- Piper Moretti
Considering a Distressed Property?
Homebuyers are always looking for that special bargain. The old saying, “buy the
worst home on the best street,” insinuates that buying a “fixer-upper” home can
be a great investment. While it’s always important to get the most for your
money, what about distressed properties? Are they really the best value?
Before you decide to buy, it’s important to understand what is considered a
distressed property. While a distressed home might need significant repairs, the
term “distressed” is actually referring to the financial situation of the seller
(foreclosures and short sales) rather than the condition of the home.
The home itself might also have material issues. Everything from deferred
maintenance to major system problems may be present, and a distressed
homeowner will not be in a position to make repairs. Selling a home “as is” does
not, however, eliminate their responsibility for disclosures and these must be
carefully reviewed.

There are advantages to buying a distressed property. Often these homes are
listed lower than market value to encourage a quick sale. If the home is
considered a fixer-upper, the homebuyer might save thousands of dollars
compared to other homes in the area. If you are handy or willing to tackle this
kind of project, then buying a distressed property might be a great solution for
you; just ensure you get a comprehensive home inspection so you are fully aware
of the condition of the home.
If you find that the projects are beyond your skills, or the cost of the repairs
would outweigh the savings, consider buying a more expensive home that is
move-in ready instead. You’ll want to make sure you’re not getting in over your
head…or your budget. In this way, the property will be the bargain you hoped it
would be.