I had a conversation this weekend with a young gentleman when our conversation turned to real estate. Knowing that my profession dealt with real estate he asked me how he could buy a house for $100. I wasn't sure where he was going with this but I bit. "Homes for $100??" He went on to tell me he saw ads on TV saying you could buy foreclosure homes for as little as $100., and he wanted to know where to find them.
I am not sure about most of you, but I am pretty sure I have never heard of homes selling for a hundred bucks unless it was family passing on property to relatives. There are sheriff sales for liens owed on a property. Some for tax liens, foreclosed mortgages and mechanics liens. As far as I know, most liens are more than $100. So where are these bargains?
The media and our current economic environment is misleading a whole lot of new investors into the marketplace. I see it all the time. People looking for foreclosures and short sales. Everybody wants a bargain. In a lot of cases, a bargain isn't a bargain at all. I want to urge consumers to educate themselves before blindly trying to become an investor.
This is, however, a good time to buy a home. Interest rates are low, inventory is high, and prices have been lowered. To top it off there is aan $8000. tax credit for first time home buyers who qualify. ( 10% of purchase price up to $8000.)
Don't waste your time looking for $100. houses, find a trusted mortgage person and a good real estate agent and see what you can do!
P. S.- The reason I wrote this post in the first place was to see if anyone had any good bargain stories. How many $100. homeowners do we have out there?