George Wolf
Aug 25,2008
In: Cheap Homes

Cheap Homes for Sale

There is a surfeit of cheap homes for sale right across USA as never before. Whether it is a blessing or a curse depends on how one looks at it. For some cheap homes for sale spells disaster and for others cheap homes for sale is a boon. Good or bad such a discolouration in the market has not taken in the country since Man walked on the Moon for the first time!

The increasing number of cheap homes for sale is a directly linked with the foreclosure crisis. The peddling of sub-prime mortgages with teaser rates triggered off this catastrophe. The cheap homes for sale are because the prices of new houses are down by 13% since March 2007’s peaking. The sale of the latter had dropped by 39%. This makes it a real estate record since 1970. However although there are many cheap homes for sale the price and the numbers are not uniformly spaced across the country. According to Winans International Real Estate Index of new houses, the maximum numbers of cheap homes for sale are in the west. The Midwest has come off the best with the least number of cheap homes for sale and most number of houses being sold.

Cheap homes for sale offer good opportunities to those who want to realize their dreams of owning a house. But a word of caution creeps in. A novice should not walk in to the cheap homes for sale without having done some homework. There are broadly speaking three types of cheap homes for sale on the shop shelves.

The really dirt-cheap homes for sale come from the foreclosure category. But the risk is that one has to buy it at auctions, cash down, without getting a chance to see the inside of the house. These are sold on an as is basis. But usually these units are badly damaged – first by the departing frustrated borrowers and secondly by the vagrants and vandals that snoop around empty houses spreading fire and terror. These houses may apparently be cheap homes for sale but they need huge funds for renovating and redoing. In many cases these cheap homes for sale are beyond repair and have to be demolished.

Some cheap homes for sale are listed on the pre-foreclosure stage and these present the best opportunities for a snap bargain deal. Both the lender and the borrower being eager to sell the unit and the latter being in occupation of the house puts their best foot forward to show keep the house in shipshape condition.

The third type of houses is those that have been repossessed by the banks after having failed to make it at the court auctions. Here again the house is showed in a good condition because of the bank’s interest in a speedy sale. Today banks are wooing buyers with unimaginable discounts. Moreover the repossessed houses are free from tax or mortgage liens. A discerning eye will not fail to pick up a prize from the lot.