Ask anyone who owns a television or reads a newspaper… it’s a buyer’s market. The inventory of available houses for sale is huge. More sellers than buyers can mean one thing, OPPORTUNITY! If you’ve been considering purchasing a home, the time is now.
While there are many homes with "bargain basement" prices, nicer homes in well maintained condition and nicer areas are still hot items. The way to profit quicker in this market is to find the ugly houses. With so many to choose from, the houses with deferred maintenance and low curb appeal have to sell for lower prices in order to compete for the scarce buyer.
When buying one of these "fixer-uppers" there are a few things to keep in mind. First, it may be more difficult to obtain financing if there is much deferred maintenance, especially if you are not putting 20% down. Second, make sure you have enough money in reserves to complete the renovations. Be careful about borrowing 100% of the value of the home. It’s risky.
Finally, if you are hesitant to buy a home because you need to sell one, remember, if your house is in nice condition, it’s still likely to sell quickly. And if you’re waiting for home prices to go up before selling, know that the price where you buy will be going up too.