If you want to save thousands of dollars when you purchase your next home, you should consider looking for a foreclosure. Foreclosed homes usually sell for twenty percent less then the market value of other properties in the area. Often they need some TLC but with a little elbow work, they can be wonderful buys.

When you sit down and do the math, you can often pay about the same amount in house payments that you are spending on rent. Because interest rates are so low and the prices of houses are down, it is a great time to buy a house. Lenders are still willing to loan money and even people who have had bankruptcies can apply and often are accepted.

Foreclosures make some of the best buys and they can be found right on the MLS. If your realtor asks to show you homes that have gone back to bank and now are on the market as foreclosures, don’t shy away from them because they are your opportunity to get the lowest house in the neighborhood. They are easy to make an offer on and the process is the same as if you were buying a home that is owned by a private party. Often the bank will take a couple of extra days to answer back because they are a business and have office hours.

When making your offer, you can consider the real market value of the home and offer a price that you feel fair. It can be several thousand dollars less then the asking price. The bank may make you a counter offer or say no. The ball is back in your court and you will have to decide what to do. These homes make excellent buys and if you have the opportunity to make an offer on one, you will feel confident that you are getting a very good value.