4 Precautionary Steps to Take Before Buying a Foreclosed Home

Are you looking at foreclosure listings in Calgary? Before going ahead with this decision, here are 4 precautionary steps you must take before purchasing a foreclosed home in Calgary.

While sales of foreclosed homes may not happen frequently in Canada, there are times when it does happen and there are certain ways that you can buy a foreclosed property, which involves a different procedure than a traditional mortgage.

If you have started looking at foreclosure listings in Calgary, it’s important to understand the inherent benefits involved in buying a foreclosed home:

  • The lender is eager to recuperate their loss and will want to sell the property quickly.
  • They may sell it at a lower price than it was initially. If you buy the house at auction, you may even get a lower price.
  • Any backdated taxes or outstanding mortgage payments remaining on the property will be expunged, as these factors might make it harder for the lender to resell the home.
  • This option can be beneficial if you are a landlord who wants to buy and fix up cheaper properties and rent them out.
  • If you buy the home at a cheaper price, you can use the money you’ve saved to make home improvement, thereby increasing the property value.

We Can Help You Find Your Dream Home at a Great Price

Are you thinking about buying a foreclosed home in Calgary? This can often prove to be a complex process and our team at Re/Max Calgary understand that there is a lot more involved in purchasing a foreclosed home than paperwork and showings. We will guide you through the process with our expert counsel and real estate concierge service to help you manage all the logistics.

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Precautionary Measures to Take Before Buying a Foreclosed Home

Buying a foreclosed home can have many benefits, but there are also some risks and drawbacks associated with this decision. Because buying a foreclosed property is more complicated and risky than your average home purchase, you must be even more prepared when you apply for your new mortgage.

Some precautionary steps to take include:

1. Hire a Realtor

Since buying a foreclosed home is more complex, working with a professional realtor during the process is more necessary than ever. Such a professional can help you find the right property, and they can also guide and facilitate you through the whole process.

There are many different steps you’ll need to go through when buying a foreclosed home, including an inspection and a court date and an experienced realtor can ensure the entire process goes smoothly.

2. Get Professional Advice

There are many potential costs and risks involved in buying a foreclosed home, so before you do, make sure to seek the counsel of both a financial and real estate professional advisor. They can help you determine if the benefits of buying the house outweigh those of a normal one. If not, it might be better to avoid the purchase altogether.

3. Get The Property Inspected and Appraised

One of the best ways to make sure that you’re getting a good deal is by having the foreclosed property inspected and appraised for its value. While your lender might provide a similar inspection and appraisal, it might be better for you to pay for your own. This will allow you to confirm that you aren’t buying a property that will never reach its full potential.

4. Create a Budget

Before you buy a foreclosed home, consider the costs involved with buying it. Remember, a foreclosed property might need some work before it’s safe to live in. Some of the additional costs you may want to include in your budget are:

  • Utilities
  • Changing the locks
  • Cleaning and general maintenance
  • Renovations
  • Property and land transfer taxes
  • Landscaping
  • Appliances and furniture
  • Any titles or permits required

If you can’t afford these costs (as well as the payments), then it’s best to hold off until you can find a more suitable property.

Call Today

Finding a home can be a complex and a frustrating experience, but our team of professional realtors are on hand to make the process as easy and simple as possible.

To find out more, contact us at (403) 284-6333, fill in our contact form or visit in person at 206-2411 4 St NW, Calgary, AB T2M 2Z8.


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