Do you have a couple thousand dollars in the bank? If so, you could become a homeowner. According to Yahoo Finance, the real estate market is so bad, that some homes are selling for just a couple thousand dollars. In fact, according to Realtor.com, there are about 18 listings in Flint, Michigan for under $3,000. There are also around 22 in Indianapolis, about 46 in Cleveland, and over 700 in Detroit.
So why are the homes selling for such low prices? All of those communities have been hit hard by foreclosures, and most of these homes are being sold by the lenders that repossessed them. With prices this low, lenders aren’t looking to make any money on these deals. They just want to get these houses off their books so they don’t have to bear the cost of maintaining them and paying property taxes.
What kind of home can you buy for such a low price? These houses are almost always small fixer-uppers. For example, in Detroit, Century 21 Villa owner Randy Eissa has a 3-bedroom, 1-bath bungalow of about one-thousand square feet listed at just $500. It’s a nice place with lots of light, but it needs a TOTAL rehabilitation inside. Eissa estimates the remodel will cost between 15 and 20-thousand dollars. However, that’s still not a bad total price – considering the website Zillow.com reports that the home last sold for $72,000 in late 2007. Another example: A property for sale in Birmingham, Alabama is priced at $1,900. The one-bedroom, one-bathroom home has major fire damage, but it’s on a nice-sized lot. Nearby, comparable homes in good condition sell for about $100,000, according to Zillow.
Now, there are some issues that could pop up with some of these homes. Often, buyers are legally required to rehab these homes to bring them up to code. Also, they’re generally not in the best of neighborhoods and they’re often surrounded by many other vacant and deteriorating homes. However, most of these homes can be renovated relatively inexpensively, and buyers may actually be able to get government help to finance these repairs. Also, some of the neighborhoods may turn around and provide residents with good, cheap housing. No matter how much a house costs, you should always do your research and make sure you’re not jumping into something too quickly.