracting down payment from the house price).
Only if the purchase price is $150k BUT the house appraises for $200k and you qualify for $200k would the lender consider lending you the full $200k, otherwise, if the house only appraised for $150k, even if you qualify for $200k, the lender won’t loan you more than it’s worth.
the house cost less than the loan amount i’m approved where do the money left pver go.
You may be approved up to $200k but that doesn’t mean you’ll get a loan for the whole $200k if the house is only worth $150k.
how are people able to make updates to their home when they say they purchase a house for 130,000 and their loan amount was 150,000.
let’s say your house cost 150,000 your loan amount 200,000 where does the other 50,000 dollars go.
You cannot get a good mortgage rate without a big deposit and the loss of income should not just be assumed to be the loss of (risk free) bank interest because a deposit on a property is a very high-risk investment, so should be compared with far higher yielding risk assets e.g. 7% paying or even 10% APR Add to that up to 5% stamp duty, other costs of buying and the real risk of a drop in house prices and an almost certainty of a significant increase in interest rates and buying is only cheaper than renting (in the short-term) if you assume house-prices will continue their improbable rise.

Buyers tend to believe that banks will do anything to unload foreclosures, including letting the buyer buy that foreclosure for 50% of its value or less.
When buyers watch TV news reports that sensationalize foreclosures or read headlines that foreclosure filings are increasing, it’s normal for buyers to automatically jump to the conclusion that banks are desperate.
Market value might be 50% less than the last time the home sold, but that foreclosure price will generally reflect the value of the homes around it.
If a home buyer or an investor wants to buy a cheap foreclosure, it’s easy to assume that all foreclosures sell for pennies on the dollar.
Where to Find a Cheap Foreclosure to Buy I often receive calls from investors asking me about buying a foreclosure very cheaply, and the truth is it’s rare to find such a listing in MLS .
Why the Price of a Foreclosure Can Appear Cheap You can buy a foreclosure generally for much less than its original loan balance, especially in a declining market.
To find a cheap foreclosure, buyers need to reduce the competition for that foreclosure.

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