Buying a Distressed Home
With so many short sales and foreclosures available in the Utah real estate market, it is hard to imagine that anyone would not want to take advantage of these great properties. After all purchasing a distressed property can offer the buyer substantial savings (an average of 28% savings last year). The truth is that there are lots of advantages to buying a distressed home, but there are also lots of potential pitfalls.
For starters, it isn’t just potential home buyers that are out looking for properties at a discount. Investors flock to distressed properties, and the more competition there is for a property the higher the price can go, so you may not get as much of a bargain as you were hoping for.
Secondly, the transaction process for buying a foreclosure or a short sale often takes significantly longer than a traditional transaction. The negotiation of a short sale can take months and it is riddled with uncertainty. The banks will continue to market and accept offers on a home after you have submitted your offer. It definitely can be a roller coaster!
Some foreclosed properties are in rough condition. Homes were meant to be lived in and as such there are problems that crop up if a home has sat idle for a long time with little maintenance. Not to mention that some home owners aren’t all that thrilled to find out that they are getting foreclosed upon and will stop maintaining the property and even deliberately damage the property.
But, there is a bright side! The market is full of distressed properties and lots of them are well maintained and cared for homes. The economy has forced lots of people to walk away from their homes who generally wouldn’t be in that situation.
Another bright side is that when you are purchasing a distressed property you are likely going to be working with a highly motivated seller. Whether it is the bank in the case of a foreclosure, or in a short sale, with sellers who are in financial trouble and anxious to get out of a mortgage they can no longer afford. No matter what type of distressed property you are interested in purchasing, you can bet that the seller wants to get the property sold!
It is vital to work with an experienced and well trained real estate professional when you consider purchasing a distressed property. We can help you determine if this type of purchase is the right choice for you and your family. We can help you navigate and overstep the common pitfalls in these types of purchases. We will be there throughout the entire purchase to make the process as stress free as possible. We look forward to working with you!