I tend to use the term inexpensive instead of “cheap” but the people who use Google to search for real estate are often using the word “cheap” in their search.
Honestly this kind of reminds we when I had to explain to my 16 year old son that there is no such thing as a cheap car. He had the option of buying one that wasn’t very expensive but he would have ended up repairing in monthly or he could buy a newer car for a lot more money. Either way cars cost money.
Home buyers are always looking for bargains as they should but when they are attracted to the 30K home they are surprised to find that getting financing to buy the home is almost impossible and the home may need 50 to 100 thousands dollars of work before it can be inhabited and if that isn’t bad enough most of the work has to be done by a licensed contractor and can not be done by a learn as you go home owner on the weekend.
There are currently homes on the market in St. Paul listed for less than 15K. Often the words “tear down” are included in the Realtors description.
Homebuyers sometimes get frustrated when they contact the listing agent who has a 30K property on the market. Chances are the person who will buy the property will be someone with cash who can rehab the home or who can pay someone to rehab it. After it is all fixed up it may become a rental property or may be resold to some first time home buyer and sometimes there will be down payment assistance available.
These bargain basement priced homes are in most cases unfit for human habitation and they will be purchased by investors for cash. generally the properties do not qualify for a traditional mortgage.
Homebuyers should also understand that just because a home is owned by a bank does not mean that it is for sale. If a bank owned home in St. Paul becomes a problem property please contact the city.
One of the very best ways to find and buy a bargain priced home that is eligible for financing or maybe even for home buyer assistance programs is to contact a Realtor® and get some help. This is what some of us do. We can help with any home listed with any brokerage.