Published on Friday, October 16, 2015 by Land Century
But, you can find homes well below market value if you know where to look.
Finding Cheap Housing in Any Area
There are houses everywhere that are going for low prices if your expectations arent unrealistic. You wouldnt expect to find a home in an affluent neighborhood for 40% below market value. But, if you are flexible, there are so many opportunities available.
The handyman special can lead to severe drops in a homes price. These are homes that need work, and this doesnt always mean a new foundation, roofing and mold removal. All of these are major undertakings that may negate the homes price even when its in mint condition.
And, some of these homes have perfect roofs, foundations and structural components, yet they lack the updating needed to boost their value. You can browse latest cheap houses for sale here.
These homes always pop up on the market. Youll want to look for homes that need minor work:
* New carpets / flooring.
* New cabinets.
* Updated painting schemes.
* Updated windows.
* Updated bathrooms.
Keep in mind that kitchen upgrades can be very expensive, so youll want to see if you can reface the cabinets and make changes that wont cost $10,000. The goal is to do all of the work yourself, or most of it. Dont worry. There are a lot of DIY videos on YouTube and other destinations that will help you get through most of these repairs with ease.
One thing you do want to note is that mold can deem a home inhabitable. Sometimes, the mold is so bad that the home needs to be knocked down. If you do plan on buying a home that has mold, talk to a professional mold removal company first to discuss your options. This is a very risky investment in most cases.
These are the homes that handymen will buy, renovate and sell.
But, you also have the option of living in the home yourself or renting it out when its complete. Depending on the area, you can expect prices 20% - 50% lower than average depending on the state of the home.
If youre not willing to do all of the work yourself, contact a contractor and have them assess what work needs to be done on the home and provide you with an estimate. Even if you turn a $5,000 profit, it will be a great investment.
Cities with Low-Cost Housing
If you live in an area where home prices have skyrocketed, dont be fooled into thinking that this is happening everywhere in the country. Sure, prices are going up everywhere, but an expensive home in Atlanta may cost 2 or 3 times the cost of an expensive home in Arkansas.
What cities have the cheapest housing?
* Parma, Ohio
Just 10 miles from the rustling city of Cleveland, you can find large 4 bedroom homes with 2 full baths for just $110,000 in Parma. Imagine what the price of a fixer upper would cost in the area?
* Zion, Illinois
Youll be between Wisconsin and Chicago, but Zions historic past allows for beautiful scenery and very cheap homes. A 4 bedroom home in Zion averages $107,000.
* Utica, NY
New York is known for having some of the worlds most expensive homes in the Big Apple, but there are also cities like Utica that have cheap homes. Youll be 55 miles from Syracuse, enjoy beautiful views and take advantage of home prices as low as $107,000 for a 4 bedroom, 2 bathroom home.
* Cheektowaga, NY
Scenic and beautiful, the city of Cheektowaga is a suburb of Buffalo, so expect very cold winters. But, you can also buy a 4 bedroom home for just $101,000.
The city of Buffalos average home price for a 4 bedroom home is $97,200.
* August, GA
The beautiful city of Augusta is 145 miles away from Atlanta, and the home prices are below $100,000 for a four-bedroom home.
* Lake Wales, FL
Just 54 miles from Orlando sits the gem of a city called Lake Wales. The city is small with beautiful lakes and a lot to do. But, what non-residents dont know is that you can find your dream home for $82,330 on average.
* Riverdale, GA
Right outside of Atlanta sits the city of Riverdale. A very small city, youll find homes with an average price of just $68,000 for a 4 bedroom, 2 bathroom.
* Cleveland, Ohio
Its amazing to think that a bigger city like Cleveland would have affordable housing, but its prices are so cheap, you may think its a suburb. The average 4 bedroom in Cleveland costs just under $65,000.
Many of the cities listed above have other opportunities, such as large land parcels for sale and rental opportunities. Of course, there will be factors that are keeping the home prices down. Bad climates or local economies are certainly a concern when prices are so low. However, that doesnt mean that many of these areas arent on the uptick, or that you wont be able to find even cheaper opportunities where you can fix up the home and sell it for a profit.
Cheap homes dont always have to be the traditional home either. Many people will find mobile homes for sale and turn away from the opportunity. This is an unwise choice in most circumstances. While mobile homes definitely do not retain their value, mobile homes that have a foundation will maintain their value. So, check out the local prices in the area before discarding mobile home opportunities.
We didnt cover the option that you already know: foreclosures. These require a lot of diligence to be taken on your part, and foreclosures can be a risk if there are liens against the property. But, you should consult with local banks in the area and realtors to see what foreclosures are on the market there are always great opportunities available.