Distressed properties - Here's what you need to know
A distressed property can be deemed as an absolute nightmare for any homeowner, yet for buyers, these types of properties can be seen as a bargain or a quick investment opportunity. Homeowners in distress are often assisted by banks to sell these distressed properties voluntarily at a much better price than allowing the property to be sold on auction.
In most instances, a distressed property exists as a result of a homeowner who has been unable to keep up with the bond payments for the property. Distressed properties are commonly sold on or just below the bank's valuation price, depending on the location and the current state of the property.
"As a result of the prolonged economic downturn in South Africa, many homeowners are finding themselves in financial difficulty. This can be attributed to many economic factors such as companies downsizing or closing, which have led to a significant number of retrenchments and job losses." highlights Gerhard Kotze, Managing Director of RealNet Holdings.
Kotze advises homeowners: "The quicker you can come to terms with your current financial situation and take action, the better. Contact a RealNet Property Professional to assist you with the initial request to be considered by the bank's distressed programme. They are equipped to guide you through the process of enrolling into your specific bank's Assisted Sales program. Our Property Professionals will aim to sell your property for the best possible market-related price. This also means that your credit record remains unblemished."
When considering the option to purchase a distressed property, it will be wise for buyers to set a purchasing budget. In most cases, the property may need additional renovations, therefore further provisions should be set aside for repairs or improvements.
As soon as an offer is accepted by the seller and approved the Bank, the Bank's nominated transferring attorney will assist all parties and ensure a smooth transfer process. The buyers may occupy the property on successful registration.
If you are a distressed homeowner, kindly contact one of our friendly agents at RealNet Kuils River today for more advice. Alternatively, complete your details on the RealRescue form on www.realnet.co.za and a representative will be in touch.