Shopping for a Bargain Home

By B. Conrad
Photo: © Orange Line Media - Dreamstime
There is no doubt that there are bargains in today's real estate market—the key is to know what to look for and what to avoid. With mortgage rates still low, buyers who are able to get a bargain will come out ahead when their market turns around.

Don't be fooled by the asking price. These days it is a buyer's market, and that means buyers have lots of wiggle room when it comes to price. In this market the asking price is a good place to start, but chances are there is plenty of room for negotiation. Taking a look at comparable sales in the same neighborhood is a great way to figure out what the property is worth in the current market.

Don't be afraid to ask for extras, especially when buying a newly constructed home. The bursting of the real estate bubble has left many builders desperate to move their finished properties, and that can mean plenty of goodies for those with money to spend.

Tread carefully with distressed properties. With so many foreclosures and other distressed properties on the market, it is tempting to look for that great bargain. It is important, however, to know what you are getting into before signing on the dotted line. Some homes may need nothing more than a little TLC and some cosmetic repairs, while others could have structural damage that is bad enough to make them unlivable. Don't jump in over your head when it comes to a home that needs fixing-up; get several repair estimates before going forward with the purchase.

Be patient, but don't wait too long. At the height of the real estate frenzy many buyers flocked into homes they could not afford because they were afraid they would miss out on a sure thing. If there is one thing the bursting of the real estate bubble has taught us, it is that patience is still a virtue. The buyer's market we are seeing today is likely to last for quite some time. Still, with interest rates increasing, if you find the property you are looking for at a great price, you shouldn't hesitate to buy.