The Killeen real estate market is recovering, but, fortunately for the bargain hunters, that doesn't mean there aren't still good deals to be had. The...
The Killeen real estate market is recovering,
but, fortunately for the bargain hunters, that doesn't mean there aren't still good deals to be had. The number of closed sales is rising in many areas, but prices are still fairly competitive in most neighborhoods, which means that if you know what you are doing, you may be able to find your dream home for a good price.
Since housing values will continue to rise as the market improves, this may be a once in a lifetime opportunity. Here are a few ideas to help you find a good price on your next home.
Buy a foreclosure or real estate owned property. When a property is foreclosed on, usually it is the bank that ends up owning it, as opposed to selling at auction to another buyer. These bank-owned properties are also known as real estate owned, or REO. REO properties generally sell for less than comparable homes in the neighborhood that are being sold by the owners under normal circumstances, since banks are usually interested in getting their money back out of the property. Therefore, you will be able to buy a home at a savings now, which will look like an even better deal in a few years, after the market has stabilized and property values have gone back up!
A word of caution, though: Sometimes buying a foreclosure has hidden costs. Make sure there are no other liens on the property, and find out if there are any debts owed, such as an unpaid water bill or property taxes. Often someone who hasn't been making their mortgage payment also hasn't been paying their other bills, and as the new owner of the property, you could be responsible for them.
Consider a short sale. A short sale is where a property is sold for less than what is still owed on it. This usually means a home that has decreased in value during the real estate woes of the past few years. The owner may also have refinanced, taken out a second mortgage, or borrowed against the equity too often. Any which way, the end result is that more is owed on the home than what it is worth, and as a result, the owner is forced to sell it for less than what they owe.
Usually the owner has to be behind on their mortgage payments before the banks will consider a short sale. As a result, you may find some of the same issues (liens against the house, unpaid water bills or property taxes) with a short sale as with a foreclosure or REO property. In addition, short sales often have to go through a lengthy waiting period before the lender approves the offer and gives the owner permission to sell at a lower price. Sometimes both parties may spend a long time waiting, only to find out that the lender won't approve the short sale, and you may have to start over as a result.
However, if you are not in a hurry to buy a home right away, you can save a lot of money buying a short sale, so it may be worth your time!
Get a real estate agent who is a good negotiator. Your buying agent's negotiating skills have a lot to do with the price you end up paying. If a good deal is important to you, make sure you choose your agent carefully, and choose someone who can drive a hard bargain on your behalf!
Lock in low mortgage rates. When you think of getting a good deal on Killeen real estate, you have to also think about the mortgage rates you're getting, since that has an important bearing on how much you end up paying over the long run. Buying right now, when prices are competitive and mortgage rates are low, allows you to save money on both fronts, on the purchase price of the home, as well as on the monthly payments you make.
Buying a home right now is a good idea for anyone who wants to save money and make a good investment. With prices in Killeen real estate so competitive and mortgage rates so low, one can easily become a homeowner for considerably less than you might pay in a year or two!
