Buying a distressed property is appealing for all kinds of reasons. First, it may be a great bargain. Secondly, it gives people the opportunity to afford homes in areas they may otherwise not be able to. There are advantages and disadvantages to buying a distressed home, but it may not be as challenging or difficult as you may have seen or heard. Check out the following tips on the do’s and don’ts of buying a distressed property, and see if this may be the right path for you!
- DO hire a pro.
Distressed property sales aren’t the same as traditional sales. That doesn’t mean they’re bad, it just means you want to find a real estate agent who knows how these types of transactions work. Your agent will be able to help you better navigate the process. - DON’T skip the inspection.
Once you find a place you like, it’s crucial to have a professional inspection so you can get a better idea of the repairs and renovations to come. Maybe all the fixes a house needs are cosmetic. Maybe they’re more involved and more expensive. Either way, you need to know what you’re in for before putting in an offer. - DO give yourself a buffer in your budget.-Whether they are minor or extensive, distressed homes almost always need some sort of repairs. You need to keep that in mind as you determine how much house you can afford. Some of your payment will go to the asking price, but you’ll need to consider how much to budget for repairs. Just another reason a thorough inspection is necessary!
- DON’T Delay.
Competition can be fierce with distressed properties, just as it is with traditional home sales. If you find a place you like, great! Get it inspected, determine if it’s in your budget, and make an offer!
Ready to start checking out distressed property options in the Mile High City? Give Metrowest a shout today – we specialize in these types of sales and would love to help you start the process!