8 Things You Should Know Before Buying a Foreclosed Home in Calgary

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

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8 Things to Know if You’re Considering Buying a Foreclosure in Calgary

Have you seen a foreclosed home for sale in Calgary that you are keen on buying? Purchasing a foreclosure can be a huge deal for a buyer because they typically sell for less than the actual market value of the property.

However, buying a foreclosed home can prove to be complex, so it’s important to work with an experienced real estate agent during the process. If this is something you are considering, here are some facts you should know about buying a foreclosure:

1. You’ll need preapproval: Due to the circumstances of the sale, the lender will want proof that you can afford the foreclosed home that is for sale. If a lender loses out once, it only makes sense that they’d want to protect themselves as much as possible the next time around.
2. You may have to pay in full: In some cases, a foreclosed home will go to an auction, where buyers can bid. In such cases, buyers are expected to pay for the house in full - and this doesn’t include the cost of any maintenance, repairs, or renovations.
3. You stand a chance to get a really great deal: Because lenders are so eager to sell foreclosed properties to recoup any losses they’ve incurred, many foreclosed homes sell for far less than the market value. For you as a buyer, this could mean a great deal on a home that may have initially been out of your price range.
4. You may not be able to negotiate: Unlike conventional home sales, where as a buyer you could negotiate the price of any repairs required, banks are far less eager to negotiate on the price of a foreclosed home.
5. What you see is what you get: When you buy a foreclosed home, what you see is what you get. This means that if a foreclosed home is damaged or requires repairs, you will be responsible for paying for this.
6. Don’t skip the home inspection: You should never skip out on a home inspection when it comes to a foreclosed property. Consider things like pests, mold, asbestos, and any structural problems when looking over the property.
7. You could enjoy a shorter closing process: If the foreclosed home for sale comes off pretty clean - both financially and structurally - you may be able to enjoy a much shorter closing process than for a conventional home sale.
8. You stand to make a lot off your investment in the long run: If you do find a foreclosed home at a great price, and you don’t have to spend too much time or money to make it meet your standards, you could be looking at a great investment. Foreclosed homes tend to accrue value very quickly, so you may be purchasing a home with some built-in equity.

5 BENEFITS OF BUYING A FORECLOSURE IN CALGARY

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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 in the market, 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.