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Not all cheap homes are good bargains

Some of us live in ridiculously cheap homes; apartments and houses we would never had thought we would buy or rent at the price we got them. However, what we fail to realise at that instant, probably due to the excitement of getting a new place to live at an amount entirely below your budget is that the house came cheap for reasons best known to the landlord but not far-fetched.

When items are discounted at a mall, grocery store or supermarket there’s always a reason especially if its not a black Friday. Maybe the item is a little bit stale or the has been discontinued. Before buying any discount produce, you should probably understand why it is being discounted. The same is true for homes and while there are many cheap homes on the market, learning why that real estate is selling or leased for such a low price will go a long way towards telling you just how worth your effort that property may be.

There are some common reasons why property sells for a low amount or may be listed for a low price initially. Some of these reasons may indicate a home you do not want to get involved with but some may indicate a good deal. When you see a cheap piece of real estate on the market, evaluate it to see which of these situations it falls in to.

A Less-Than-Stellar Area
The location of a home affects its value profoundly and while that can mean great things for a home owner in a posh location, it can also mean suppressed real estate prices in an area that is anything but awesome.  There are areas in Lagos state that have a massive population of people because of the low-cost housing inherent in such places but does the uncomfortable atmosphere, environmental degradation high crime rate, insecurity and other anomalies and social malaise that characterize such areas make such acquisition what one would want to call a “fool’s gold”. The future fortune of a neighborhood will directly translate into whether your real estate investment or home price swings up or not.

Read also: ‘Poor infrastructural mechanism is a major challenge in low cost housing’

The Fixer-Upper
We have all seen homes that simply need work. For whatever reason, the current owner has simply grown tired of updating a home and that state of disrepair translates into a steep discount in the home’s sale price. If you do not have the stomach to go through the arduous process of repairing a home, these cheap pieces of real estate are certainly not for you. If you are not scared off by the prospect of some labour, these can be great targets.

The Speed Sell
Sometimes a seller needs to sell a property fast, whether to get out of town for relocation or to quickly liquidate some assets. These types of homes present the best opportunities for prospective buyers as these pieces of real estate suggest the least amount of problems. Of course, these homes get snatched up quickly, the very goal the seller has in mind, so finding them can be a bit of a difficult prospect. The best tactic is to monitor an area of town or maintain searches on a set of criteria on a regular basis to turn up all of the new homes that get put on the market every day. The real estate market is a competitive arena, so make sure you are doing all you can to get an edge over the rest of the prospective home buyers out there.

The Mystery
The rest of the cheap homes generally fall in the mystery category and these pieces of real estate are the ones that you need to be most cautious about when investigating for a possible purchase. Homes are always cheap for a reason and there is certainly a reason buried somewhere in the floorboards. Is it near an airport? Does a railroad run through the backyard? Is it close to industries or a major road of high vehicular movement where traffic is the order of the day? Is it located on a graveyard? Do vampires live there…lol (just kidding)? Is it a place where criminals dwell?

Not all mystery homes hold mysteries that are this obvious but the seller is obligated to disclose anything that affects the value of the home, so just make sure you and your real estate agent ask the right questions.

Doing your homework on why a piece of real estate is selling for the price it is will go a long way towards determining the worth of a potential investment or home purchase. Cheap homes can look attractive at first glance and then lose luster with further inspection. Ask the right questions and do the right research so that you too can make that determination accurately to avoid potential headaches later.

Read also: TENEMENT BUILDING: the popular ‘FACE ME I FACE YOU’ house

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