5 Things to Do Before Buying a Bank Foreclosure in Calgary

Are you thinking about buying a foreclosed home in Calgary? Here are five factors you must consider before you do.

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Whether you are looking for a home to live in, to flip and sell, or to rent out for extra income, you might be considering purchasing a foreclosed home. For many Calgarians, this could be an excellent opportunity as buying a foreclosed home offers many benefits, including: 

• Lower purchase price
• Chance to buy a home that is otherwise out of reach
• High return on investment
• You can get better financing

Considering Buying a Foreclosed Home in Calgary? We Can Help! 

At Mel Star, our team of Calgary real estate agents hedge the risk associated with buying a foreclosed home, providing you with expert advice every step of the way. We have access to many foreclosure listings and our real estate agents have decades of experience to make your home buying experience as seamless as possible. 

Want to know more? 

CONTACT OUR CALGARY REALTORS

Should You Buy a Home in Foreclosure? 

No matter where you live, if you’ve spent time browsing for homes for sale in your area, you’ve likely come across properties in foreclosure. Foreclosed homes can prove to be a great deal for buyers, because they are competitively priced to sell. But there are also risks involved. 

Figuring out whether or not you should buy a foreclosed home requires careful research about what you are getting into and what you should expect out of the process. 

Here are some things to consider to ensure you make a smart purchase: 

1. You Should Go See the House in Person 

Even if the deal on a foreclosed home seems too good to pass up, you must always go see it in person so that you can get a good idea about the condition of the house. You may have to budget for aesthetic fixes, or there might be some major repairs — either way, you want to know about these things before you buy the home, not after. 

2. Get a Good Feel of the Neighbourhood

Another reason to go see the home is to get a good feel for the neighbourhood and immediate surrounding area. Some areas could have multiple foreclosed homes, which means a potentially riskier investment and a general devaluing of the neighbourhood.

MOST ESSENTIAL QUESTIONS TO ASK BEFORE BUYING A FORECLOSURE 

 

3. You Are Responsible for Repair Work 

When you buy a home in foreclosure, you are buying it directly from the bank, and unlike home sellers, banks don’t offer up incentives and contingencies. Most often, the home will be sold ‘as is’, meaning that you get what you see, even if it’s a leaking roof or damaged floors. 

This isn’t to say that all foreclosed homes require expensive and extensive repairs. You might find a home whose previous owners took great care of, but if your home inspection does turn up some issues, make sure you have the budget to cover them. 

4. You’ll Have Room to Negotiate Some Things

Banks are very motivated sellers, which is why foreclosed homes are often priced under the market value. Take advantage of this eagerness to sell and see if you can negotiate some sale factors in your favour. For example, ask about: 

• Lowering the sale price
• Reducing the downpayment or escrow requirement
• Shortening or extending your closing period 

Remember, the bank has no sentimental attachment to the property and are eager to sell — so when you’re dealing with a seller who just wants to get the home off their hands, you could have some wiggle room when it comes to the nitty gritty of your deal. 

HOW TO GET THE BEST DEAL WHEN BUYING A FORECLOSED HOME

 

5. Get Your Financing in Order As Soon As Possible 

Remember, every day a foreclosed home sits unpurchased is a day the bank loses money, and while that can put power in the buyer’s hands, it’s still wise to do whatever you can to get the deal moving along as quickly as possible. 

A good way to do this is to get your financing in order before you even make an offer to buy a foreclosed home. That way, you can be as competitive as possible when you do reach out. In addition, most banks will require pre-approval before engaging with your offer at all. 

We Can Help You Find Your Dream Home! 

Finding a home can be a complex and 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 or fill in our online contact form.