4 Steps to Take to Successfully Invest in a Foreclosed Home

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If you want to invest in a property, buying a foreclosure can prove to be a great deal. However, buying such a home is not without risk, so it’s important to fully understand the process. One of the best ways to ensure you are getting great value for your new home is by working with a Calgary realtor. They can help you: 

• Negotiate with the bank to make the transaction smoother and easier 
• Avoid any pitfalls and protect your best interests 
• Identify any problem areas with the home and determine if this is the right deal for you

Looking to Invest in a Foreclosure? Our Calgary Realtors Can Help Make the Process as Smooth and Easy as Possible 

If you are looking to invest in a foreclosed home in Calgary, our team of leading realtors can provide you with the expert advice you need. We have access to many foreclosure listings and decades of experience in bank foreclosures and judicial sales to make your home-buying experience as seamless as possible. 

Want to know more? Contact Our Calgary Realtors

4 Steps to Take to Successfully Invest in a Foreclosed Home

If you are ready to invest in some real estate, you may be considering purchasing a foreclosure. Because foreclosed homes are often listed at lower prices, investing in such a property can make it more likely that you'll enjoy a good return on investment. However, to ensure a successful investment, there are some steps you should take before purchasing a foreclosed home. This includes: 

1. Study and Understand the Market 

In a lot of cases, a foreclosed home will be sold below market value. By learning as much as you can about the real estate market in your location of interest, you can be sure that you are buying the property at a great value. This is important because the difference between the purchase price and the actual market price of the house is a big determining factor in the amount of profit you will make from your investment. 

2. Secure Financing 

It is advisable that you get pre-approved for a loan before purchasing a foreclosed home. Make sure to check with your mortgage lender to see how much you can borrow and ensure that you have the 20 percent downpayment that is required to buy the home. This will put you in a strong financial position before making your investment. 

3. Get a Home Inspection 

One of the things you should never skip when investing in a foreclosed property is the home inspection. This will bring to light any issues with the property and help you estimate the cost of renovations. If this cost fits into your budget, then you may want to consider making an offer on the home. However, if it doesn't, you should move onto the next foreclosure on your list. 

4. Work With a Real Estate Agent 

Working with a knowledgeable real estate agent will ensure that your foreclosure investment is highly profitable. This is especially true for those who are buying a foreclosed home for the first time. The process is complicated and it can be risky to work alone if you don't have enough experience. 

If you are thinking about buying a foreclosure, remember that the main aim of the bank is to recover the money it lost from the house. This means that often, banks will set up certain conditions and contracts that are designed to protect them, with no benefit to you. 

The best way you can protect yourself and ensure you get the most out of your investment is by working with an agent. Such a professional can help you navigate the transaction and avoid any possible pitfalls. 
 

Key Takeaways 

While purchasing a piece of real estate can be very exciting, it is crucial to take a step back to calculate the risk of an investment before setting your heart or wallet on anything. 

• Plan and secure your financing before you take the plunge, don’t get invested in a home without ensuring you can afford it. 
• Don’t be oversold by knowing the market and resale value of your investment. 
• Check for skeletons in the closet: No matter how great a deal a foreclosed property may seem, there may be reasons for the foreclosing you may not be aware of. Make sure to factor a home inspection into your budget or pass. 
• Get a realtor on your team: While you might be an excellent self-starter, it would take years of trial and error (and tragic investments) to learn all the industry tips and tricks of an experienced realtor. Save yourself from a bad investment and hire a second, well-trained pair of eyes to help you gauge your investment. 

Before buying a bank-owned foreclosed home, you should strongly consider working with a real estate broker who has the right experience to guide you throughout the entire process.

Contact Our Calgary Realtors 

Purchasing a foreclosed home can be an excellent investment opportunity. However, it can also be a complex and frustrating experience. Luckily, our expert realtors are on hand to make the process as easy and simple as possible for you. To find out more, contact us at (403) 284-6333 or fill in our contact form.