There are many investments that are made in real estate, most of which are expected to allow the price of the property to go up. However, sometimes the value of a property goes down, rendering it "distressed". This has been the primary situation of today's market. If you have run into a property that is like this, you will want to decide if it is worth investing in.
When a property is distressed, it has more than likely lacked the continual care and attention needed by the previous owners. If the seller is facing a short sale, where they may still reside in the home, upkeep is usually not a priority anymore. In other possible cases, the property is part of a foreclosure, now possibly now abandoned as it may not have been lived in for a specified amount of time. These factors may need to be taken into strong consideration when making a decision to purchase. Any home will require work to make it your dream home, but a distressed property will need a lot more attention to it and you need to decide just how much time and money you are willing to invest in it to make it your home.
Before looking at this type of property, you will want to make sure that it will be worth your investment. While a distressed property will usually go down thousands of dollars because of the quality, it may not necessarily be cheaper. It's expected that you will put a specific amount of work and money into the home for repairs to make it a viable part of the neighborhood.
If you personally have the extra funds or plan to get a restoration loan to fix up a home, then a distressed property may indeed be for you. However, if you don't want to put in the extra effort, then acquiring this type of property may eventually lose you money and even the sense of satisfaction that you should have as a homeowner. Also, decide whether you will be able to profit off of the investment in the long run according to the neighborhood, market, and your intentions for using the property. Look at your interested area. Are other "For Sale" signs up? Are other properties in the area being bought, renovated and becoming homes again? This helps to determine the rise or decline of the neighborhood as well as projections of the area's future for your investment consideration. If you are really interested in a particular property or area, we can help with this type of research.
While a distressed property can be beneficial in terms of savings in purchase price, it will need to fit your goals and your lifestyle in order to become a valuable home for you. As long as you have assessed your financial stability and goals and are able to align your extra money, time and work, by all means pursue a distressed property and turn it into what you want - a beautiful home.
If you are interested in purchasing a distressed property to make your dream home, let The Marcus Rice Team help you. As a Certified Distressed Property Expert, Marcus can help you understand the process of purchasing a property within a short sale process as well as a property that's in foreclosure.
The Marcus Rice Team is here to help you find that house to call your home.