Are you planning to buy a new property? How about a distressed home?
Buying a distressed property might hold the key to your dream home or a considerable fortune. A distressed property is put up in the market for auction when its owner is unable to repay the mortgage that he/she owes to the property lender. Even though finding potentially distressed properties is a lot more challenging than it seems, with the help of an experienced real estate agent it can be as easy as a walk in the park. Some of these might be ready for immediate occupancy while others may take ample time.
You might have come across a lot of responses (both negative and positive) from different people when you tell them you are planning to buy a damaged home. Well, we won’t be ruling out every aspect they say, but getting a property in a prime area and that too at an indubitably amazing price tag does seem tempting. If you are still doubtful about getting one, read some of our takes on it before discarding the idea completely.
Why you should buy a distressed house?
1. The Price Tag
Well, the main catchy factor is the price tag itself. A distressed property is usually listed in the market for an enticingly throw-away price than its market value. Since most of them are almost broken-down homes, home lenders are lurking in the market for a proper buyer.
Not every distressed property can be a great deal for you. Make sure you know your way around real-estate scenarios before buying the property or get the help of a trusted real estate company to experience the whole procedure with no hassle.
2. A Stepping Stone to Your Real-Estate Career
Buying a damaged property might seem frivolous, but it could hold the key to a great fortune. If you are planning to invest in real estate, then getting a distressed property might be a fair choice. Since their price is less than that of the market price, you can save an ample amount of money too. A few repairs here and there will make it approachable to flip. So, if you are planning to build a career as a home flipper, finding and buying distressed properties can give you a head start.
3. Own a Property in Prime Locations
Buying properties in prime locations like Brooklyn, Queens, and Manhattan can be pretty harsh on your bank balance. So, for these top areas, buying a distressed property rather than a new one will benefit you in many ways. You’ll not only get the property registered in your name but also can enjoy the luxuries of the city. Find a good interior designer to spice up your interiors and you are all set to go!
Most of the properties listed under foreclosure and short sales might be damaged or quoted as distressed property. This means the price tag for these properties can vary depending on the home lender. You’ll be having the upper hand in deciding the price when approaching an owner of distressed property. Since most of the owners try to get rid of the property as soon as possible, they might even agree to a price cut of as less as 15% or more (totally depends on your negotiation skills!).
In some cases, a distressed property might require complex paperwork, which in turn delays the whole business process. With the help of a qualified real estate company, you’ll have the luxury to leave all the complicated tasks to them and acquire the home right away. Other than this, having a trustworthy distressed property specialist will help you in finding the best properties listed for sale, and that too for a great deal. Be patient and educate yourself and work with professionals who can recognize the gross value and the future value of the property just by seeing it.