Buying a distressed property can be an appealing option for homebuyers with a limited budget. While they’re not just given away, distressed properties – short sales, foreclosure homes, bank owned homes, etc. – can often be a great value. But it’s important to know what to expect if you go this route. Check out the five tips below to make sure your distressed property experience is a positive one.
- Get pre-approved for a mortgage
One of the things to keep in mind when trying to buy a distressed property is that the bankers that need to approve your offer want to consider only very serious offers. So make sure you’re preapproved for a mortgage before you make an offer on a distressed house. - Find an agent experienced with distressed sales
Distressed property sales have a lot of unique challenges. So when picking a real estate agent to represent you, find one who has experience handling those issues. - Don’t skip the inspection! Home inspections are always crucial, whether you’re buying a distressed property or not, but that inspection becomes even more important when you’re considering a short sale or a foreclosure. These types of sales are always “as-is”, and unlike typical home-sale situations, the seller of a distressed property likely won’t take responsibility for damages to the home at the time of the transaction.
- Be patient
Unlike a normal sale where you deal primarily with the homeowner, distressed sales involve dealing directly with the lender, who has to approve the final sales agreement. This often makes the buying process a bit longer than with traditional sales. - Be ready to make an offer
Denver has a competitive housing market, so just if you were considering a traditional home sale, you’ll want to be ready to make a serious offer quickly when purchasing a distressed property. Don’t assume you’ll be able to make a low-ball offer for a distressed property. These homes are typically listed at fair market value, so you’ll want your offer to reflect that and be taken seriously.
Ready to start checking out distressed properties in the Denver area? Contact Metrowest today. We specialize in these types of sales and would love to help you start the process.