How to Find Inexpensive Homes

After the recent boom in the real estate market, house prices are through the roof. Despite the current downturn and present depreciation rates, many homes remain out of reach for many entry-level home buyers or homeowners looking for cheap homes.

If you're hunting for low cost real estate, keep reading for some tips, tricks and locations that could save you a lot of money.

1. Look for Short Sales

Short sale homes are one step away from being foreclosures. A short sale, essentially, is a situation when a homeowner and a lender agree to sell the house for a reduced cost to settle the remaining balance on the mortgage.

There are several benefits to short sale houses including reduced price, less competition from house hunters who keep their eyes on foreclosure properties, and a highly motivated seller. Because both the lender and the homeowner are keen to sell, you can often negotiate a great deal on price.

And, by the way, for those who might otherwise be inclined to feel guilty at the thought of purchasing such a home (under the notion that you are taking advantage of someone else's plight), keep in mind that the homeowner is selling the house at a lower price whether you make an offer or not. You actually help the seller by purchasing, so it's a win-win situation.

2. Look for the Unsellables

When looking for homes in a particular area, search for homes that have been on the market for more than six months. Not only will these houses have reduced asking prices, but their sellers will be more motivated to sell and therefore more likely to accept a lower offer.

You may wind up with a less-than-desirable home in need of some serious renovation, but for the price and value, you could find yourself in a great area at a fraction of the cost. When purchasing a home in need of some care and work, always have it thoroughly inspected prior to any transaction.

3. Relocate

If you're living in downtown San Francisco, Silicon Valley, Orange County or Manhattan, you may benefit from relocating. From urban centers like St. Louis or Dallas to rural areas in states such as Wisconsin, South Dakota or New Mexico, there are cheap homes to be found.

If your employment or career allows you the freedom to be outside high-priced urban centers, you can find real estate for low prices. Before you relocate for a lower cost of living, you should also think about available amenities, commute times, public transportation, proximity to health care, residential services, school systems and quality of life.

In short, it's still possible to find inexpensive homes in the United States. Whether it means relocating to a cheaper city or rural area, purchasing a home that doesn't come equipped with granite countertops, or keeping a keen eye out for short sales and foreclosures, it's doable.