Depending on your perspective, buying a foreclosure or a short sale property may seem like either the best or the worst idea in the world. Today I will discuss a few benefits to buying in this type of market, and in an upcoming post I’ll discuss some of the things you should watch out for when buying a distressed home.
1. When properly researched, a distressed property may yield a significant amount of equity in a very short period of time. These homes have to be sold quickly, so the prices are often far below market value. Since real estate is widely considered an excellent way to invest, having equity in a market in which most people are losing value is a great advantage.
2. Although the term “distressed” often conjures up images of houses in bad areas on the verge of collapse, the reality is that the mortgage crisis has affected borrowers of all kinds. It’s not impossible to find a short sale or foreclosure in a desirable area that needs minimal repairs. This allows new or move-up buyers to purchase in areas that might otherwise be cost-prohibitive.
3. The government, various financial institutions, and savvy Realtors are working together to streamline the distressed property sale process. Although it’s by no means perfect, it’s starting to become easier to process these transactions in a shorter amount of time.
For more information, please feel free to visit my real estate website at www.baltimoreagent.net