On The Bargain Hunt

On The Bargain Hunt
Most commentary on the plight of foreclosure, slow sales and dropping prices seem to point to a great advantage for anyone poised to buy now. So are there any solid real estate bargains to be had, and if so where?

Just two months ago is seemed the sky was falling. The markets tanked, the real estate bubble burst and people lost jobs, retirement funds and houses. The market finally called in debts that were far overblown and a vast number of people took a hit. For a time, everyone recoiled in the horror of the losses of others and the fear of their own personal loss. Now, anyone who had not been over-extended is looking around at all the spoils left in the market with piqued interest. Yet with awkward short sales and foreclosure restrictions that can drop a solid deal out of escrow in a heartbeat, people have only one question on their minds. Are there really any good deals out there and if so, where are they?

Many look at this question timidly and with much reserve. They feel as though purchasing these properties is the realm of vultures, looking to pick over the unfortunate losses of families stricken by the market meltdown. There is definitely this element out there as wealthy investors pool resources and purchase unsold, near-foreclosure and foreclosed properties at pennies on the dollar. Yet this is just as natural a process in economics as a forest fire clearing land and generating fresh soil for new plants and trees to grow. This process will clear the overstock and pave the way for a return to market normalcy. Furthermore, if these properties go to single purchase end-users, instead of more speculators, stability will return to the market.

So how do you find the great deals that everyone is talking about? There are massive campaigns currently on Craigslist and Facebook which feature coupons for "No Money Down Financing" and show prices slashed. Some ads even offer access to a 'secret' collection of listings which can turn the bad economy into a 'gold mine'. Yet these seem to lack credibility and forward the vulturish feel of the new market. Furthermore, they offer little to no information on the metrics by which these offers qualify as great deals. With market valuation already the hardest variable to nail down, this information is essential to understanding the real value of any proposed deal.

The search options on condo.com let you view their extensive inventory of properties, worldwide. Yet to take it a step further, advanced options let you filter these results by a bargain basis. The metrics of this are simple. Take the average price of all condos of similar size and amenities in that area, and then compare the current price of a particular property against that. The resulting percentage above or below that median price determines whether it is a bargain. The options on condo.com's bargain search let you see properties that are 10, 20, 30, 40 and even 50 percent and more below the average market price.

At properties like the Mirador on Miami's exclusive South Beach, you can snag a 1 bedroom, 1 bath condo for a mere $157,000. This is a full 68% below the average market price for the area. At Caravelle, on New York's Upper East Side, grab a 1/1 unit with stunning views of the East River for just $419,000, which is still at a 50% savings based on median price. On the west coast, take advantage of the market glut and grab a 3/2, 1182 sq ft unit in San Fernando, CA for an unbelievable 109,900. None of these properties are foreclosures, although those exist within the search results as well.

The bottom line is that the best place to find cheap properties is in markets that have been overbuilt and over speculated. Remaining vacant inventory, after the targeted market has left the table is going to be the low hanging fruit. The key to getting these properties is to be poised and patient when stalking and fast and efficient when the deal is going to be struck. Do all your research first, including speaking to real estate professionals (both agents and lawyers) to guide you through the process. Have your loan approved and ready as a strong position can garner even more of a discount. Finally, don't be too shy to haggle as buyers are in a better position now then ever before to get the deal of a lifetime, if only they are willing to seek it out.