How to Find and Buy Homes at Rock-Bottom Prices: Foreclosures, Estate Sales & Don't-Wanters
- Wayne Turner
- 7 days ago
- 7 min read
How to Find and Buy Homes at Rock-Bottom Prices
Most buyers hunting for a deal only look at foreclosures. That's a mistake. The properties with the most negotiating room often aren't labeled "foreclosure" at all — they're estate sales, fixer-uppers, and what real estate agents call "don't wanters." Below is a full breakdown of how to find these properties, how to get your financing in order before you make an offer, and the negotiation and inspection strategies that separate buyers who overpay from buyers who get a genuine deal.
Buying Foreclosures: Why Days on Market Matters More Than the Listing Price
A foreclosure just hitting the market isn't necessarily a deal. Banks list these properties and give them time to "season" — to see if a buyer will pay close to asking price. The real opportunity shows up after the home has sat for 30, 60, 90, or 120+ days. The longer a bank-owned property sits, the more willing the bank becomes to negotiate.
A few things to know before making an offer on a bank-owned home:
Once a foreclosure has been on the market for several months, don't be afraid to offer 20–30% below the list price. Banks are typically slow to respond — offers are submitted through online portals and can take three to four days for a reply, and banks usually reject an offer outright rather than sending a counteroffer. That means you may need to submit more than one offer before landing a deal. Patience is part of the strategy.
To find foreclosures before they're publicly listed — including bank-owned homes, fixer-uppers, short sales, and bankruptcy sales in your local market — Wayne Turner maintains FindMyForeclosure.com, a subscription-based, cancel-anytime service.
Estate Sales: An Overlooked Source of Deals
Estate sales are homes where the owner has passed away and the family is liquidating the property. These listings aren't tagged as a special category the way foreclosures are (foreclosure status is a required field for real estate brokerages), so they can be harder to spot without help.
Two things make estate sales worth targeting: The sellers — usually surviving family members — typically have less emotional attachment to the home, since it was never their own personal residence. And these homes often need updating or repair work, which creates room to negotiate on price.
Fixer-Uppers Aren't Always Foreclosures (and Vice Versa)
It's a common assumption that fixer-uppers and foreclosures are the same thing. They're not. You can find a fixer-upper that has nothing to do with a bank sale, and plenty of foreclosures are actually move-in ready. Because "fixer-upper" isn't a searchable listing field, spotting one takes reading the fine print and studying the listing photos closely — or working with a local agent who already knows which properties fit the bill.
Get Your Financing Ready Before You Search
Before you start touring homes or writing offers, get your cash position sorted out. Buying real estate isn't like buying a car — there's no salesperson deciding on the spot whether you qualify. Instead, you go to a mortgage lender or credit union, who evaluates your income, assets, cash reserves, and credit, then issues a pre-approval letter.
That pre-approval letter functions like cash. At the closing table, the lender is the one handing over the funds to the seller — so from the seller's perspective, an approved buyer is effectively a cash buyer. If you're buying with actual cash, don't be shy about proving it. Sellers (and their agents) want to see proof of funds before taking an offer seriously.
"Don't Wanters": The Deal Category Most Buyers Miss
"Don't wanters" are homes that have sat on the market for six months or longer — sometimes referred to as "birthday homes" when they've been listed for a full year or more. These sellers tend to be far more motivated than someone who just listed last week.
Here's the catch: a home can look like it's only been listed for a week or a month when it's actually been relisted with a new agent after sitting stale for months. Always ask your agent to pull the full listing history, not just the current listing date, so you know the real timeline you're negotiating against.
Pair a stale listing with a fast, clean close — especially on a vacant property — and you're in a strong negotiating position. Come in with your pre-approval letter (or proof of cash) and offer to close in two weeks.
Never Skip the Inspection — Even on an "As Is" Sale
A fast close doesn't mean skipping due diligence. Even on homes marketed "as is," you still have the right to have the property inspected before closing. Typical inspection periods run 7–14 days; negotiate for the full 14 days if you can, since some issues require specialized inspections beyond a general home inspection:
A general home inspector will not evaluate a well or septic system — those need separate inspections. If there's any chance the home has experienced fire, flood, or a fallen tree, order a mold inspection specifically; just 24 hours without power in warm, humid conditions is enough for toxic mold to set in. Mold inspections typically run $600–$700 and can pinpoint exactly where remediation is needed.
