how to buy a house really cheap

The next stage of the national housing crisis is well underway, especially in communities that have been in the center of the implosion of the subprime housing market.
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These houses present intriguing opportunities to buyers willing to put some care into their rehabilitation.

However, since the amount needed to cover the debt is often much less than the actual value of the houses being sold, most buyers end up finding very inexpensive deals, often anywhere from 30 to 60% off the home's actual market value, including manufactured homes for sale.
These are unique pieces of  that are put up for sale as a means of collecting a debt owed by the previous homeowner. When a homeowner defaults on their mortgage loan, the lender will seek to sell their property as a means of raising the money to recover the remaining loan debt.
No matter what you're looking for, whether it's a single family home, luxury property or multi unit listing for rentals and investment, our database is full of cheap homes at low prices.
Buying cheap properties in this manner is a great way to ensure that you both save money and ensure a high potential profit through buying homes at bargain price.
One of the easiest ways people are finding cheap homes these days is through the growing market for foreclosures.
Other government houses for sale, such as VA foreclosures and Tax properties, all have different methods of getting to the same result: their desire to sell outweighs their desire to turn a profit against the real estate market.
Search: Pick through’s vast database of Foreclosed HUD Homes, VA Foreclosures, Fannie Mae Foreclosures, Freddie Mac Foreclosures, and other Government Houses for Sale. provides an exhaustive selection of HUD homes and government foreclosures listings, plus the specialized resources and tools you need to capitalize on your home investment.
The Web’s #1 Source for HUD homes, government foreclosures and houses for sale HUD Foreclosure listings and resources.
There are many ways to find hidden sources of instant equity in HUD Homes, VA Foreclosures, and other government houses for sale. keeps track of a large range of government foreclosures, such as Freddie Mac foreclosures, Fannie Mae foreclosures, and VA foreclosures all with savings comparable to those found when buying a foreclosed HUD home. maintains the nation’s largest database of Government Foreclosures, including HUD foreclosures for sale, VA foreclosures, Fannie Mae foreclosures, and Freddie Mac foreclosures.
 A short sale is a great way to get a cheap house, because the homeowner still owns the home (which means all the normal real estate rules apply), but the bank has agreed to let them sell it for less than their current mortgage.
A thorough inspection will be necessary, especially since most of these homes are also sold “as-is” – meaning the current owner (i.e., the bank or government) will not be making any repairs before handing you the keys.
That said, if you choose to go it alone, you can find foreclosures, short sales and all the rest through your state’s HUD office, Fannie Mae, IRS Auctions and Major banks like Chase will sometimes list homes for sale on their sites, as do some asset management companies like Keystone, United Country and Williams & Williams.
But sometimes the house is perfectly fine: I sold my first house as-is – with no major repairs needed – and the buyer scored a $20k discount, just because I needed to unload the house.
Through this program, eligible families can buy  a home at a 50% discount – you just have to occupy the home for the required period of time (so, all you flippers out there, this one’s off limits).  After the three-year occupancy period, you can sell the home – and keep the profits.
The biggest downside for you, as a buyer, is that you may have to wait a loooong time for the bank to approve your offer – because they are the ones holding the purse strings at this point.
Tifani Sadek, a lawyer who with her husband just purchased a home in the Woodbridge neighborhood for $94,000, pointed us to a site called Why Don’t We Own This, which compiles data on distressed properties in metro areas that can help people figure out what else they’re going to owe.
I have no idea what the real estate market in Detroit will look like down the road, but it seems absurd to think that a house could sell for $100.
I spend more time than I should on Zillow and dreaming about building a real estate empire… With Detroit’s bankruptcy, I started thinking about whether things could get better one day for Detroit, or was it doomed to go into deeper and deeper recessions year after year.
I heard a story about the Detroit government offering to trade residents houses for ones closer to each other as people were living with no one else within a number of blocks.
If you want to make a cheap, risky real estate investment, I’d bet on Detroit.
I watched a special on Detroit on CNN and they were talking about how if a whole block is abandoned that many of the houses likely have had all their pipes removed and you’d have to put a lot of money into it to make it functional again.
Even if you do that, is the neighborhood where you are buying even safe to go in? There are some areas in Detroit, and other large cities, that you don’t want to be just hanging around in.
As soon as the city bankruptcy was announced I definitely was curious to see what real estate was going for in Detroit.
Have you read that post on the guy who bought a house in a horrible neighbourhood in Detroit and renovated it all by himself? He lives there with his fierce dog now (and a rifle, I imagine) and is constantly working on working on his home and doing something for the neighbourhood.
Reminds me of a T-shirt I saw a long time ago… “Detroit, where the weak are killed and eaten.” The sad part is the city looks like it is working its way to this.
