Take the Stress Out of a Distressed Property
There are some fantastic real estate deals on the market right now. From properties in various stages of foreclosure to bank-owned property, you have a great opportunity to get the home you want at a bargain price. But what about those holes in the wall and that pet stained carpet? Looking past these stressful items can help you reap huge benefits financially.
Over the past several years we have seen huge numbers of distressed sales. According to RealtyTrac, 23% of all U.S. home sales in 2011 were in some stage of foreclosure. So nearly one in every four homes sold in 2011 was a distress sale. Couple this with the fact that these distressed homes sell at a significant discount to the non-distress sales (40% discount for bank-owned homes), there is a huge opportunity for buyers.
Along with the big discounts on distressed property typically comes evidence of neglect. The home may have sat empty for an extended period of time or the previous owner may have stopped caring when the bank started getting nasty with them. Whatever the case, these deals typically come with issues. So how do you get past these items to realize your dreams? My wife and I purchased a bank owned property last year…so here is my checklist, as a builder that just went through the process, for evaluating potential properties.
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