If you’re kicking around the idea of finding and buying a distressed property, this guide will help. Check out these three tips for buying a distressed property that you can put to use when you’re ready.
These three tips for buying a distressed property can help you get the best deal – and make the most profit:
- Choose the right neighborhood
- Get creative in finding properties
- Get an inspection
Here’s a closer look at each.
Tip #1 for Buying a Distressed Property: Choose the right neighborhood
If you aren’t already eyeing a particular neighborhood, start doing some research. Location is incredibly important in real estate! Look for neighborhoods that could attract buyers or renters by scoping out the schools, nearby amenities and proximity to major roadways.
Related: What’s a tax sale property?
Tip #2 for Buying a Distressed Property: Get creative in finding properties
Don’t limit yourself to searching websites for distressed properties. Drive around town and look for homes that show signs of serious neglect, such as:
- Notices on doors or windows
- Broken doors or windows
- Overgrown yards
- Piles of newspapers or mail
- Damaged exteriors
You can also search tax records to look for delinquent payments, as well as mortgage records to look for past-due balances. You may even decide to talk to real estate agents, brokers and lenders to find out if they have the scoop on anything that you may find interesting.
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Tip #3 for Buying a Distressed Property: Get an inspection
Never, ever skip the inspection when you’re buying a distressed property. Your inspector can let you know exactly what’s wrong with the property so you can make an informed decision before you sign the dotted line.
Related: How much do home additions cost?
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