There are many cheap Detroit properties currently for sale, and now, anyone can buy these through real estate auction websites (such as ) which offer $1 no reserve auctions.
I would never buy a house in Detroit or any other blighted area unless I lived there, as several others have mentioned.
Now the question is are there any tenants left in Detroit? If I were to live there for whatever reason, I would surely buy a house.
Don’t know if this adds any value, but according to Zillow, there are 8 metro areas in the US that have lower average housing prices than Detroit.
.It could be that it is a misprint and at least 1 or 2 zeros were left out.You can get some good buys with foreclosures but keep in mind that you are buying a property as is with a bank and in most cases the bank will not pay closing costs.Therefore, it depends on what type of financing you are using.
Also, if you need closing costs help it could be a problem with a bank foreclosure.We offer homebuyer counseling as well as lender preapproval through our in house lender.
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.
I’ve been running this through my mind for years now and unless I leave the state or build in secret away from prying eyes (which wont ever happen, too much risk and at least in CA there are eyes everyhwere) or buy property and submit building permits (ha! Good luck!) then I can’t build my own sand bag home.
Rural areas with minimal codes are by far the best, lowest cost places to build with alternative materials such as earthbags.
Building a little at a time like this requires planning ahead for future doorways and other considerations, but it enables you to build debt free.
Ever wonder how to build a simple home for very little money, without going into debt? The key is to use low-cost, locally available natural materials such earth, small diameter wood and straw to keep expenses to a minimum.
Sounds like a great way to build a home, however in Indiana, USA we have to deal with building codes and permits.
Its rehabilitation mortgage insurance, available through FHA-approved lenders, was designed to encourage banks to issue a single, long-term loan to buyers that covers both the acquisition and rehabilitation of a property, according to HUD spokesman Brian Sullivan.
"Usually these homes are bank repossessions that the lenders have already tried to sell on the market, perhaps then put up for auction without success and then re-listed," he said.
"Foreclosures have turned banks into property management companies," said Heather Fernandez, a spokeswoman for, the real estate Web site.
NEW YORK ( — The real estate market is so awful that buyers are now scooping up homes for as little as $1,000.
Homebuyers and investors can save thousands of dollars by buying inexpensive foreclosure homes.
These homes do exist among foreclosure listings and can be smart purchases for homeowners and investors who have home repair experience.
Auction are very common among foreclosure listings and allow homebuyers to make their own offers.
Foreclosures are usually sold as short sales, auction homes or REOs.
Homebuyers and investors alike have a lot of gain by searching their local foreclosure listings.
Foreclosures allow homebuyers to save as much as 60 percent off the market value of any potential property.
When buying any foreclosure, have the property inspected and run a title search if there's time.
The Detroit Land Bank Authority’s Building Detroit auction site initially lists several city-owned homes in East English Village, a residential neighborhood on Detroit’s east side, with starting bids of $1,000 each.
The catch? Unlike the thousands of properties in the county’s foreclosure auction each summer, a winning bidder in the Building Detroit auction must agree to bring the home up to code within six months, and then actually live in it.
A new program introduced by Mayor Mike Duggan Monday addresses one of Detroit’s largest problems — thousands of vacant and blighted houses — by auctioning off some of the nicest ones to people who want to live in a Detroit neighborhood.
Winning bidders won’t just hand over a check and walk away; the city requires new owners to sign contracts agreeing to bring properties up to code and occupy them within six months of purchase or risk forfeiting the property.
Last week, the city began legal action against 79 vacant homes in the 16-block neighborhood, giving owners until Monday to contact authorities about their properties.
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Most of the time the homes which are in basically livable condition which are priced below $50,000, have multiple offers from owner occupant buyers.
If you want to hire me to help you find and purchase property at the bottom of the market, my compensation schedule works like this.
Your total cost might be in the range of $24,500-$26,000 for a house that you could live in with a very low payment or you may rent out for $850-1000 per month.
This will cover me for the time it takes to find the homes, and look at them and prepare and submit the offers.
Depending on the commission paid by the listing agent, your balance due at closing might range from $1,500-$2,780 and the closing costs would be around $1,000.
So if the house is priced at 19,000, that means the commission could range from $190-$570.
When you think about it, $3000.00 is approximately what the commission could be when someone buys a house in the range of $100,000.
Typically the listing agent notifies everyone that there are multiple bids and they call for “highest and best” by a certain date and time.
Well first of all I have been a full time Realtor licensed in the Atlanta market for 26 years.
For the last couple of years I have been telling callers to simply contact the listing agent because for me it was not cost effective to try to help.
This lets me relax and really work to find you the best house not just the first halfway decent option.
Believe it or not, it takes much more work to buy a house in the 25-35K range than to buy one in the $100,000 range.
