5 Benefits of Buying a Foreclosed Property

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5 Reasons Why You Should Buy a Foreclosure in Calgary

Whether you’re looking to buy a home to live in, rent out for extra income, or flip and sell, you may be tempted to buy a foreclosed home. However, to fully understand if this is a good idea for you, it’s important to have some background knowledge on the pros and cons of buying a foreclosure in Calgary.

Here are 5 reasons why you may want to buy a foreclosed home:

1. You’ll Get a Low Purchase Price

One of the biggest benefits of buying a foreclosed property is snagging a great deal. Lenders are eager to unload these properties and recoup their money, so you may be able to negotiate the property’s price down and pay less than you normally would for a similar house.

2. You Can Make The Most on Seller Concessions

Buyers often incur high closing costs when they purchase a property. If you opt to buy a foreclosed home, you may be able to get the lender to cover your closing costs, or make other financing concessions that make buying the house more affordable.

3. You’ll Have a Chance to Buy a Home That’s Otherwise Out of Reach

When you’re buying a home on a limited budget, foreclosures offer a chance to get into a neighborhood you otherwise couldn’t afford. This is especially beneficial for home buyers who have children and are looking to buy in a specific school district, or those who want the amenities that come with living in a particular area.

4. You’ll Enjoy a High Return on Investment (ROI)

When you’re buying a home, the lower the property price, the higher your return on investment. Since foreclosed homes are cheaper, they have the potential of generating a high ROI. Moreover, when you make renovations or improvements to the property, this will significantly increase the market value of the home.

5. You’ll Get Better Financing

If you are buying your home with a loan, you will have to borrow less money when buying a foreclosed home, since these properties are already below market value. This means that you will pay a lower down payment and lower monthly payments.

In addition, when buying a foreclosed home directly from a bank, the bank might give you better financing deals in order to get rid of the property and you could end up with lower closing costs.

 

Let Us Help You Find Your Dream Home

Are you considering buying a foreclosure in Calgary, but you don’t know where to start? Our team of Calgary real estate agents have decades of experience buying and selling homes, and we can provide you with a one-stop concierge service that makes buying your new home easy and affordable!

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.