Everyone likes a discount but in the world of real estate discounts have become less common. Home prices have risen sharply in the past year but distressed sales continue to be available with significant write-offs.
The catch is that distressed homes — foreclosures, short sales and REOs — are sometimes not in pristine condition. That’s a kind way of saying that some distressed properties need a lot of tender loving care as well as paint, updates and repairs. The general “rule” is the worse the condition of the property the bigger the discount, a rule which can mean huge savings for those who purchase with FHA 203(k) financing.