Like I said in the previous thread on this, that price is probably more than the house is worth; if it were a screamingly good deal, those houses would have been snapped up by entrepreneurs already.
Sometimes the house needs lots of work to be able to get it up to occupancy standards, all the copper is gone, stolen for scrap metal, anything that could possibly be taken out and sold has been removed and the house is full of scary junk that will have to be removed at great cost in order to get it to the point where you can then start the expensive renovation work.
Of course I said no (there could have been huge structural problems with the house and thousands of dollars in liens which I could NOT have weathered financially), wished them luck selling the house, and bought another.
But what if all your tenants are delinquent in payment, or getting hauled off to jail, or they are trashing your house, and what if all the houses around yours continue to fall into disrepair, thereby decreasing the value of your home? It just seems like a big risk and a lot to go through to make it work.
Usually a good sized investment is needed to do bring that house up to code but the city doesn’t want to sit on a vacant house which continues to deteriorate for very long so they price it to sell.
there might be 20k liens on a house that sells for 5k, but the new owner is not responsible for paying off the original 20k in liens–the seller is.
When Jimenez arrived in Cleveland, he learned that the house had been vacant for two years; scavengers had torn apart the walls to get the copper piping, ripped the sinks from the walls and removed the boiler from the basement.
In Detroit, anyway, the new owner of said cheap house is responsible for debts left behind by the previous homeowner (who no doubt just spirited away and abandoned the house).
Basically, the city sells you a ghetto house for cheap (free, sometimes a dollar, sometimes a few thousand) and you promise to fix it up and live in it.
To answer your question — the reason nobody buys those $5,000 houses is, a $20,000 house is a big enough pain in the ass.
Terrible neighborhood, liens, house is condemned and must be knocked down, toxic waste problem, etc.
So a house goes for $4k, and it has $20k liens against it, you’re looking at a total price that’s stupid above market for the house.
The homes he purchases need major rehab, and IMHO are above the skill level of most of us, but are not the $1000 house we’ve been hearing about.
Scotiabank owned the house, and they wanted me to waive a number of conditions including the condition on a home inspection and to accept responsibility for any liens against the house.
I have read that the only people who make money on these properties are those who buy them for salvage, tear down the house and sell the pieces, then just leave the lot vacant and sell it off as a piece of land with a some rubble on it.
We purchased the land and paid the outstanding property taxes and leveled the house ourselves (it had been standing empty for 11 years).
About this time people started to call my friend and explain that he owed them money: utility companies, some bank who had the house listed as collateral on a loan, the previous jerkoff’s mortgage bank.
Here’s what we got for that price: Once all this stuff was fixed — which took us thousands of dollars and over a year of work — it was still basically a small, dark, cheaply made house from almost 100 years ago.
A short sale results when a homeowner who can’t afford her mortgage payments gets permission from her lender to sell her home for less than she owes on the mortgage.
With foreclosures and short sales, research the market before you buy so you'll recognize a great deal when you see it.
Because the homes are still occupied or only recently vacated, short sales are more likely to be in good condition than foreclosures.
"U.S. News & World Report" magazine recommends haggling with your real estate broker to reduce his commission and then asking the seller to reduce the price by the amount of commission cut.
The process of buying a foreclosure is generally smoother than that of buying a short sale, and the potential savings are similar.
In addition, her experience in assessing fair sale prices and managing complicated transactions will help to ensure that you’ll find a great deal and close the transaction successfully.
Although BankRate stresses that "anyone considering the purchase of a foreclosed home should forget about paying pennies on the dollar," 30 percent to 40 percent below market value is possible, and at least 5 percent below market value is likely.
They can also be terrific bargains, as lenders are motivated to sell before the homes go into foreclosure to avoid the expenses of foreclosure and listing the homes for sale.
Although it’s possible to go it alone, a real estate agent has access to more listings than you’ll be able to find on your own.
The main drawback of a foreclosure is the potential for deterioration from the house having sat vacant and unmaintained for an extended period of time.
Although contingencies weaken your offer, "cheap" turns into "expensive" very quickly when serious defects in the house are discovered after closing.
She is a licensed real-estate agent who specializes in resort real estate rentals in Ocean City, Md.
On the upside, if you use the bank that owns the house as your mortgage lender, it may waive closing costs.

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If you’re walking or driving through a neighborhood you like and see someone out in their yard, why not ask them if they know of any neighbors looking to sell? If someone is getting their house ready to list, you may be able to work out a deal directly with the seller without having to factor in buyer or seller agent commissions.
The odds aren’t great, but if you stumble upon someone who wants to sell but doesn’t have the time to get the property in move-in condition, you could work out a terrific deal.

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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