| Real estate investors know how to make money | | | | Perhaps the seller needs to close quickly; in this case, |
| buying distressed houses. Investors recognize that | | | | a buyer ready with financing in place with a lender |
| bargain houses offer the best way to make a return | | | | who acts fast can make an offer with a short |
| quickly.Bargain houses also open up a way for | | | | escrow. Prepare yourself for quick action by getting |
| first-time home buyers to buy with little or no | | | | your credit and financing in order before you go |
| savings for a down payment. If you want to reduce | | | | home shopping.How to Buy a Distressed HouseYou |
| the amount of down payment needed to buy a | | | | must understand that a property also needs to |
| house, get the seller to pay your closing costs. In a | | | | qualify for financing. Extreme fixers in poor condition |
| hot seller's market when more buyers compete for | | | | don't qualify for a 100% purchase loan. However, |
| the same properties, you either need to increase the | | | | houses needing only cosmetic upgrades easily pass a |
| purchase price to cover your closing costs or find a | | | | lender's inspection. If you find a great bargain fixer, |
| distressed seller.A bargain house may be in bad shape | | | | make sure that the house will pass health and safety |
| or the seller may be distressed. Home sellers who | | | | codes. Sometimes home buyers will help the seller |
| suffer from problems such as job loss or transfer, | | | | with little changes that make a house "loanable." Minor |
| divorce, death, pending foreclosure, and lack of funds | | | | changes like covering exposed wires with switch |
| sell fast for less. Often these sellers offer incentives | | | | plate covers, which cost as little as 19 cents, and |
| to the buyer, like paying the buyer's closing costs.A | | | | repairing broken windows can make the all the |
| distressed house may also be a "doghouse," a dump, | | | | difference in passing inspection.If you need help with |
| or a fixer. Owners of fixers are not always | | | | your closing costs, find yourself a distressed seller |
| distressed sellers, but they may still feel pressure to | | | | under pressure to sell. Not only will you get help with |
| get rid of their problem house.How to Find a | | | | funds needed to buy a home, you might also get a |
| Distressed SellerLook for listings and advertisements | | | | great purchase price and be on your way to making |
| with the words "make offer," "fixer," "must sell | | | | your future investing in real estate.Copyright (c) 2005 |
| immediately," "handyman's special," "divorce," "owner | | | | Jeanette J. Fisher-All Rights Reserved.Jeanette Fisher, |
| transferred," and "owner help with closing costs." If | | | | author of Credit Help! Get the Credit You Need to |
| you see two or three of these clues, you know | | | | Buy Real Estate, Doghouse to Dollhouse for Dollars, |
| you've found an anxious seller.Discovering the seller's | | | | and other books teaches real estate. She loves to |
| problem and finding a solution is the key to buying a | | | | help first-time home buyers get into a home. |
| bargain property from a seller under pressure. | | | | |