The plunge in home values is causing a buying rush.
If you thought everyone’s packing their bags out of the Motor City for lack of opportunities, think again. A report by CNNMoney.com reveals that home buyers are snapping up the bargain prices in Detroit, with some buying more than 10 units all at once. That’s how low the prices are these days. In fact, you could easily own a home for $12,000. There’s no typo with that – it’s $12,000 or even lower.
The report states, “Recently a Californian purchased 178 properties, mostly one at a time, and most for under $10,000. Another has purchased six Detroit properties since September and hopes to begin buying five a month… The city’s average home price has sunk by a third to less than $80,000. But these cheap houses have got sales jumping, with volume up 23% in April compared with April 2008.”
So before you begin checking these foreclosed properties, we suggest you follow these three tips:
1. Ask a contractor to inspect the house first. If you don’t, you might end up spending more on renovation expenses than what you initially thought.
2. Maintain your communication with your lender. You have to realize that you’re not the only one storming the city for house shopping so you need to constantly remind your lender that you need the money as soon as possible before the price inches up.
3. Check the neighbors. You might get the house at a bargain, but you sure wouldn’t want to live where the area’s crime rate is high or it’s too far from your office that you’d have to be late for work everyday.
It’s an ideal time to buy but bear in mind the factors attached to these low-priced homes.