What Is a Distressed House and What Do I Do With It?

    The average home
    price was up 5%
    in 2020 and 2021 is on track to see modest increases as
    well. While some people are taking advantage of the current real estate
    market and selling their homes for full price or more in some cases, others are
    buying up bank foreclosure properties. 

    If you’re in a position to scoop up
    one of these properties, also known as a distressed house, there are some
    reasons why you might want to go ahead and do it. 

    Why do homes or properties become
    distressed? What do you do with a distressed house if you have one or purchase
    one? Keep reading to learn more. 

    is a Distressed Property? 

    Do you have that one home in
    your neighborhood that is in a state of disrepair? This is a distressed
    property. How about homes ending up in foreclosure due to the massive unemployment
    rate that resulted from the pandemic? These are also referred to as distressed

    A distressed property can be any
    property (home or land) whose owner has fallen behind on either the mortgage
    payment or tax bills, or both. 

    A lot of times, companies will come
    in and purchase these properties and turn them into rentals or rehab and flip
    them for a profit. 

    Do I Do With A Distressed Property? 

    If you’re trying to unload a
    distressed property, there are a few things you should do to get the best price
    for it.

    • Fix some of the more important issues going on with the
    • Verify potential buyers’ information to prevent being a
      victim of fraud.
    • Be honest about everything to avoid the buyer pulling
      out at the last minute. 

    Do you have a distressed property?
    Are you wondering “How can I sell
    my house fast
    ?” Get a fair, all-cash offer for your property no matter
    the condition or reason on your timeline. 

    If you’re thinking about buying
    a distressed property, there are some things to keep in mind. Let’s look at
    some of them. 

    • Research the area and try to find the most profitable
      real estate market. 
    • Look for up-and-coming neighborhoods. 
    • Get pre-approved for a mortgage to have a leg up on the
    • Use an experienced real estate agent, preferably one
      with experience with distressed properties. 
    • Stick to a budget for purchasing and rehabbing the

    Not all distressed properties are
    good investments. Do your homework before committing to any property. 

    You Have a Distressed House to Sell? 

    Now that you know what a distressed
    house is and that there is a market for them, you can explore your options. Are
    you a buyer looking for a distressed property or do you have a distressed house
    to sell? Whatever your position, research the best way to handle it for your

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