Guide to Buying Distressed Properties
A Guide to Buying Distressed Properties
If you are thinking of buying a distressed property, there are some major things you need to consider. When checking out a property, you should keep in mind that if something sounds too good to be true, it often is. That being said, the distressed property market can be a source of incredible deals for the savvy buyer. Because there are so many distressed properties out there today, you have to keep specific things in mind so you can get the deal you want.
Research – When you find a property that is distressed, you need to research and find out every single thing there is to know about the property. Where is the property located? How old is it? What's the neighborhood like? Which school district is it in? Always have a home inspection done on any home you think about buying. The hidden problems that the $500 or so you spend will be well worth it if there is something wrong that turns out to be fairly major.
Property Value – Check out the value of the property based on comparisons to similar properties on today's real estate market. Don’t go by what the selling price is or by an appraisal that could have been done over two years ago. Check out the tax records on the property, get some sales records of other properties in the area in order to see how things are selling that compare to this property, and get some opinions and advice from real estate agents that have seen the property. Make sure you are getting the proper value of the home before you make an investment in it.
The Right Team – Always have the right people on your side working along with you when you consider buying distressed property. A good broker or realtor is needed if the home is a short sale, a bank-owned property, or a foreclosure. They have all the experience needed to work on that type of a property transaction, and they have probably had plenty of experience on closing those types of properties recently. Their negotiation skills will come in handy. A lender will be needed if you require financing on the property. Having a good, experienced lender can find you the best deal possible. An experienced attorney can go over and explain all the legal requirements and documents involved in a distressed property sale.
Best Offer – One vital step to buying distressed property is making the right deal from the get go. There will always be another bidder trying to get the deal as well, so you have to be sure your making the smartest offer possible. If you go too low on an offer hoping to get a good deal, remember that you can have four or five others out there that offer just a bit more and take the sale right out from under you. Always make the best offer you can the first time you make an offer, because in most cases there are going to be others bidding on these distressed properties.
Distressed properties can be good deals, but they also be accompanied by a lot of baggage. Always be patient and be willing to walk away from the deal if it’s not what you want. There are always plenty more deals out there to be found. Be patient, and it will pay off.
Alexis Frank enjoys writing about lending rates and finding the best health insurance quotes.
If you are thinking of buying a distressed property, there are some major things you need to consider. When checking out a property, you should keep in mind that if something sounds too good to be true, it often is. That being said, the distressed property market can be a source of incredible deals for the savvy buyer. Because there are so many distressed properties out there today, you have to keep specific things in mind so you can get the deal you want.
Research – When you find a property that is distressed, you need to research and find out every single thing there is to know about the property. Where is the property located? How old is it? What's the neighborhood like? Which school district is it in? Always have a home inspection done on any home you think about buying. The hidden problems that the $500 or so you spend will be well worth it if there is something wrong that turns out to be fairly major.
Property Value – Check out the value of the property based on comparisons to similar properties on today's real estate market. Don’t go by what the selling price is or by an appraisal that could have been done over two years ago. Check out the tax records on the property, get some sales records of other properties in the area in order to see how things are selling that compare to this property, and get some opinions and advice from real estate agents that have seen the property. Make sure you are getting the proper value of the home before you make an investment in it.
The Right Team – Always have the right people on your side working along with you when you consider buying distressed property. A good broker or realtor is needed if the home is a short sale, a bank-owned property, or a foreclosure. They have all the experience needed to work on that type of a property transaction, and they have probably had plenty of experience on closing those types of properties recently. Their negotiation skills will come in handy. A lender will be needed if you require financing on the property. Having a good, experienced lender can find you the best deal possible. An experienced attorney can go over and explain all the legal requirements and documents involved in a distressed property sale.
Best Offer – One vital step to buying distressed property is making the right deal from the get go. There will always be another bidder trying to get the deal as well, so you have to be sure your making the smartest offer possible. If you go too low on an offer hoping to get a good deal, remember that you can have four or five others out there that offer just a bit more and take the sale right out from under you. Always make the best offer you can the first time you make an offer, because in most cases there are going to be others bidding on these distressed properties.
Distressed properties can be good deals, but they also be accompanied by a lot of baggage. Always be patient and be willing to walk away from the deal if it’s not what you want. There are always plenty more deals out there to be found. Be patient, and it will pay off.
Author Bio: Rob Alley earned a bachelors degree at Virginia Tech, in Blacksburg, VA in Biology. Rob Alley consults with homeowners regarding Real Estate transactions and speciliazes in listing and selling Charlottesville Real Estate. Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
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buying a distressed property can be complicated. buying a distressed property is not easy deal that you can make. hiring can be great for your deal. i like the points that you made here..thanks for sharing.
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