If you’re on the hunt for a house in Denver, chances are you’ve run across the term “distressed property”. 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.
While different than traditional sales, these types of houses can actually be a great deal for buyers in areas with low inventory, or for first-time buyers. Here we’ll cover three tips for any buyer interested in a distressed property:
- Work with a pro
Distressed property sales are unique. Buying these types of properties isn’t necessarily harder, but they aren’t the same as traditional sales, which is why it’s crucial to find an agent who specializes in these kinds of transactions so they can help you navigate the waters.
- Never skip the inspection
Any time you purchase a home, you need to have a thorough home inspection. That inspection becomes even more important when you’re considering a distressed property because these types are nearly always “as-is”. An inspection up front can save you thousands of dollars in repairs down the road. At the time of inspection, you haven’t committed to anything – if your inspector finds costly and time-consuming repairs that need to be made, you can simply walk away.
- Show the bank you’re serious
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 will only to consider serious ones. So make sure you’re preapproved for a mortgage before you make an offer on a distressed house.
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!