We’ve all seen the television shows and heard the stories. Eager buyers willing to invest “sweat equity” purchase fixer-upper properties, do the work, sell the house and make a nice profit. Or buyers purchase a foreclosure property at a price below market value, do a bit of painting and repairs, and end up with their dream home.
If only most home-sweet-home stories were that easy. The reality is that buying a distressed property, i.e. a foreclosure or short sale (pre-foreclosure), can be a lengthy, complicated and frustrating process. Many properties are cash-only and are not subject to inspection prior to purchase. While there are deals to be had, buying a foreclosure or short sale is not for the inexperienced, impatient or faint of heart.
Opportunities for buyers in today’s market are plentiful, and by no means, limited to distressed properties. Many homes are exceptional values, in great condition and priced to sell. Couple that with low interest rates, and you have a true buyer’s market like never before.
One caution: Creditworthiness is a key to purchasing any home. Excellent credit and highly detailed documentation are required to get a mortgage in today’s tighter credit market.