In areas of tremendous growth and low housing inventory – like Denver – many potential home buyers are considering purchasing a distressed property as a way to break into home ownership. While the classification of “distressed housing” may conjure up images of less-than-desirable digs, these properties can often be a great deal – and in better shape than you might think. Whether or not your experience purchasing a distressed property is a positive one has a lot to do with understanding the process. If you know what to expect, the experience will undoubtedly be much more pleasant than if you go in blind.
Pros of purchasing a distressed property:
The most obvious reason to purchase a distressed property is the reduced price tag. While not all distressed properties are in dire need of renovation, it’s likely the previous owner didn’t have the time or money for extensive repairs, which account for the lower price tag you see. If you’re planning on making the distressed property your residence, you may find some favorable financing options to help get your foot in the door. And, if after a few years, you decide to move on to something else, you can still utilize the property as a rental unit for added income!
Cons of purchasing a distressed property:
Distressed properties vary. One may look great, but conceal sub-surface problems like a shaky foundation or poor electrical work throughout. Others may look horrible from the outside, but upon inspection, are structurally sound and only require some cosmetic upgrades to make it livable (or marketable, if you’re planning on flipping it.) It’s important to truly understand your budget, how much you can spend on repairs, and never ever skip the inspection!
The bottom line is: purchasing a distressed property doesn’t need to be scary or stressful – especially if you have the right team on your side. Metrowest specializes in distressed sales – if you considering this route give us a call today – we’d be happy to help you start the process!