I have been buying and selling real estate for over 20 years and although I do not believe there is ever a bad time to buy real estate, the current market is offering some opportunities that have not been seen since the 1970's and 1980's. At that time the real estate market was flooded with homes for sale, with some cities across the United States seeing neighborhoods of empty and boarded up homes and apartment complex's. Banks were selling REO's (real estate owned) for pennies on the dollar.

We will probably never see quite the same situation due to the government safeties to protect the lenders and banks that have been put in place. What will not change is all the people trying to get out from under their home due to the Real Estate Market having such a large inventory of homes for sale. In this article those are the people that you are looking for. Now this will work in any market as there is always people who are needing to sell their home or property and for whatever reason have not been able to.

With this approach we are looking for a for sale by owner (fsbo) that has been trying to sell his or her house and been unsuccessful. This property will not be currently listed with a realtor or real estate company, buy may have been previously.

Before going on any further I want to point out a couple things that you need to research before talking to or entering into any kind of conversation or negotiations about purchasing the home or property from the seller. First you need to have a good idea what the properties current market value is for what your going to do with it. You will also need to have a general idea of what kind of repairs may be needed (roof, paint, foundation, flooring, plumbing, electrical) and what they may cost. This is just from a quick initial glance, not a complete inspection. This will also help you with the negotiations if you decide to make an offer after having this information.

Once we have an idea of what houses in that neighborhood sell for and you find a house to buy you are interested in, your going to contact the owner. Your going to ask them what they are asking for the home, if they have an existing loan on the property and if so what the balance is. Your going to ask if they are offering any terms or assistance for "bank financing." Now we are not looking to get any bank financing, but these type of questions will give you an idea of how negotiable the owner may be and what they may be willing to do to get the house sold. If the seller sounds reasonable or desperate and the information gathered over the phone or in person is something you may be able to work with then its time to set up a meeting to walk through the property.

When you meet with the seller, have them give you a tour of the home. Be sure and note any repairs needed and ask them questions about the condition of the property in general and particular issues or mechanical systems that look suspect. After taking the tour of the home and taking note of any issues, both good and bad, it is time to sit down with the seller. You want to find out why they are selling and what they want, and what they actually need. You now have the information to start negotiations and possibly make an offer if your still interested in buying the home.