The current real estate climate is, for lack of a better word, difficult. Despite record-low interest and mortgage rates, strict lending standards and higher down payments have made it much more challenging for people to buy a home. It’s no surprise, then, that July saw a major slump in existing home sales. In fact, most industry experts and analysts knew that there would be a mild recovery in sales for August, but they were shocked to see just how big of a jump there was: between July and August, there was nearly a 19% rise in existing home sales.

Many industry analysts feel that this is explained by one key factor in the current real estate market: investors. In the month of August alone, investors accounted for 22% of purchase activity. As an investor, there are several reasons you should purchase REO and foreclosure properties in order to bolster your income. As your Wilmington real estate agent, I consider it part of my job to guide Delaware’s investors in the right direction by showing them some of the best bank-owned and foreclosure properties on the Wilmington real estate market. Here are a few reasons distressed properties are desirable for investors:

The price is right. The low cost of REO and foreclosure properties make them attractive investment options. You can obtain property without breaking the bank, with the goal of seeing a sizeable return on investment. The key is to find a distressed home with potential and see what you can do with it from the get-go. The more potential you see, the easier it will be for you to profit from your investment.

Renovations greatly boost home value. Many distressed properties haven’t been maintained, aren’t up to code, or have a variety of maintenance issues. As an investor, you have the power to address these issues right away. You can make the appropriate fixes to the property, as well as give it the upgrades that will make it attractive to a potential homebuyer. The more upgraded and maintained the property, the easier it will be to sell that home for a profit. It will take investment and hard work, but the return you get will be worthwhile.

The current market climate is perfect for investors. With the influx of foreclosures in the national real estate market, it’s not just dilapidated or run-down properties that are getting foreclosed-on. In the current market, all types of homes are going through foreclosure. You can obtain a really beautiful piece of property for a low price and sell it for a sizable profit. Take advantage of the options of distressed properties available on the Wilmington real estate market! It’s a prime time to be an investor; you just need to look for the right properties to invest in.

As a well-rounded Wilmington real estate agent, I don’t just work with Delaware’s home buyers and sellers. I also work with local investors to help them find the right distressed property to maximize their profit in Wilmington, DE. If you want to see some distressed properties on the Wilmington real estate market, don’t hesitate to contact me! I’d love to help you find your next big investment.

Katina Geralis
Wilmington, DE Real Estate Expert
NextRE Team
Wilmington Real Estate
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