If you’re on the hunt for a house in Denver, you might have run across the term “distressed property” in your searches. A distressed property is any property whose owner is in default on the mortgage, so distressed properties can actually be short sales, bank-owned homes, and foreclosures.
Buying a distressed property isn’t the same as a traditional residential sale, but these types of houses can, in fact, be a great deal for buyers in areas with low inventory, or even first time buyers. Here we’ll cover three things you’ve got to do before checking out distressed homes:
- Find yourself a pro to work with
Distressed property sales aren’t’ necessarily harder than traditional home sales, but they unique, which is why it’s crucial to find an agent who specializes in these types of purchases so they can prepare you for what lies ahead. - Never skip the inspection
This actually rings true for any type of home you’re going for. Distressed properties are typically sold “as-is” so it’s crucial to get a thorough home inspection. At this point, you haven’t committed to anything, so if any inspector finds extreme issues that are out of your budget you can still walk away. - Get your finances in order before you even start looking
One of the things to keep in mind when trying to buy a distressed property is that the bankers who need to approve your offer only want to consider very serious offers. The best way to show you’re serious about buying is to get preapproved for a mortgage before you make an offer on a distressed house or any house for that matter.
Think you’re ready to start checking out distressed housing in the Denver metro area? Contact Metrowest today – we specialize in distressed property sales and would love to help you start the process!