Why Distressed Real Estate Can Offer Buyers Significant Savings in Virginia & Maryland
”Distressed property” is a blanket term for homes in foreclosure, short sale or that are REO (Real Estate Owned). These properties can typically be acquired at 15-35 percent below market value, which depends on the condition of the home. Below are definitions of different types of distressed Virginia & Maryland real estate, so that you can be familiar with the terms.
Foreclosure: When a homeowner has defaulted on their mortgage for a specified period of time, the bank takes possession of the Virginia & Maryland real estate.
Short Sale: A homeowner facing foreclosure may request a short sale from their lender to sell the property for less than what is owed.
REO: Real Estate Owned properties have gone through foreclosure and are held by the bank. This increases the possibility of purchasing these homes at a discount because maintaining an REO is costly for a lender.
All three scenarios offer opportunities for substantial savings, yet all include stipulations with regard to the contract and terms of purchase. When you buy this type of property, you are dealing with a financial institution instead of a private seller, so it may take more time to go to closing. There is usually little room for negotiation on the asking price or other contract terms.
According to the National Association of REALTORS®, foreclosures and short sales accounted for about 16.2 percent of housing sales as of December 2016. These numbers are far lower than the peak of the real estate crisis a number of years ago. Still, there are a lot of these properties around and they may continue to be excellent opportunities to gain equity in a property quickly.
If you are willing to take the chance and be patient, a distressed property could pay off. Most buyers see an increase in the value of their Virginia & Maryland real estate within a short time of purchase. It is strongly advised that buyers work with an experienced property expert when interested in distressed properties because of the additional paperwork and requirements to complete the transaction.
If you are considering selling your home, be sure to contact us at (240) 751-9929 or email us at p3homesolution@gmail.com so we can provide you with a Fair Cash Offer on your Virginia & Maryland house.
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