The successful sale of most properties is made through the open market channel with an Estate agent; thus, the buyer would require a mortgage and a survey. Typically, when the survey is passed, it is usually found suitable for a mortgage. However, when minor issues are spotted, the survey would downvalue the property or warrant the buyer to downgrade their offer. In some other cases, the seller might be required to carry out the improvement and repairs.
Sales transaction to a cash buyer completely removes the risk of a mortgage surveyor reducing the property value, or the seller must pay for repairs and maintenance.
Buying a problem property is often regarded as a way for both seller and investor to cash in on the property. Nevertheless, the potential financial reward does not come without some level of hard work.
Problem properties typically have some common issues. Additionally, there are some common challenges you might encounter when trying to purchase one. While problem properties can serve as a great deal of investment as a fixer-upper, they typically come with baggage to resell or live in.
Some common issues with problem properties
Before you shop in the foreclosure market, bear in mind that these properties were surrendered by owners who could no longer afford their mortgage payments. Among these circumstances, the property has frequently been neglected—after all, if the occupant can’t make the payments, they’re usually getting behind on routine maintenance as well.
Furthermore, some people who are pushed into foreclosure are enraged by their plight and take their anger out on their property before the bank repossesses it. This often entails removing appliances and furniture, and in some cases, outright vandalism. Foreclosures are frequently abandoned after the owners have left, inviting illegal activity.
Maintenance and Condition
Maintenance and condition could pose a significant issue in problem properties due to the circumstances under which the previous owner moved out and the length of time the house stayed unoccupied. Some major areas of concerns include the following;
- Lack of cleanliness: bank-owned properties are sometimes dirty because of the length of stay unoccupied.
- Bad renovation: The previous owner might have carried out changes in the home without getting the proper permits.
- No electricity: Because of lack of occupancy, the bank might have intentionally cut out the power supply.
- Water damage: severe water damage can be caused by a leak under the kitchen sink, a burst pipe or a roof leak, leading to significant water damage.
Vandalism and Neglect
Damaging is not hard to find in most problem homes, and the previous owner or vandals could cause these damages. Here are some common causes of vandalism:
- Random vandalism: When a property sits empty for an extended period, mainly if it is in a modest crime area, current owners can encounter vandalism, broken windows, and other destruction.
- Owner Vandalism: Broken windows are popular in Foreclosure properties for a variety of reasons. As previously mentioned, vandalism may be a contributing factor. Besides, if banks lock out owners when taking custody of property, the former owner can smash a window or door to reclaim belongings. Previous owners can also purposefully cause harm to the detriment of the bank by drilling holes in walls or ripping off baseboards and crown moulding.
- Removal of valuable items: To seek retribution on the bank and make an extra bit of cash, the previous homeowner can remove valuable items such as appliances, fixtures, doors, copper pipes, and so on. More so, Thieves may take anything that the homeowner does not take.
Where we come in
Do you want to sell your property because the maintenance is too costly, time-consuming, or merely inefficient? Is your home costing you more than it is worth? Has a sale dropped through because of the state of your home? If you said yes, you’ve come to the correct location.
We are specialists in buying unmarketable problem properties of all sorts – if your house, condo, or bungalow has any problems, we guarantee you a cash bid regardless of the state.
Selling issue assets by conventional estate agents or on your own is exceedingly time-consuming and complex, if not impossible.
How different are we?
We are your one-stop legitimate cash buyers who buy all forms of real estate with our own money. Contact us to explore your bestselling options; you will receive a free, no-obligation cash offer for your property. We will provide you with personalized guidance on selling your property at the highest possible price and walk you through every step of the transaction.