Aside from increasing your housing options, considering distressed properties additional benefits as well. In areas where affordability is low and choices are limited, buyers – first timers or not – may be surprised at the advantages of considering distressed homes.
Distressed homes that are for sale not because the owner wants to sell, but because of pre-foreclosure, foreclosure, or repossession. Foreclosed homes are usually offered up through an auction in which the highest bidder gets the property. If the auction is not successful, then the lending party (usually a bank) will have to assume ownership of the property. This is known as a bank or real estate-owned property. So what are the advantages of buying these types of properties?
1. Lower/More Affordable Prices
Due to the nature of distressed properties, it is possible to get a house below market value. This is because homeowners (or banks) are usually in a position where they really want to sell and sell fast.
2. Financial Gain
Distressed properties create opportunities for buyers who want to make a profit down the road. Buying a home at a lower price and then putting in the work to improve it will certainly increase your return on investment when it comes time to resell.
3. Fewer Delays in Approval
When building new properties, you are often faced with construction delays. Some examples: when the approval on your construction plans does not go in your favor, when your developer was in charge of getting the permit but didn’t do it in time, or when your contractor made some error that resulted in the poorly built property. And the worst part is that they can all occur with the same property. While closing on a distressed property may take a little longer than a traditional sale, you won’t face constant setbacks you can sometimes encounter with new construction.
If you’re considering a distressed property, contact Metrowest. We specialize in these types of sales and would be happy to teach you more about the process and show you what Denver has to offer!