Finding a Great Deal

Let's take a look at some of the ways to save money on a home purchase.

This seller isn't just trying to sell -- he has to sell. It could be for any number of reasons, but here are a few common ones:

Though some buyers dismiss older homes out of hand, they can be a great deal -- especially if they've been owned by the same family for many decades.

Sure, the decor might be dated, and the home might have that (very) lived-in look. But long-time owners often owe little or no money on their mortgage. If they own the home outright, they don't need to worry about selling for enough to cover their mortgage debts. And new carpet, paint, and light fixtures are a cheap way to bring new life into an older home.

Usually, an estate sale takes place when the home's owner dies or moves into an assisted-living facility. Whoever inherits the home (or gets legal control of it) can then sell the home and collect the proceeds.

Why are estate sales a good opportunity? First, the seller usually has less emotional attachment to the home. In many cases, they simply want to sell the home as soon as possible and move on with life. Second, estate sale homes are often extremely lived-in, which can make them less attractive to buyers who want a home in move-in condition.

When there's no one appointed in the home-owner's will, the courts will usually appoint someone to handle the sale. This is known as a [define: probate-sale | probate sale]]. Because you're dealing with the court system, probate sales can be much more work; we usually recommend that first-time buyers avoid them. For more perspective on probate sales, visit our forums.

We mentioned above that many short sales can fall through because the seller's lender isn't satisfied by the terms, or refuses to accept the necessity of a short sale at all. A hardship package is basically a stack of paperwork that documents the seller's current financial difficulties. When a seller provides a thorough and well-documented hardship package, the short sale is much more likely to succeed.

Read more about hardship packages on our short sale page.