Bargain Homes for $15,000 & Under: A Real Estate Fantasy
Becomes Reality
March 5, 2007
At the end of February 2007, economists released updated price information for
single family homes in the USA, and Realtors were encouraged by the news that
showed a slight price increase to a median price of around $240,000. Such
reports often require later adjustments, but suffice it to say that a typical
American home now costs between $225,000 and $250,000. But the hot foreclosure
market that began in 2005 and picked up steam in 2006 defies the rules that
apply to “typical” housing prices.
For those who find this too good to be true, here are some examples of actual
foreclosure listings now for sale across the nation.
East Cleveland, Ohio
This historic section of Cleveland was home to America’s first billionaire and
is still known for its streets of estate homes, including the famed
“Millionaire’s Row” where John D. Rockefeller used to live. We found a house
that is more than 3,700 square feet – at 1696 Hower Avenue in East Cleveland –
and it can be yours for less than $10,000.
If you are like many consumers who are tired of paying rent but don’t think you
can afford to buy your own home, maybe this will change your mind. For those
who are paying $825 per month, the price of this East Cleveland home is equal
to one year’s rent.
Orange, Texas
Janis Joplin fans will recognize this small coastal town in Texas as the
birthplace of the famous rock and roller who gave us the song “Mercedes Benz”,
about someone praying for divine intervention to help them afford a luxury car.
But no miracles are necessary to own the home at 1205 Georgia Avenue in Orange,
because if your credit is good you can pay for it with a credit card. The
asking price is $5,500, which is a fraction of what you would expect to pay for
a used singlewide mobile home or to have a one-car garage built behind your
house. But for that amount of cash you will get more than 2,000 square feet of
home – a size that is larger than the typical 3 or 4 bedroom home.
Dayton/Springfield Ohio
Maybe you would prefer to live in a city that the book “Cities Ranked & Rated”
listed in its top 50 metropolitan areas, out of 400 towns and cities throughout
North America. The desirable status was based on an abundance of art and
culture, proximity to other important cities, and a diverse economy.
Dayton is home to the NCR Corporation, a leader in the technology used in ATM
machines. Go to your nearest ATM and check your bank balance, because these
homes are entirely affordable, even on a modest budget. Springfield is a
college town, and with the money you save on housing you will be able to easier
afford to pay your child’s tuition.
Available Dayton properties include one that is a huge 4,486 square feet for
only $13,000, at 260 Alaska St. and a $9,900 bargain – with over 2,000 square
feet of living space – at 136 Buckeye Street. In Springfield you can get a
similar sized house for under $15,000 on Harrison Street (#461) or save even
more by spending $5,750 to acquire ownership of more than 3,000 square feet at
1022 North Belmont Street.
To put that into perspective, the standard 20 percent down payment on a
conventional loan for an average priced home will cost you approximately
$50,000. You can buy all four of the homes listed above for less than $45,000.
(Those Joplin fans can use the extra five grand to buy the Orange, Texas
house.)
A $15,000 Cross Section of the Foreclosure Market in Today’s America
But as we mentioned, those are just random examples culled from several hundred
current or recent listings found in a vast database of homes priced for $15,000
or less. Other deeply discounted opportunities abound.
A listing in Kalamazoo, Michigan (617 Ada Street) for $10,900 is described as
having more than 8,700 square feet. That’s about $1.25 a square foot, so you
could conceivably finance it by cutting back on your iced lattes next year. And
we found five or six more homes for under $10,000 that offer more than 3,000
square feet apiece, an average of about three bucks per square foot.
Meanwhile, the going rate for typical retail homes in the USA is between $125
and $175 per square foot – or around $150 on average. That is 50 times the
price of these bargain homes. And there are literally dozens of homes larger
than 2,000 square feet within the $15,000 maximum price range.
Those who follow these distressed property investment opportunities know that
they can easily buy more than a baker’s dozen for what others are paying for
just one home in the regular retail market. In fact, for $240,000 you can buy
16 houses from our list of $15,000 bargains. No matter how you crunch those
numbers the foreclosure market in the USA this year adds up to a formula for
financial success.