Are Distressed Homes Worth It?

Are Distressed Homes Worth It?

That would depend on more than one "it" factor. 

Before you fall in love with that low, low price, a savvy buyer of a "distressed home" should follow the same guidelines as a conventional buyer.  Location, location, location is still a tried and true mantra when investing in a home.  You can change the house but you can't change the location always rings true. 

 One interesting tip, whether you are buying any home, distressed or not: Visit your potential home at various times of the day.  Just as light changes the tones of paint inside a home, you may find that the neighborhood experiences different "tones" at different times of the day.  Train, airport, or commuter noise can be a post/purchase surprise if you had been shown the home during off hours.  Is there a noisy day-care or school in the neighborhood? Do the neighbors have dogs that bark at night but you never noticed as you were shown the home at 9:00 a.m.?  One buyer lamented that his Realtor® took him to see a property from one direction.  When the buyer took his own vehicle back to that same property he traveled the opposite way and there was a junk yard across the road that could only be seen from a certain vantage point - the Realtor® had failed to disclose the "minor" problem.  It was a deal breaker.

Remember the movie Money Pit?  It was a very funny movie, but not if that house

Were really yours.  If you have the skill sets to tackle a major or minor remodel, and by skill sets I mean more than one episode of HGTV, by all means, consider a fixer-upper!  If your dream house is the worst house on the block, you can add real value and have that great house that others passed by because they couldn't see past the 1960's wallpaper or avocado green shag carpeting.  If the problems are greater than what you can handle, make sure to get some professional estimates of the cost to renovate.

So my professional advice... if the location is right... is to buy that distressed property!  You'll not only improve a neighborhood but that house will thank you for bringing it back to life!   

Courtney Donato-Griffiths can list your home or show you the perfect house in Potomac, Gaithersburg, Rockville, Kensington, Bethesda, or other Montgomery County locations and is ready to discuss all the scenarios of the new home buyer's credit and current interest rates with you.  Whether you are buying a Montgomery County home or selling one, Courtney is your local Montgomery County specialist.