What you Should and Shouldn’t Do When Buying a Distressed Property

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!

  1. 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.
  2. 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.
  3. 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!
  1. 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!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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