Buying Distressed Properties
It’s easy to get the impression that lenders are simply “giving away” distressed properties. But that’s not the case. Success with buying a distressed property begins with selecting the right agent. David Morris Group has decades of real estate experience in the Reno, Sparks and Lake Tahoe area and expertise in buying and selling distressed property.
Buying Distressed Property
Many of the homes for sale today – as many as half in some markets – fall under the category of “distressed properties.” These are homes that have either gone through foreclosure or are being marketed as “short sales.” In a short sale, the homeowner can’t afford to maintain the mortgage, but the lender – rather than foreclosing – agrees to the sale of the property for less than the balance of the loan.
These types of sales have different dynamics than traditional sales – with more paperwork, often a longer transaction process and, in some cases, more frustration for the buyer. For these reasons, many buyers shy away from foreclosures or short sales.
David Morris Group understands the potential pitfalls of purchasing a distressed property a thorough knowledge of the Reno, Sparks and Lake Tahoe market, and we’ll help you get a great home at a great price. In fact, David Morris Group is certified (Certified Distressed Property Experts – CDPE) to handle the unusual/distressed circumstances that some of today’s buyers find themselves in. CDPEs have reported a 49% decrease in the average time to complete a short sale according to a survey from the Distressed Property Institute. We can guide you through the process and help you locate and purchase just the right home for you.
This is a great time to buy a home – distressed property or not. With historically low interest rates, and a surplus of homes in the Reno, Sparks and Lake Tahoe markets, there are bargains to be found.
Advantages of Buying a Distressed Property
First, you’ll be dealing with a highly motivated seller – either a bank in the case of a foreclosure, or in a short sale, sellers who are in financial trouble and very interested in getting out of a mortgage they can no longer afford.
These types of sales take much of the emotion out of the process. You won’t be insulting anybody, for instance, if you make an offer that’s lower than the asking price. (That’s not to say that the low offer will necessarily be accepted, of course.)
Lenders are extremely interested in getting these homes sold and off the liability side of their balance sheets. Many foreclosed properties can be purchased for only a percentage of what they would have commanded five years ago. This situation is beginning to change, though; bidding wars are breaking out on some foreclosed properties these days, especially those that are moderately priced. David Morris Group is able to help you arrive at a reasonable strategy for making an offer.
Interested in searching for foreclosures in the Reno, Sparks and Lake Tahoe area? To guide you through the process – from obtaining a loan to identifying a home, to negotiating with the sellers (whether homeowners or banks), to closing – contact us today.
David has more than 30 years of successful real estate experience and understanding ofthe northern Nevada region.