Every year, the number of distressed properties grows because homeowners are faced with various financial and situational challenges. If a house is not going through a foreclosure, it is being abandoned because it is too old, or the owner does not have enough money for repairs. Another reason a person can end up with such property is the lack of construction completion funds when the project is midway. Because of that, these people have no option but to put the properties up for sale. However, because of their condition, they cannot sell them the same way they would when disposing of properly maintained houses. Here is why you should buy a distressed property.
Get the Lowest and Most Affordable Prices
Can you imagine buying a property at a third of its market value? With distressed property, the owner does not have many choices because they really want to sell. The only thing on their mind is to get rid of the houses and move on with their lives. On the other hand, the buyer has all the power, and so, they can dictate prices. You may be surprised to find someone accepting a price even lower than 30% of the real cost. Therefore, if you do not have the budget to buy a home, this could be your perfect plan.
The Financial Gain
The law of home equity states that your equity will increase as the value of your building grows. Because of that, buying distressed property is a chance for you to grow your equity because raising the value of such property is easy. As long as you know the right way to boost the value of a property before listing, you are in a good position. The same applies to those people who buy houses without the intention to sell. You can always upgrade it and have a good home without breaking the bank.
No Worries about Delayed Approvals
If you have been in the real estate business, you know that building a new house requires you to go through various regulations. You will be required to submit your plans and other items for approval. However, what happens when the approval process does not favor you? One option would be to go for off-market property listings. With distressed property, you are sure that you can own a home without having to ask for any approvals. It means that you will not only do it fast, but you will save on additional costs too. It becomes even better when the house requires minimal renovations.
To get the best deals on a distressed property, you need to know how to go about the purchasing process. The best option is to find a real estate agent who understands the process and let them negotiate the deal on your behalf. We can help you to get such property and ensure that you have the kind of house that you have always wanted. Contact us today to check out the latest properties.
