Distressed Propertiesâ€”Not Always The Bargain They Are Made Out To Be
â€œDistressed properties can have great appeal,â€ says Wendy Forsythe, executive vice president at Atlantic Pacific Real Estate. â€œDiscounted prices and historically low interest rates make these homes affordable to many families who might otherwise not be able to buy a property. But buyers also need to be selective because not every distressed property is a bargain.â€Â
Typical discounts on foreclosures are at about 19% on average. That number gets brought up and buyers have a tendency to become blinded to other relevant details that are top priorities in real estate. Here is a convenient list to keep in mind if you are looking to save the big on the distressed property sales:
Know any prior claims on the property. â€œIf a distressed home has been financed with two or more loans then the sales process can be far more complex,â€ according to an article for RISMedia written by Atlantic Pacific Real Estate.
Â Get Financing. How does a buyer hope to purchase the property? By preparing financing in advance, buyers are able to move more efficiently when a distressed property does come on the market.
Judge the Condition. Getting a deal my result in getting in over your head. Getting a thorough home inspection prior to committing financially to anything!
Â Foresee Delays In Advance. Ask your realtor to talk you through any potential delays.
Source: â€œBuying a Distressed Home: What You Need to Know,â€ RISMedia (July 15, 2012)