Most buyers hire a realtor to help them buy a house. Realtors can help buyers narrow down their search by compiling a list of features, location and price range. Realtors can assist buyers with price negotiations, submit offers and counter-offers, and prepare documents for transfer of real estate.

Although realtors can be instrumental in locating the perfect house, there are other options available for buying a home. Today, many sellers are engaging in lease-to-own options which allow buyers to lease the home while contributing a portion of rent monies toward the purchase. This type of real estate transaction is perfect for borrowers who have poor credit or unable to provide a sufficient down payment to obtain a mortgage loan.

Lease-to-own contracts generally last between two and five years. The contract outlines the terms of the sale and includes a predetermined purchase price. Most sellers require buyers to provide a down payment of 3- to 10-percent. Once the contract expires, buyers must obtain a mortgage loan for the remaining balance.

When entering into rent-to-own contracts, buyers should enlist the help of a real estate attorney to ensure documents are legally-binding and protect both parties in the event of default. Buyers should strive to remove negative marks from their credit and pay rent monies on time and in full each month. Doing so establishes a positive record of payment which can assist the buyer when the time arrives to obtain a mortgage loan.

Another option to buy a house is through the use of seller carry back mortgages. Using this type of financing, the seller acts as the mortgage lender. The majority of sellers who engage in seller carry back financing generally finance only a portion of the purchase price. However, some sellers will carry the full amount for a specified period of time.

Seller carry back contracts generally last between three and five years. Sellers typically require a down payment of 5- to 10-percent of the purchase price. If the seller carries back a portion of the sale price, the buyer must obtain traditional financing for the balance. In essence, the buyer has a first and second mortgage.

Seller carry back financing is a good choice for buyers who do not possess sufficient credit rating to obtain funding for the entire purchase price. During the contract period, buyers are given time to establish credit or remove negative marks which could prevent them from obtaining a mortgage loan or refinancing the note once the seller carry back contract expires.

Probate real estate can be an excellent option for first-time home buyers, individuals who want a second home, or real estate investors. Probate real estate refers to property bequeathed to heirs through a decedent’s Last Will and Testament.

The probate process can last for months or even years. During probate the estate is responsible for maintaining the house. If the decedent held a mortgage on the property, the estate must continue making payments and remain current on homeowners’ insurance and property taxes. If the estate does not have sufficient funds, the estate administrator can sell the house to repay the loan or eliminate associated expenses.

Distressed real estate is becoming a popular choice for people who want to buy a house. Distressed properties include foreclosure and bank owned homes, as well as short sale real estate. Bank owned properties are foreclosure houses that did not sell through public auction. These properties can generally be purchased for 10- to 30-percent below market value.

These are a few options to buy a house at reduced prices. Take time to become educated about the various real estate and financing options. Doing so could potentially save you thousands of dollars and provide instant equity in your new home.