5 Key Facts About Buying a Foreclosed Home

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This can have many benefits, including:

• Better opportunities for negotiating
• Seller is motivated to achieve a fast sale
• You can typically use regular mortgage financing
• The seller might be more amenable to provide certain concessions

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

Are you considering buying a foreclosed home in Calgary? This can prove to be a complex and often frustrating process. However, our team of Calgary realtors have over 40 years of experience in the industry and whatever your needs, we can help take care of all the details so you can focus on what matters most: finding your dream home and investing in your family’s future.

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Buying a Foreclosed Home vs Other Properties: What’s The Difference?

Buyers are often attracted to the idea of purchasing a foreclosed home in Calgary because of the low price. First time homebuyers may be able to get a bigger house than they otherwise could afford.

However, if you are looking at foreclosure listings in Calgary, you must fully understand the process and appreciate what differentiates a foreclosed home from other properties.

Here are some things you should keep in mind:

1. The seller is the bank: The primary difference between buying a foreclosure and a regularly listed property is that with the former, the seller is the bank. This is important because it will impact many aspects of the selling process. For example, the time frame is much shorter than with a traditional sale, so you’ll need to go into the process with your financing already secured.
2. Cash is usually required: When foreclosed properties are sold at an auction, cash is usually required. This could mean paying for the entire purchase upfront, or it could just be a larger down payment, with the remaining balance to be paid by a certain date.
3. You’ll still need a home inspection: When you buy a foreclosed home, you’re buying it as is. However, you should still get an inspection as this will determine what issues the house may have. The previous owners may have left it in bad condition, or in other cases, an empty home may have invited thieves or vandals.
4. With a foreclosed home, you’ll have to pay for the repairs. When buying a foreclosed home, keep in mind that the bank generally will not pay for repairs or reduce the price to compensate for any issues found during the inspection. So when making your purchase decision, be sure to establish a budget that includes short and long-term repair costs.
5. Working with a real estate agent is important. If you aren’t familiar with the foreclosure process, it’s a good idea to work with a real estate agent who understands the process well. You will also need to get pre-approved and let your lender know you’re focusing on foreclosures.

A foreclosure can look like a big bargain, and in many cases, it can be. However, before purchasing a foreclosed home, it’s important to make a balanced analysis of the risks and opportunities of such a purchase, including the costs of improving such a property.

We Can Help You Get The Home You’ve Always Dreamed Of

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 about our services, 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.

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.