Everyone wants a distressed property because they are
thousands cheaper and are usually amazing “finds”. Right?

You already know the first thing I’m going to say so let’s get that part over with; it depends. There you didn’t want to
read that and I didn’t want to say that but it is how it is. Now, let’s hit a few points about that and see if we can’t stir up better reading.

Weigh Your Options

Question for you, “What is “cheaper” and what is an “amazing find”?CHEAPER #1: Let’s agree that there are two kinds of “cheaper”. Right? Of course there is the initial price thing. Like, “I bought this house for $275,000 and
several similar sized houses just all SOLD for over $350,000 each.” That is cheaper initially. Usually that also means you just bought a fixer-upper and
you got into an area that may otherwise not have been possible. This is awesome when it happens when you also tell your broker one other thing. “I am ready, able and willing to fix this place up and take on the project mentally, physically and financially.” Nice buy in this case. Very cool. Even cooler, you
got one of those houses that need actually less repair and work than expected. This does happen and it is really REALLY cool.

CHEAPER #2: The other “cheaper” is a lot trickier. The other cheaper may look like one of the follow two scenarios:

Scenario #1:

“I bought a house already all fixed up because I got the remodeled house for a fraction of what it would have taken me to fix up the fixer.” Quite often, maybe more often, would you believe that the nicer house was actually the “NET CHEAPER” house because of the cash it may have taken to remodel the fixer? What do you think? Are you the “I can fix it all” person? or, are you the, “I’m not handy” or the” I can but I don’t want to” kind of buyer? Can you imagine these next two words showing up in your remodel; Scope Creep? If so, Scenario #1 is your cheaper. Buy the already done house and get the whole package cheaper than it would cost you to buy all the materials and labor. Not even counting the frustration and stress related to your time invested.

Scenario #2:

“I bought the fixer, had a great time remodeling it, and I ended up with sweat equity”. Is this you? These houses are out there and you have the skills to know the difference between a loser and a winner. If this is you, your broker pulls comps, and you use the wide expertise of your broker to discuss trends, pricing data and examples of remodeled homes nearby. You also may have carpentry and/or mechanical skills and know other tredespeople who do and who may assist you. Yes, Scenario #2 is your cheaper. You love it! It is plain fun!

Finally, what is an “amazing find”?

Isn’t it simply either one of the two scenarios above? Could the buyer who buys Scenario #1 be as able to brag about an “amazing find” as the buyer who bought Scenario #2? What would most skilled real estate brokers say? My experience is that they can definitely be equally great finds. Think about it this way. The net savings on either scenario could be equal even if one ended up with sweat equity and one did not. Why? The answer is because the “Sweat Equity” part is an additional benefit that the other buyer was never going to try for or realize. They won’t fix up a house themselves. So, each buyer saved money and ended up with their amazing find. I think “AMAZING” is truly in the eyes of the beholder who, THE WHO, buying the house.

So, bottom line:

A distressed property, like a Foreclosure or Short Sale is not always the best deal. It does depend on who is buying the property. Who are you? Find a great real estate broker who is willing to work with you whoever you are. Of course, I feel quite certain that you will find such a real estate broker at the  Windermere Lloyd  Tower Office. I am friends with brokers of other companies that impress me, but the Windermere Lloyd Tower Brokers impress me daily. I respect them and enjoy working with them every day. Check them out and see what you think.