The Pros and Cons of Buying Distressed Property
There’s no question that real estate bargains can be found everywhere. However, there is more to getting a great deal on a distressed home than meets the eye. With up to a third of all home sales originating from the distressed property market, now is the time to get smart about getting a great deal. After all, this is what buyers likeCalgary Property Options does.
According to information from the National Association of Realtors, distress sales, which are “all-cash sales,” are popular and growing more popular each year. Also, there is no shortage of these types of homes to choose from. However, there are some potential downsides to know about. Keep reading to get to know some of the specific pros and cons offered by distressed home sales here.
Pro: Lower Prices
One of the main reasons that we buy houses company will be interested in distressed properties is because they are cheap. Sellers, including owners of a home that’s about to be foreclosed on, as well as lenders and banks that already own foreclosed homes, are ready to unload the property. When a buyer or investor is dealing with a motivated seller, it means they can get a great deal.
Con: The Paperwork
Purchasing a distressed or foreclosed property may take longer than conventional properties to buy. The main reason for this is that many distressed properties are owned by the original lender. These companies usually have workers who are already spread thin, which means they can’t provide undivided attention to what is going on. As a result, anyone interested in this type of purchase will need to be patient with the process.
Pro: Buy Low and Sell High
There aren’t any guarantees when it comes to real estate, but a distressed property, similar to any commodity, has some type of investment value. In fact, industry experts have said that home prices are beginning to rise again and, after several years, the value of any distressed property is going to go up.
Con: Location Concerns
In many situations, a distressed property is going to be located in a low-income neighborhood. This can impact the value of the property significantly. If this is the case, and a seller wants to sell, they should look into cash buyer services such as https://www.propertyoptions.ca/.
Pro: Lower Interest Rates
The fixed mortgage rate changes year after year, but it has remained low for a while now. Buying now is a smart move, as the interest rate isn’t going to get much lower (according to many experts), and the low rate is going to help to keep the payment for the mortgage on a distressed property much lower.
There are both pros and cons related to purchasing a distressed property. Be sure to keep all the information here in mind when deciding if this is the right move. Any time a large purchase is being considered, a person needs to evaluate all their options and get to know the pros and cons to make an informed purchase.
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Phone: (403) 206-7003
Address:440-10816 Macleod Trail S.E. Suite #266
City: Calgary
State: Alberta T2J 5N8
Country: United States
Website: https://www.propertyoptions.ca/
