The nation’s recent economic downturn hit a lot of families hard, causing many to declare bankruptcy or to foreclose on their homes. As a result, the market has been flooded with cheap homes for sale. Are you considering purchasing one of these distressed homes for sale? If so, tread carefully. While they can offer a fantastic deal, they often come with these five factors you’ll want to consider as well.

5 Things You Should Know About Distressed Homes

1. Length of Time to Close

Despite the name “short sale,” it can actually take several months to close on a distressed home. Banks generally aren’t too pleased to settle for less money than a home is worth, and working with two banks means twice as many people who can delay the process.

2. Hassle and Stress

When purchasing distressed homes, it is very common to find out that the homes have liens well into the process. Dealing with multiple unforeseen delays and complications can be very stressful.

3. Homes Sold “As Is”

Furthermore, many distressed homes aren’t in excellent condition. Whether the last owner didn’t have the money to take good care of the place or the place sat empty for some time, these homes for sale might have damages you’ll have to repair yourself.

4. Difficulty of Qualifying

During a short sale or foreclosure, banks often look closely at the finances of both the buyer and the seller. After all, the bank doesn’t want to get in the same situation again. If you have poor credit or a history of credit problems, the bank may be less likely to work with you.

5. Slightly Lowered Prices

While it is possible to get a great deal on distressed homes for sale, not all foreclosures and short sales offer that great of a bargain. The sheer number of distressed homes for sale often lowers the prices of all other property in the area, so the extra hassle and time may not be worth the small savings.

For more home selling direction, or to schedule an appointment! You can contact Ed Rippee at (816) 587-2323!