BusinessDictionary.com defines a distressed sale as an urgent sale of normal or distressed goods, at deeply discounted prices.
For the purpose of this article, “distressed goods” refers to homes that sell at deeply discounted prices via either a short sale or foreclosure.
We have been and still are in a housing market unlike any we’ve seen in years. The economy of the past few years has produced more properties that are either in foreclosure or short sales status.
From our point of view, many buyers (we’ll call Group A) routinely steered clear of distressed sales because they had the idea that these properties were damaged money pits and very likely to be trashed. Therefore they avoided taking such a risk on a big investment.
But then there are others (we’ll call Group B) who enter the market either for the first time or as a seasoned buyers, who view distressed sales as an opportunity.
They’re searching for (and finding) great properties that have been overlooked by those people describe above who categorically excluded foreclosures and short sales.
If you’re part of Group A, you may want to reconsider purchasing a distressed sale because they make great sense, especially when the market is tight.
What is the difference between a Foreclosure and a Short Sale?
