DFW Real Estate

DFW Real Estate Articles: 2008

Finding A Steal
© by Mike Stevenson

When a good deal comes along... count me in!  Most of the people I know feel this way about saving money... after all, everyone likes a bargain. In the real estate arena, a really fantastic bargain is known as "a steal". That is, instead of just buying a property, the deal is so good that one might say it wasn't purchased... it was stolen!  A few times, buyers have jokingly said to me, "We're looking for a steal." I always tell them, "Well, good luck!"  There are, however, opportunities to purchase homes at prices that are FAR below the market. Some of these properties are what we call "distressed" properties... that is, there are circumstances that cause the property owners to either want or NEED to sell the property quickly...which in turn forces them to consider below market offers.

Here in Texas, back in the 1980's there was a glut of houses on the market because of collapsing oil prices. Real estate values went "south" in a big way and many owners found themselves with homes that were worth less than they had paid for them. Some homeowners simply gave the houses back to the lenders in lieu of foreclosure. The lenders, fearing still lower prices ahead, unloaded these distressed properties well below the market just to save greater losses in the future. Back then, Fannie Mae, (Federal National Mortgage Association), sometimes held public auctions for houses and offered special financing to help get them sold.

Today, the real estate market in the Dallas / Fort Worth area is actually very good... even though it's a little cooler than the wildfire boom of the past couple of years.  In this market, a steal is much harder to come by. Homes that are represented by Realtors® are NOT the place to find steals!  Realtors® protect their homeowners by helping them to correctly price and effectively market their homes. Realtors® also have access to the overwhelming majority of all qualified, active buyers. These benefits allow homeowners to expect fair market prices when using the services of a Realtor®.  The only place today to find a genuine steal, is to look at homes that are being offered for sale by the owner!  Without the expert advice, and the major pool of active buyers to work with, the FSBO homeowner is just one mistake away from having his home "stolen" (price-wise) by a skilled and witty buyer.  No... not every FSBO can be worked in this manner... but this is by far the greatest source of real estate bargain hunting. The For-Sale-By-Owner property is the most fertile ground currently available from which to harvest that luscious, golden fruit -- a steal.

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