Denver’s housing market is hot right now, to say the least. So how does one go about purchasing a home where prices are increasing and inventory isn’t keeping up the pace?
Distressed properties, like foreclosures, can be an ideal solution for people who want to break into homeownership, but may not be able to afford high prices in a booming city. If this describes your situation, read on to find out if buying a foreclosure may be the right option for you!
The first thing to understand is there are many types of properties that are generally known as “foreclosures.” A “pre-foreclosure” is a home that’s in danger of falling into foreclosure, but is still owned by the homeowner. A “foreclosure” is a property that will be sold or repossessed by a creditor or a lender to recover the amount owed on it.
Why consider buying this type of property?
- You may be able to purchase a home at a lower-than-market-value price. If the home is in pre-foreclosure, the homeowner is looking to sell the home to avoid going into foreclosure. Typically, these homeowners are in a hurry to sell, which puts the buyer at an advantage.
- Banks are also often willing to offer foreclosures at a discount, since the longer they hold these properties, the more it costs them in terms of taxes, maintenance, etc.
- Foreclosures can be found at all sorts of price points (starter homes, luxury homes, etc.) and sometimes are only in need of minor repair or upgrades.
- With some sweat equity, repairs and upgrades, a homeowner can turn a foreclosure into a home and see some appreciation in the property’s value.
Are you considering purchasing a foreclosure or other distressed property? Contact the pros at Metrowest– our experienced agents specialize in this type of sale and would love to help you start the process!