4 Reasons Why You Should Hire A Realtor® When Purchasing A Foreclosure

For many buyers, foreclosures present exciting opportunities. 
These opportunities do come with several risks that can cost you enormous amounts of money if precautions are not taken. Most people get excited about the attractive low asking price of the property and fail to overlook complications that it can come with, such as structural problems, extra fees, and the lengthy processing time.
Unless you are experienced in purchasing foreclosures, it can be an overwhelming and complicated process. A Realtor® can guide you through the foreclosure process while making sure you are making a sensible decision. They will make the transaction smoother and make you feel confident that the purchase you made was the best choice.

Want to know more? Contact Our Calgary Realtors

Foreclosures In Canada

The United States has glamourized the purchase of foreclosures because of their low asking prices and quick auction processes. In Canada, foreclosures are rarer than you might think. The process is different from the US, and eye-catching deals are not as common.

Since the selling process is quite different from traditional home-buying, you may run into unnecessary extra costs or problems with the bank, if you do not know what you're doing. To avoid these extra costs, long timelines, and the stress associated with purchasing a foreclosure in Canada, hiring a Realtor® will give you the best chance at finding a foreclosed property that provides good value for money.

If you are interested in purchasing a foreclosure as your new home or as a property investment, The Mel Star Team can help you find the perfect, most valuable home within your budget. Contact our team by calling 1-403-861-9944 or fill out our online contact form.

4 Reasons Why You Should Hire A Realtor® When Purchasing A Foreclosure

A Realtor® Knows The Foreclosure Process

If you are just stepping foot into the foreclosure market, there will be a lot of unknowns and questions about how the process of sale differs from traditional home selling.

Negotiating with a bank is very different from negotiating with an individual. The entire process can be different with each sale, so having a Realtor® who can anticipate the bank's needs will make the transaction much faster. Each bank has its own timelines and procedures, and a Realtor® will help you navigate these nuances to ensure you are making the right decisions. 
Even if you have purchased a foreclosure in the past and think you remember how the process works, it would still be wise to enlist a Realtor®.

They Will Always Keep Your Best Interest In Mind

Banks foreclose on properties because of missed mortgage payments. They want to sell the property as fast as they can to make up for the money not being paid by the previous owners. Banks will then set the rules and the contracts with only their best interest in mind—without regard to the buyer.

Given these contracts are designed to only benefit the bank, hiring a Realtor® to act as a fiduciary to act in your best interest will prevent you from signing an unfair deal that could have extra costs attached. A Realtor® will help navigate you away from any pitfalls so the transaction process is smoother and faster.

A Realtor® Knows The Inspection Process

When a property is foreclosed, neither the bank nor the buyer knows anything about maintenance problems or when any repairs or updates have been made.

Thankfully, a Realtor® with experience in foreclosures can help identify problematic areas to look out for and provide references for reputable home inspectors before purchasing. Sometimes, a bank may pay for maintenance repairs such as mold removal. The average buyer would not know this, and the bank will not always voluntarily reveal this information. 
A professional Realtor® can identify common issues associated with foreclosures and will know when and how to ask the bank to contribute to maintenance repairs.

A Realtor® Knows The Market

Just because a foreclosed home is priced low does not mean that it is a good idea to purchase it. Many potential buyers get excited seeing the price tag associated with foreclosures and forget to consider other factors such as location, floor plan, and the condition of the home.

A Realtor® can provide you with a bird’s eye view of the property and its worth. They can tell you whether it is a good buy from the market’s perspective. Thanks to their insider knowledge, they are also in the loop about upcoming foreclosures, giving you a head start over other interested buyers. 

Contact Our Team Today!

If you are looking at purchasing a foreclosed home, make sure you start the process off right by hiring a Realtor®. A Realtor® can help you make the right purchasing decisions and guide you through the foreclosure purchase process smoothly. 

Our team has over 40 years of experience in Canada’s real estate industry. We know the stress and uncertainty that can come when buying a foreclosed home. We mitigate the risks by offering an all-inclusive, one-stop concierge service for all your home buying needs. 

To find out more, contact us at (403) 861-9944 or fill in our contact form.

FAQs 

Are foreclosures always a good deal?

The bank is trying to sell the home as quickly as they can to make up for the money lost from previous owners not making their mortgage payments. The bank will sell the home for a below-average asking price to attract buyers to purchase the property quickly. Depending on the market and the timing, a foreclosure can be an amazing deal. 

However, a low price tag does not necessarily mean a good buy, as you can still incur renovation and maintenance costs.  

Do all Realtors® know how the foreclosure process works?

There is no special training for Realtors® when it comes to foreclosure properties. This is why it is extremely important to work with a Realtor® who has extensive experience and knowledge with foreclosure properties so you can feel confident that you are getting the best deal possible.

What are some of the common expenses that foreclosure properties have?

Most foreclosures are sold in “as in” conditions and can come with extensive repair and maintenance needs. Some of the common expenses you can expect from purchasing a foreclosure include:

• Lock changes
• Property and land transfer taxes
• Inspection/appraisal
• Interest rates and administration fees
• Renovations
• Cleaning and general maintenance