Today, more than 600 properties currently on the market here are listed below $100,000. Agents say prices dipped that low starting this summer, as banks became increasingly eager to unload huge inventories of foreclosed homes.

These el-cheapo listings are not condos, trailers or manufactured houses. They are stand-alone, single-family homes, albeit modest ones, generally about two bedrooms and 800 square feet.

Almost always bank-repossessed, they're concentrated in the foreclosure-stricken areas of Alameda, Contra Costa and Solano counties, such as East Oakland, Richmond, Antioch and Vallejo.

Needless to say, five-figure homes are not always in pristine condition. Instead of a white picket fence, expect chain link, perhaps with a barbed-wire accent. Not only are there no granite countertops, often there also are no stoves, refrigerators, sinks - or even plumbing. They are the ultimate handyman specials.
"It's amazing, in Vallejo for 99 grand you can get a cute little three (bedroom) and two (bathroom) in a decent neighborhood. "Some need work, but many don't."

Homes can be bargains

Despite the repair issues, many agents said the homes can be bargains, representing a chance for first-time home buyers to own for less than the cost of rent, or for investors to acquire properties that will produce positive cash flow without a huge down payment. In some cases, the needed work is largely cosmetic.

"You have to be aware of the area you're buying in; just because it's cheap doesn't necessarily mean it's a good deal," Kerr said. "You're not going to find these properties in Montclair or Rockridge. The neighborhoods range from fairly decent to fairly marginal. A number are in areas where the regular resell houses are in the $250,000 to $350,000 range, although those are in better condition. People can walk in, (make some repairs) and have instant equity."