Wondering where that secret stash of foreclosed homes can be found? We have bad news and good news.
Let’s get the bad news out of the way first: there are very few distressed properties available. And when that rare distressed property does go to market, it will be bid up to market value or above.
SELLER’S MARKETS ERASE FORECLOSURES
Distressed homes have been dwindling since 2012 due to Denver’s appreciating housing market. Over the past 3 years, Denver area home prices have risen 1% per month. Appreciating homes and high homebuyer demand mean Denver is currently a seller’s market.
In today’s housing market, distressed homeowners are easily selling — typically for more than their homes were purchased — rather than being forced to foreclose.
WHAT TO EXPECT WHEN BUYING DISTRESSED PROPERTIES
Still set on trying to find a distressed property? There are several types of distressed homes besides foreclosures (when a bank sells a repossessed property). These include:
- HUD Homes: when Federal Housing and Urban Development sells a home due to a foreclosed government loan
- Short Sales: when a property is sold for less than the amount owed on it
Distressed homes appear on the market in MLS listings the same as other properties.
Certain financing options — such as FHA or VA — will require a stricter appraisal and Inspection process for distressed homes. If a home is in bad shape and it fails inspection, it will not qualify for some financing options. Generally, distressed homes are sold as-is and owners are unwilling to fix any inspection items.
THE GOOD NEWS
The absence of foreclosed homes signals that the time to buy is now. Why?
In a seller’s market, home prices rise. Buying now means your home will be a true investment and you will see a return in growing value.
Denver’s housing market is experiencing unprecedented growth as it responds to Colorado’s population boom. Experts predict this housing trajectory to continue as “home prices are expected to climb 4.1 percent in 2018” nationally and even more so in Denver.
What are you waiting for? Contact me today to start the search for your new home!