While distressed properties aren’t as abundant as they were after the housing crash in of 2007 – 2008, these types of properties are still relatively easy to come by and, if you know what you’re in for, can be a great value. Especially in areas where affordability concerns run rampant.
Should you consider a distressed property? Read on to discover why this type of property might be your best bet.
It’s important to understand that even though a property is distressed, it’s not simply given away. However, because homeowners don’t want to be foreclosed upon, and banks and lenders who already own foreclosed homes are anxious to get rid of the property, you can find very reasonable prices on these types of homes. There’s also often less competition than you’ll find in traditional home purchases.
Low-Interest Rates- Right now, the average 30-year fixed mortgage rate is around 4.0%. Historically, you’re not going to get a better interest rate, and that low rate will keep the price of your monthly mortgage on that distressed property even lower.
Buy Low, Sell High- While there are no guarantees in the real estate business, distressed properties, like any commodity, have some investment value. Purchasing a distressed property that needs a little work can pay off in the long run as you build equity and home prices continue to increase.
If you’ve been considering purchasing distressed property in Denver, the first thing to do is find a real estate pro who is familiar with the process. At Metrowest, we specialize in these types of sales. Give us a shout today – we’d love to teach you more about the process!