What Is a Distressed House?
A distressed house is a property that needs repairs or renovations or going through foreclosure and is typically sold at a discounted price. The term "distressed" can refer to a variety of conditions, such as:
- Foreclosure: in the process of foreclosure, or has been foreclosed on, by the lender due to the homeowner's inability to pay the mortgage.
- Short Sale: being sold for less than the outstanding mortgage balance, with the lender's approval. It is usually done to avoid foreclosure.
- Probate sale: being sold as part of the probate process, usually because the previous owner has passed away and the property is being distributed to the heirs.
- Abandoned properties have been left vacant for a long time and may have fallen into disrepair.
- Neglected properties: poorly maintained by the homeowner and needing repairs or renovations.
- Fire or Natural Disaster: damaged by fire or a natural disaster, such as flooding or a storm, and may require significant repairs.
Can I Sell a Distressed House?
Yes, you can sell a distressed house. Many real estate investors and local homebuyers are specifically looking for distressed properties as they often represent a good opportunity to purchase a property at a discounted price.
When selling a distressed house, a few options are available to you. For instance, cash buyers are often willing to purchase a distressed property as-is and can close the sale quickly. You can list the house as a fixer-upper on the market and market it as a fixer-upper or handyman special. It can attract buyers looking for a bargain and willing to do the repairs themselves.
Real estate investors often specialize in buying distressed properties and flipping them for a profit. They may be willing to purchase the property quickly and at a fair price. If you have the time and resources, you can make the necessary repairs before listing the house on the market. It is important to keep in mind that, depending on the condition of your property, some options may be more viable than others.
What Is the Fastest Way to Sell a Distressed House?
A cash sale is one of the fastest ways to sell a house, as it eliminates contingencies that can slow down the sale process. Cash buyers, such as investors or real estate companies, can close a sale quickly because they do not need to secure financing like a traditional home buyer. There are no delays related to getting a mortgage approved.
Additionally, because cash buyers are often willing to purchase a property as is, there is no need to make repairs or wait for inspections before closing the Sale. It can make the process even faster.
A typical cash sale process can take one to three weeks. It is faster than a traditional home sale, which can take several months from listing to closing. Once an offer is accepted, the cash buyer will typically conduct a quick inspection of the property and then proceed with closing.
Is it Legal to Sell a Distressed House?
Yes, it is legal to sell a distressed house. Many real estate investors and homebuyers are specifically looking for distressed properties as they often represent a good opportunity to purchase a property at a discounted price.
However, it is important to remember that the Sale of distressed property is subject to the same laws and regulations as any other real estate transaction. The seller must legally own the property, and all necessary disclosures and documentation must be provided to the buyer. Any required repairs or renovations must comply with local building codes and regulations.
Get a Fair Cash Offer for Your Distressed House
If you need to sell your distressed house fast but can't find a buyer, let us make an offer. At Home Buyers Ohio, we buy houses as-is in Cleveland, Ohio. We can make a fair cash offer and close in as little as seven to 21 days. Call 440-490-4600 to get a fast cash offer.