How to sell a distressed property

What is a distressed property?

When we talk about distressed property, we mean a home that has been foreclosed and is now up for sale. The deed to the house was given to a bank or other lender as part of the foreclosure process. Many times you will see banks selling their distressed properties through real estate agents since they can't operate as a realtor themselves.



A real estate agent will try to find cash buyers for the property if possible to recoup some of the losses that were incurred during foreclosure. It is common to try and sell distressed properties for less than what they are worth since the bank would like to get rid of them as quickly as possible.

What makes a home look like a distressed property?

If you know anyone who works in law enforcement they will likely be able to spot a distressed property. Bank or government representatives sometimes show up at these homes and change the locks on the doors to keep anyone from entering which then makes it look like no one is living in the home.

If you see a house that looks like someone has kicked their way into it, chances are good that it has been foreclosed. The front door may be busted in and the windows might even be boarded up, but this is usually done to secure the home after it has been foreclosed on.



While there are many different indicators that a property is distressed, it's sometimes not easy to recognize them on your own which is why it's best to ask a professional. A real estate agent can help you with all of your selling needs and they will easily be able to tell if the property is distressed or not.

How to sell your property as-is?

If you want to sell your property as-is, it is important to realize that you won't get as much for your house since it's probably in poor condition. You should take some time to fix up the home once you determine how much it will sell for. If you're having trouble finding a cash buyer then consider listing with someone who specializes in distressed properties for a fair price.

Real estate investors are often looking for distressed properties because they can get a good deal on them. If you have the time and money to fix up your home then getting a real estate investor involved might be a good way to get a fair price for your house instead of just selling it as-is.



How much does a distressed property sell for?

It depends on the area and the overall condition of your home. It's important to be realistic since you will likely only get a small percentage of what it is worth if you are trying to sell as-is. If you fix all of the problems yourself then real estate investors might be willing to pay more for it because they can make money by renovating the property.

Tips When Selling A Distressed Property

Now that you know how to sell distressed property, you need to know what tips and tricks can make it easier. This will ensure that you recoup some of your expenses and get the most out of your house sale.

1. Hire A Professional Realtor

If you want to get top dollar for your home then it's best that you hire a professional to sell it. This can help you avoid several common problems that most people run into when they try to sell their homes on their own.

2. Get The House Ready For Sale

Make sure that the house is in good condition before you start trying to sell it. Repairs, updates, and clean-up will go a long way when it comes to sale value and will make it much easier for a real estate investor to get approval.

3. Don't Miss Out On The Necessities

Most houses need certain necessities like working appliances and plumbing, air conditioning and heating, electrical wiring, etc… Focus on selling your house as-is while also trying to sell the other necessary items that have been removed. A real estate investor may be willing to purchase some of these items with the house or if you can rent it out then that might also help you get more money for your property.

4. Take Care Of The Yard

A yard sale is not something most people are looking forward to but sometimes it's necessary in order to get a good deal. You can try to sell some of your items that you don't need and you might be surprised at how much money you can get for them.

5. Consider Renting Out The Property

A real estate investor might be willing to sell you a property but if rent is not enough then they can also lease it from you. You can try to get the extra money that way and make sure your house gets sold while getting rid of all of the clutter in one fell swoop.

6.  Be Realistic

Distressed homes don't sell for full value which is why you need to make sure that you are being realistic. You should also consider renting out the house if necessary and getting everything ready so that it can be sold as soon as possible.



7. Don't Give Up

Sometimes a distressed home will sit on the market for a number of months before you finally get a buyer. You just have to be patient and keep trying until someone is ready to buy the house. This might take some time but it's better than dealing with investors who are willing to purchase the property as-is.

How to Sell A Distressed Property: Final Thoughts

Selling a distressed property is not the easiest way to get rid of your home but it's often necessary. If you want to avoid bidding wars then selling as-is might be one of your best options and you should consider getting an investor involved if that doesn't work out for you.



Use these tips to help increase your chances of finding a buyer and getting a good deal for your home. If you need help finding the right real estate investor then don't delay when making that decision.