There is no question – now is the time to buy a house. Foreclosures are at an all-time high and their presence in the many markets creates a feeding frenzy every time a new one comes up for sale. These homes are listed in every section of the market and are often in very good shape structurally; some only need light cosmetics (think paint and carpet). Like anything in life, it pays to be prepared. Here are some tips to make your experience as profitable as possible.

1. Be Prepared – Banks want to sell their foreclosures as fast as they can. In order to do this, they make their homes the cheapest on the street – and their strategy works. Most bank-owned properties sell in the first 30 days of being on the market. Make sure you are ready with a mortgage pre-approval or bank statement showing available funds when the house you like comes on the market.

2. The Best Things in Life Are Worth Working For – Sure, some foreclosures are in excellent shape, but if you want a deal of deals, you are going to have to put in some manual labor. Figure out what things cost to replace from reputable, professional sources and look for homes with “good bones.” Finding good structural components should be your primary concern. Countertops and carpeting can always be changed later.

3. Inspect, Inspect, Inspect – Banks will not generally make any representations (or guarantees) about the property you are about to purchase; use some of the money you are saving when buying a foreclosure and get the best professional inspectors you can. A little investment up front can save you a LOT in repairs after purchase.

4. For The Best Houses in Foreclosure, The Asking Price Is Often The Selling Price Or Close to It- Banks do not want to waste time negotiating and they often price their houses accordingly. It is increasingly common to see multiple full-price offers on the best foreclosures the first week they come on the market. Know your market and offer accordingly. If full price is $30,000 below the comps, you are still buying for $30,000 less than you would otherwise be able.

5. Most Importantly, Use a Realtor. The right agent can let you know about new foreclosure properties that fit your needs as soon as they come on the market, not to mention help you navigate the mountains of paperwork and negotiate a better price with the bank. The agent will also have the working knowledge to help you avoid buying a lemon. And, best yet, the realtor is free to you because the bank pays the commission.

It is really tough to be a seller right now – you cannot compete with the banks. If, however, you are thinking about buying a property, then there has not been a time like this to buy in decades. With home prices and interest rates at all time lows (but interest rates are rising!), homeownership is easier than it ever will be again for qualified buyers. And, for first time buyers, there is a once in a lifetime opportunity to get the government pay $8,000 towards your new home.