One of the major providers of bargains in the real estate world is the community of people who deal in real estate day in and day out.

This source seems all too obvious. Agents and brokers see lots of houses and talk to lots of sellers every day. Unfortunately for us, the vast majority of listed homes sell for close to asking price, disqualifying them from our bargain category.

While it would be nice if every home sold quickly at full list price, and while we all would hope for a quick loan approval and a hassle-free closing, there are times when it just doesn’t happen that way.

The truth is that the path between signing the sales agreement and picking up a check at the settlement table is littered with potholes and detours. Along the side of the road are the rusted remains of dozens of contracts that died before the parties could breathe life back into the deal.

And therein lies the opportunity to find a house at a great price. The bargain can often be had if you are willing to act quickly and pick up the pieces others have left behind.

Several years ago, I got a call from an agent who began his conversation with the question: John, do you still buy really ugly houses? I replied that yes, sometimes I did. He went on to ask, if the deal was good enough, could I close within a week for all cash? I answered yes, if the deal was good enough.

He then detailed a story of a contract gone bad. He was the listing agent, and the house was in poor condition, but in a good location. The seller had inherited the house, and was unable or unwilling to fix it up for resale.

After many months on the market, the seller accepted a lowball offer from a potential buyer, but when the inspection report came back, the buyer had asked for a variety of repairs, mostly cometic in nature, but quite expensive.

After negotiating a substantial reduction in an already low price, the buyer applied for his loan. Because the buyer was applying through FHA, the appraiser was particularly picky about additional required repairs, and the lender then declined to approve the loan based on the condition of the house.

In the meantime, the seller had prematurely made commitments for the use of the sale proceeds. When he found that his sale had fallen apart, he tried to make other arrangements, but now needed to complete the sale, regardless of the price. He instructed his agent, my friend, to get the house sold in the next week, no matter what it took.

I examined the house and concluded that it needed only minor repairs and a fresh coat of paint and new carpet. Most homes in the area were selling for around $100,000. I knew that the prior contract for $78,500 had fallen through, and that the seller was highly motivated to sell within seven days.

I offered $66,000 cash on the property in as-is condition, to close in seven days with no contingencies except title examination. The seller accepted.

For real estate bargain hunters, here are the keys that made this deal work:

* I was prepared to act very quickly. When a seller becomes highly motivated, the opportunity typically evaporates in a matter of hours. I had a feeling that my friend had already called several other potential purchasers, and I wanted to be the first to make an offer.

* I was already familiar with the area. Because I watch the market on a regular basis in that area, I was able to satisfy myself that the home was probably worth right around $100,000 once it was cleaned up and painted. That confidence comes from knowing the sales history in that neighborhood.

* I had the resources to close very quickly. Months earlier, I had opened a home equity line of credit on my residence, which gave me the ability to write a check for the purchase price and obtain the funds immediately if needed.

* I protected my friend’s real estate commission. The agent who called me had worked hard to make the previous sales contract a success, but when it failed, he ran the very real risk of making nothing for all his efforts. I had told him previously that if he ever brought me a deal, I would not seek to participate in the commission, even though I am a broker.

This professional courtesy tends to make the agent who called me feel appreciated rather than violated, and encourages him to call me again when the next deal falls apart.

* Finally, I had taken this particular agent to lunch several months earlier, and told him that I was in the market for a bargain property in this particular neighborhood, and that I could act quickly if one ever appeared. I also told him I would protect his commission.

In addition, I promised him that if he brought me a deal and I bought it, he would get the listing if I decided to resell the same house in a short period of time.

Patience, preparation and persistence are the keys to this source of bargain real estate.