{"id":2245,"date":"2016-01-13T18:12:33","date_gmt":"2016-01-13T22:12:33","guid":{"rendered":"http:\/\/dankrell.com\/blog\/?p=2245"},"modified":"2022-12-13T10:20:07","modified_gmt":"2022-12-13T15:20:07","slug":"real-estate-bargains","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2016\/01\/13\/real-estate-bargains\/","title":{"rendered":"Real estate bargains"},"content":{"rendered":"

\"real<\/a>The typical real estate investor and the average home buyer have something in common \u2013 they both are looking for a home that makes financial sense, a bargain if you will. After all, who wants to overpay for their home? Although the investor\u2019s priority is purely financial, a home buyer\u2019s priority is a mix of lifestyle requirements that fits a budget. Even with priorities in line, both investors and home buyers don\u2019t always recognize a bargain when it presents itself.<\/p>\n

Finding a bargain home<\/a> is not as easy as some will have you believe. Bargain hunters typically look for distressed properties such as foreclosures (also known as \u201cbank owned\u201d or REO homes) and short sales. Although there was abundant opportunity to buying such homes immediately after the housing crash, many were hesitant due to lack of market confidence. However, as confidence was revived in the housing market, the courthouse real estate auctions were once again attended home buyers and investors looking for good buys. And as home prices increased, so did the price for distressed properties; making it more difficult to find the bargain home. Even \u201cmotivated\u201d home owners may not be as motivated as you think in today\u2019s market.<\/p>\n

This phenomenon is corroborated by a recent study of \u201cbargain homes\u201d by Trulia\u2019s research blog. Ralph McLaughlin reported on January 7th<\/sup> (Where Is A \u201cBargain\u201d Really A Bargain?<\/a><\/em>; trulia.com) that advertised bargains were actually good buys in 55 of 100 housing markets. Furthermore, hot markets tend to offer less price discounting than cooler markets; home sellers are less inclined to make price reductions in markets where there is increased buyer competition. Locally, the Baltimore metro region was found to be in the top discounted markets for bargain homes (with an average discount of 11.3%); while the Washington DC metro region was found to be in bottom of discounted markets with an average of 4% discount on a bargain home.<\/p>\n

It\u2019s clear now that home prices were at the bottom during 2008-2009. At that time, home inventories swelled and there was an abundance of (what would seem today) \u201ccheap\u201d homes for sale. I wrote at that time (If Cheap isn\u2019t Selling, What is?<\/em><\/a>; May 28, 2008) about how cheap homes were not selling, and how home buyers changed their focus from \u201cbuy anything\u201d to buying quality homes that impart value. Of course, one of the main reasons cheap homes were not selling quickly was that there was an additional cost associated with the purchase; most of the cheap homes were distressed and required rehab, or at the very least needed updates and minor renovations.<\/p>\n

For most investors, the concept of a bargain home is strictly the result of numbers in a formula; and for some home buyers, the bargain may be about getting a good price. However, a bargain home could be more than just the price tag. Maybe the bargain home is also the \u201cvalue added\u201d home<\/a>. Rather than just focusing on price, buyers should also be aware of a home\u2019s potential. Of course there is always risk when buying a home, which we experienced during the financial meltdown eight years ago.<\/p>\n

Regardless, many lament having not bought homes at or near the price bottom. But hindsight is 20\/20. And what didn\u2019t seem like a bargain just a few years ago, is in comparison to today\u2019s increasing home prices and an active housing market, a missed opportunity.<\/p>\n

Google+
\nCopyright \u00a9 Dan Krell<\/p>\n

If you like this post, do not copy; instead please:
\nreference the article<\/a>,
\nlike it at facebook<\/a>
\nor re-tweet<\/a>.<\/p>\n

\"Protected<\/a>
\nDisclaimer<\/a>. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

The typical real estate investor and the average home buyer have something in common \u2013 they both are looking for a home that makes financial sense, a bargain if you will. After all, who wants to overpay for their home? Although the investor\u2019s priority is purely financial, a home buyer\u2019s priority is a mix of … <\/p>\n

Continue reading “Real estate bargains”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[275,270,160,405,288,47,416,13,36,26],"tags":[1029,504,490,879,466,925,797,812,593],"class_list":["post-2245","post","type-post","status-publish","format-standard","hentry","category-distressed-properties","category-home-buyer","category-home-buyer-behavior","category-homebuyer","category-housing-market","category-market-report","category-market-timing","category-real-estate","category-real-estate-investing","category-real-estate-market","tag-bargain","tag-distressed-property","tag-home-buyer-2","tag-home-buyer-behavior","tag-housing-market-2","tag-market-timing","tag-real-estate","tag-real-estate-investing","tag-real-estate-market-2"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-Ad","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/2245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=2245"}],"version-history":[{"count":9,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/2245\/revisions"}],"predecessor-version":[{"id":6608,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/2245\/revisions\/6608"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=2245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=2245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=2245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}