Distressed, or fixer upper, houses are houses left in disrepair when they can no longer be maintained by the owner. When distressed properties are for sale, it’s typically a result of bankruptcy, divorce, or tax delinquencies. These distressed properties are typically undervalued and can result in a big return on your investment. If you’re looking to buy a home and don’t mind a neglected property, a fixer upper can be a great investment and we can get you pointed in the right direction.
When you’re looking to buy a distressed / handyman home, you’ll find it’s similar to purchasing any other home. Set up your financing ahead of time by getting a mortgage pre-approval letter. Better yet, make an all cash offer which is generally favored. Once you decide on a distressed home, you will work with a realtor to negotiate a price, finalize the terms, secure a signed real estate contract, along with additional details.
Be prepared to back up and justify your offer with facts. For example, when creating an offer, take into consideration how long the property has been neglected, the condition it’s in, as well as the market value of similar homes in the same neighborhood. Although you can purchase some distressed homes for half of their non-distressed value, you want to avoid low-balling to the point where you are kicked out of the running. Also, be prepared to leave some room for a counteroffer. If possible, get an inspection after making an offer. If you decided to back out of the contract, you may lose some money but you won’t be obligated to go through with the sale.
Once we learn that you are searching for a fixer upper for sale, we will contact you quickly. We look forward to helping you find a house that fits your needs.