Distressed properties: What’s changed for home buyers
April 16th, 2015
| Home Buying Tips, Distressed Properties
Interesting in buying a distressed property? You’ll still find these types of homes on the market. But there are definitely fewer bank-owned properties and short sales available for sale today than there were a couple of years ago. Beyond a smaller supply of available properties, here’s what else has changed for home buyers:
Discounts aren’t as deep. Foreclosures are selling for less of a discount than in the past – in general, between 12 percent and 16 percent off market prices compared with discounts of 20 percent or more in the past. That’s why you don’t want to narrow your property search to only distressed properties. Bargains and good deals can be found anywhere.
More competition. With fewer distressed properties available, you likely will have competition from other buyers. While you want your offer to be accepted, you don’t want to pay too much or make an offer that’s not contingent upon a home inspection. With a bank-owned property sold on an as-is basis, a home inspection is a must. And your real estate agent can help crunch numbers so that you’re offering a fair price for a home based on its current condition.
The bottom line: Good deals are available throughout the housing market. And whether they are distressed or not, a real estate agent can help you find them.