How to Find Cheap Old Houses?
Believe it or not, you can create a small fortune investing in cheap old houses. Here's how to find them.
If you are looking to enter the real estate market, there is a chance that a cheap old home will be on value to you. There may be several reasons why you would opt for an older home. And price is likely to be the biggest one. Not everyone is wanting to purchase the biggest beachside mansion. Some can find the value in an older property. And there are some tricks on getting your hands on an older property on the cheap.
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Why are some houses really cheap?
Everyone loves a bargain, and it’s no different when it comes to real estate. If you are lucky and know what to look for, you can snag yourself a bargain. Of course, these homes that comes extra cheap will have a reason for it. No one is that lucky to pick up a perfect quality house on the cheap. Keep your expectations realistic and you can turn a cheap old home into a good future investment.
Some of the old cheap homes will be like that way because they have been left in disrepair and the seller does not want to be bothered fixing them. Or they could be in an area that is no longer considered to be booming. Foreclosures are also another reason why many older homes go cheap. Foreclosures are in more detail further ahead.
What does it mean when a home is foreclosed?
You may notice that many of the cheap old homes you see on the market are listed as ‘foreclosed’. So, what does this mean and is it a good investment opportunity? Home Light explains that a foreclosure is a home that has been put for auction by a bank. Usually this is because the owner has been unable to make their mortgage repayments, so the bank has taken it from them. Foreclosure sales account for just over 10% of all real estate transactions.
So, if you are wanting to purchase a property for well below market value, finding a foreclosed property is the way to go. The bank is looking to make a quick sale and will be more open to negotiations. Often you will have to be a cash buyer, but if you are able to swing the cash, you can make an exceptionally good deal.
Of course, not all foreclosed homes are old, but the older ones will go at an even more reduced price. If a house is harder to sell, the bank will be more likely to make the price lower. A quick sale is if upmost importance for a foreclosure.
Where can I find cheap old homes?
Like many things, the internet has a wealth of information. If you are specifically looking to purchase a cheap old home, then there are certain search engine websites that specialize in this. Some examples of good sources for cheap old homes include the following.
Cheap Old Houses have worked out that there is a market for the sale of cheap, older homes. The specialize in homes under $100k and are nationwide. Most of their homes require a fair bit of work, but if this is what you are looking form you will find what you want here.
The description is in the title. They list homes that are old and priced at or under $50k. The provide photos and descriptions of each home so you will know exactly what you are getting for the price. Like other old home websites, these homes will require upkeep and work. If you are willing to spare the time and resources to fix these up, you could really raise the value of your investment.
Circa Old Houses has the largest variety of old homes on the internet and are not a niche as the other sites. The specialize in older homes and land priced under $250k. Their homes are available all over the USA and even in Canada and Europe. The list over 2,000 homes every year, so if you are not sure exactly what you want, chances are you will find something here.
If you are specifically wanting a foreclosed home, then you will want to have this as your main home search engine. They list foreclosures in all 50 states, and you can even sign up for foreclosure property alerts. There are massive savings to be made in foreclosures, and if you have the money ready and are quick to act, then a foreclosure could be perfect.
Why purchase an old cheap home?
The main reason to purchase an old cheap home is self-explanatory. They are old and cheap. Once you own the home, it is yours to do with it what you will. Anything old can be made new again, and if you have patience and know how, you can turn an old cheapo home into something of high value in the market.
If you are wanting to know what it is like to purchase and renovate an old cheap home, you should check out The Cut. They are full of inspiration and real-life stories of people who have purchased old cheap homes and made a huge profit. There is a certain charm to older homes, and often they just need a little bit of tender loving care for their real character to shine through.
If you know where to look and can see past cosmetic flaws, purchasing and old cheap home could be a perfect investment opportunity. The fact that there are so many sources specializing in old cheap homes shows you that there exists a good market for them. No matter where you are looking, there will be an old cheap home available that will suit your needs.
Charles is the founder of infoSpike.com. His real estate investing experience started in 2004 and he is currently focused on rental property projects. He enjoys learning about real estate investing, personal finance, and marketing. Read more about Charles here.