When I started marketing distressed properties–foreclosures and short sales the market had just began its downward spiral. The year prior A national Bank had eight (8) application for short sales. Now some 4 years later, 1/3 of the market is distressed. Property values have claimed a great portion of real estate equities, and economic reversals have left many families in a position to lose their homes.
As a realtor, It has become apparent that this current market is an exceptional opportunity to find great values in home purchases. In the distressed market, the major tools to achieve that end are patience and tenacity. Many Sellers lose heart as their homes sit with accepted offers for months while banks decide their fate. Home buyers also feel the strain of the accomodations of buying properties “as is”, vacant and on the banks time schedule. From where I sit, I can offer two pieces of advice.
If patience and tenacity are not strong suits for you, there are many homes in the market place that are not distressed. Find what you want and purchase it through the normal process. Your agent can present you with many options that will be great value and great fits.
If you would like to purchase a distressed property, find an agent that understands the market. Realty Trac, MLS and equator have resources to help, but none are better than an experienced agent to guide you through the twists and turns of forclosures and short sales.
Next, have your financing and finances ready to go. Most distressed properties, will require repairs and restoration. 203K loans and smart saving are two great tools to make the dream a reality. Remember “Sweat Equity” is that. Do not be afraid to ask questions and learn to do repairs.
Finally, realize thst the market has changed and most banks are pricing distressed properties agressively. The offers will need to fall in line with the list price now more than ever.
Do not be afraid to speak open and honestly with your realtor so that he/she can help you get where you want to be.
Good luck and Happy Hunting.