A distressed house is one that has problems most buyers will not touch.
Maybe the roof is leaking. Maybe the foundation is cracked. Maybe it has water damage, mold, or years of neglect. It might have code violations from the city. Or a fire damaged part of it. Or the taxes have not been paid in years.
These houses scare off regular buyers. They scare off their agents too.
Why Can’t Regular Buyers Buy a Distressed House?
Most retail buyers want a house they can move into. They want clean walls and working plumbing. They want a house that looks good online.
More importantly, regular buyers use loans to buy houses. Their lenders order an inspection and an appraisal. If the house has big problems, the loan gets denied.
This is why distressed houses sit on the market for months. Agents list them and nothing happens. Buyers walk through and walk right out.
That is okay. A cash buyer looks at the same house differently.
How Does a Cash Buyer Evaluate a Distressed House?
We do not use a loan. We do not need the house to appraise. We do not need it to pass an inspection for a lender.
We look at what the house is worth fixed up. We subtract the cost of repairs. We subtract our closing costs. We subtract a fair profit for the risk. What is left is your offer.
It is not a low offer. It is a real offer based on real math.
We have bought houses with collapsed floors. We have bought houses with squatters in them. We have bought houses the city wanted to condemn.
If you are dealing with something like this, you can learn more about selling a distressed property as-is without making repairs.
What If the House Is Also Heading Toward Foreclosure?
Some distressed houses are heading toward foreclosure at the same time. The taxes are unpaid. The mortgage is behind. The house is falling apart at the same time.
If that sounds like your situation, read about what to do when foreclosure is closing in on your home.
Do I Need to Fix or Clean Anything Before Selling?
No. You do not have to fix the house before you sell it. You do not have to clean it out. You do not have to pay a commission.
We buy it the way it sits.
You can reach out and tell me about your house. I will look at it and give you a real number. No pressure, no obligation.
Questions Answered in This Article
What is a distressed house?
A distressed house has problems most buyers won't touch: leaking roof, cracked foundation, water damage, mold, code violations, fire damage, or unpaid taxes. These houses scare off regular buyers and their agents because they can't pass a lender's inspection or appraisal.
How do cash buyers price a distressed house?
We look at what the house is worth fixed up, subtract the cost of repairs, subtract closing costs, and subtract a fair profit for the risk. What's left is your offer. It's not a low offer. It's a real offer based on real math.
Can I sell a distressed house without fixing it first?
Yes. You don't have to fix the house, clean it out, or pay a commission. A cash buyer purchases it as-is, the way it sits. No repairs, no inspection contingency, no appraisal requirement.