© Roy McMahon/Corbis
Here are tips from those who made good deals in this slumping housing market:
1. Do your homework before jumping in. Buy real estate in an area that is stable, with low crime and good schools.
2. Look for properties with good amenities such as a swimming pool and garage.
3. The top places to buy, according to some investors, are parts of California, Texas and some counties in Florida. The worst is Detroit, which had the highest foreclosure rate in the United States.
4. Focus on enhancing the kitchen, bathrooms and master bedroom.
5. Give it curb appeal.
6. Stay away from Jacuzzis. It's a good dating tool, but not a good idea if you have four kids, says real-estate investor Stephen Crawford of Richmond, Va.
7. Stay away from frame homes to avoid the risk of termite damage.
8. If you aren't good at fixing houses, find someone who is.
Click here to read "Bargains: The sunny side of the housing slump."