Other inspections worth considering depending on the property: septic system, well (water quality and pump function), termite, HVAC, and — particularly on winterized bank-owned homes — a plumbing scope inspection to check for cracks, blockages, or tree-root damage in the drain lines.
If an inspection turns up issues, you can negotiate for the seller to either credit you the repair cost or fix it before closing. Note that with government-backed loans like FHA, sellers can cover closing costs and prepaids but cannot hand buyers cash directly outside of those channels.
Check the Property Lines Before You Close
Boundary disputes are more common than most buyers expect — a neighbor's shed or fence encroaching on your property line, or vice versa. If you suspect an issue, check with your county clerk of court (register of deeds) for a recorded survey, or ask a title company to pull one. With a copy of the plat, a metal detector can locate the buried property pins at each corner so you can string a boundary line yourself.
A new survey typically costs $700 to several thousand dollars, depending on lot size and terrain. If the seller won't cover it, you can pay for it yourself or ask the seller to split the cost — and if the deal falls through, you're only out half.
The Real Math on "Overpaying" by a Few Thousand Dollars
Buyers often get stuck on a price gap that feels bigger than it actually is. Ten thousand dollars sounds like a lot to concede — but spread across a 30-year mortgage at 6%, that's roughly $60 more per month. As a rule of thumb, every $100,000 borrowed adds about $600 a month in principal and interest alone (not including taxes and insurance). If you put down less than 20%, expect to pay mortgage insurance premium (MIP) on top of that.
Also keep in mind: sellers can contribute up to 3.5% of your loan amount toward closing costs. On a $300,000 purchase, that can meaningfully reduce the cash you need to bring to closing — though it's worth remembering that amount is still being financed as part of your loan.
Consider a Home Warranty
A home warranty (Wayne uses Old Republic, without any paid endorsement) typically costs $600–$1,200 depending on home size, with a $50–$100 service call fee. If a major system like a water heater or HVAC compressor fails after closing, a warranty can save you a costly out-of-pocket repair.
Frequently Asked Questions
How much below asking price should I offer on a foreclosure? Once a foreclosure has been on the market for several months, offering 20–30% below the list price is a reasonable starting point. Freshly listed foreclosures usually won't have that much room yet.
What is a "don't wanter" in real estate? A "don't wanter" is a home that has been on the market for six months or longer without selling, signaling a highly motivated seller. Homes listed for a year or more are sometimes called "birthday homes."
Do I still get a home inspection if I buy a house "as is"? Yes. Buying "as is" means the seller won't make repairs, but you still retain the right to inspect the property before closing and decide whether to move forward.
When should I get a mold inspection? Order one anytime a property may have experienced fire, flood, or storm damage — especially a fallen tree — since mold can develop within 24 hours in warm, humid conditions without power.
Can a seller pay my closing costs? Yes, sellers can contribute up to 3.5% of your loan amount toward closing costs, which can significantly lower the cash you need at closing.
Where can I find foreclosures before they're publicly listed? FindMyForeclosure.com provides local, subscription-based access to foreclosures, bank-owned homes, short sales, and bankruptcy sales in your area.
Ready to Find Your Deal?
Estate sales and fixer-uppers rarely show up in a standard search filter — finding them takes a local agent who knows how to read between the lines of a listing. If you'd like to be connected with a vetted local agent in your market, visit WayneTurner.com, click "Buying," and submit your information.
The contents of this video are for educational and entertainment purposes. For financial, accounting, tax, or legal advice, consult a financial advisor, accountant, and/or attorney. This information on this channel and the videos here are in no way intended to solicit homes that are currently listed for sale. Purchasing products through Wayne's affiliate links allows him to continue to share and teach others. The goal is for everyone to become knowledgeable so they can make the best-informed decisions when it comes to real estate. Wayne may earn a commission from purchases made through links on this channel and a referral fee if services are used that Wayne or someone on his team refers to you. You are not nor never required to purchase anything or use the services of Wayne Turner or any of his affiliates.
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