With a drop in home values and a large inventory of avaialable homes for sale in Frederick MD, it is a great time to buy a house. Factor in still low interest rates, and you have the perfect recipe for a buyer's market. Good deals are all around, it's as if the Frederick Maryland real estate market is having a big sale---"Prices slashed, everything must go!!". Foreclosure has been a big buzz word in real estate over the last few years. Everyone likes an unbeatable deal, and sometimes a foreclosure can be an unbeatable deal. However, the key word is sometimes. The point of this post is to point out that there are plenty of deals in the current Frederick Marylandreal estate market, other houses to consider besides a foreclosure. I also want to dispel many myths about buying foreclosures, and offer tips for buying a foreclosure.

First things first. Many people have seen the late night infomercials talking about getting rich in real estate. "Buy foreclosures, retire tomorrow!!", or "Buy a house for $300!!", etc. This leads many people to mistakingly believe that they can find a house for little money. If you are seriously wanting to buy a house in Frederick MD, get this pipe dream out of your head, ain't gonna happen!

However, if you are a serious home buyer in the Frederick Marylandreal estate market, you can find a home that is priced below market.

The first issue with foreclosures in Frederick MD is usually condition. Chances are, if the former owners couldn't afford their mortgage, they probably couldn't afford the upkeep and maintenence of their homes. Foreclosures, especially older houses, tend to be in some form of disrepair and decay. This can be a good thing--the worse condition a home is in, the cheaper you can get it for! However, here is what derails many would be foreclosure buyers. Many home buyers in the Frederick MD real estate market don't want to buy a house that requires work. Some are willing to do some work, and some are even able to do it themselves. The key is the money it will take to rehab a house. Where is that money coming from? Not everyone has a spare few thousand dollars lying around, and chances are if you do, you will need that money for down payment and closing costs.

Don't think the bank will be willing to give you "extra" money, they have done away with 100%/no money down loans-- lending more money than a house is worth is what got them in this mess to begin with! FHA has a rehab loan, but there are restrictions and guidelines that can be confusing, and this may not be that good of an option. The house has to meet certain FHA guidelines, and many foreclosures do not. A Mortgage Consultant can better explain the details, and is a good place to start the homebuying process to get pre approval.

If you are a first time buyer in the Frederick Maryland real estate market, a foreclosure that needs a lot of work is not a smart way to go. You can very easily get yourself in over your head.

The ideal foreclosure would be a house that is in very good condition, and needs no or very little work--maybe some fresh paint and new carpet. These do exist in the Frederick Maryland real estate market, however, there is one problem: they are the exception. These tend not too have deep discounts, and are sold very quickly after coming onto the market. Often, you will not know about them until after they have sold. You can avoid this proble by setting up a search at www.homes2price.com. Updated daily and will send an e-mail to notify you of new listings and price changes.

Price is another misconception about foreclosures. We all know that banks do not want to own houses and want them sold as quickly as possible. However, that does not mean that they will give them away. While they want to recoup the money they are out, that doesn't mean they won't try and make a profit (they are in the money business, after all). Buyers mistakingly believe that if a bank is owed $150,000 on a $200,000 home, that they will gladly take $150,000 for it. If the fair market value on that home is $200,000, then the bank is going to try and get $200,000. Certainly, if the home is in bad shape and needs lots of work, the bank will discount it to reflect that.  Banks also know that in the Frederick Maryland real estate market they can offer this $200,000 house at a slight discount and they will get a buyer. In other words, they do not have to slash the price drastically to sell. You can still get a good deal on this house, a below market price (perhaps 10%-15% off), but you aren't going to get it for 50% or more off.

There are plenty of houses for sale on the Frederick Maryland real estate market that have been disounted already as a result of the declining prices we have seen over the last year or two. With a huge inventory of homes for sale, buyers can usually offer less than list and have that offer accepted. In essence, you are getting a discount on an already discounted price!

One option for homebuyers in the Frederick Marylad real estate market is Short Sales. Many buyers do not seek short sales out simply because they do not know what a short sale is, or the potential deal that they offer. First, a short sale is simply a house that is heading to foreclosure. The bank agrees to work with the home owner to sell the house at a price less than what is owed.

For instance, the $200,000 house we mentioned above. Let's say that owner can't pay his mortgage and is heading for foreclosure. Let's say he bought the house a year and a half ago, paid $215,000 for it. But in today's Charleston SC real estate market it is only worth $200,000, and the owner still owes $205,000. The bank may agree to allow him to sell it for $195,000. They will be short on what they are owed, but the bank will agree to this because they do not have to spend more money by going through the foreclosure process. This is just a simple example to illustrate a short sale, but here is the bottom line: they can be as good, even better deals than foreclosures!

In the Frederick Maryland real estate market, we are seeing quite a few short sales. And many of them have one thing in common: they are newer homes, most built in the last 3-4 years! Unfortunately for many home owners that bought brand new construction homes in the Frederick Maryland real estate market in recent years, they cannot sell them for what they purchased them for. They simply owe more on the mortgage than what the property is currently worth, they are "upside down". This is a great opportunity for savvy homebuyers in today's Frederick Maryland real estate market---to buy a practically brand new home for a discounted price! And since not all buyers know what a short sale is, that means a little less competition for top quality homes in great condition!

One important note: whether you buy a regular house, short sale or foreclosure in Frederick Maryland, GET A HOME INSPECTION DONE!!! And make sure the sale of the house is contingent on that inspection!

There are many real estate websites that will draw you in with the promise of foreclosures. Many of the foreclosure sites have limited information, and many have outdated info. You can search the Frederick Maryland MLS at www.homes2price.com and find the short sales and foreclosures.

One other note about searching the Frederick MD MLS--with so many homes for sale in the Frederick Maryland real estate market, literally thousands, Getting in touch and working with a Frederick Maryland real estate agent can make your search, and the entire homebuying process, much easier. Instead of hunting down the Charleston SC MLS, the Charleston SC MLS can come to you! I can set it up so that not only will you receive listings from the Frederick Maryland MLS to your mailbox of houses that match your criteria, you can also receive listings of short sales and foreclosures in Frederick MD! Plus, you will receive listings AS SOON AS they come onto the Frederick Maryland mls, so you will know about them BEFORE other buyers!

A real estate agent can answer whatever questions you have, explain how the homebuying process works, ease any worries or fears you may have about buying a house in Frederick MD, and help you determine what type of house might best suit you--buying a short sale, regular listing or foreclosure in Charleston SC. I can also get you in contact with proven mortgage consultants to get you pre approved so you start the process right!

Best of all, for home buyers in the Frederick Maryland real estate market, my services of a real estate are FREE! to you for any home listed on the MLS. I even waive the normal processing fee at closing. You get the guidance and help of a professional, working for you, and it doesn't cost you a cent!

For more information about buying a house--regular, short sale or foreclosure, in Frederick Maryland, and to search the Frederick Maryland MLS, and to start the homebuying process right, check out your online resource for Frederick Maryland Real Estate