Buying A Flipped Foreclosure? Beware Of Bad Flips!

Buying A Flipped Foreclosure? Beware Of Bad Flips!

Flipping foreclosures is a popular option for people who are looking for a renovation project or to invest in the Calgary real estate market. Flipped foreclosures can give homes a second life and can make homeowners very happy that they can enjoy the benefits of a new renovation without having to pay for a brand-new home. But buyers need to be critical when considering purchasing a renovated foreclosure, as there can be hidden issues with these homes. Before you commit to purchasing a flipped foreclosure, take these steps to ensure it is a good quality home that has all of the necessary renovation permits and that everything is legally sound.

How To Know Which Flipped Foreclosures Are Good Purchases

Review The Permits
Proper documentation is important when purchasing any home, but it is especially vital for foreclosures. These homes have the potential to carry outstanding fees, but the more common issue you need to look out for is undocumented work on the home. If there are renovations or additions to the home and there aren’t any permits or paperwork, the home is likely not up to code.

Look For Issues During A Viewing
It’s very important that before you make offers or set your heart on a flipped foreclosure that you look over the whole house with a critical eye. You will want to Watch Out For These Red Flags When Buying A Foreclosure In Calgary to make sure that the person who flipped the home didn’t ignore important structural or functional problems in the home. It can be tempting to look at a home and get caught up in the floor plan or features, but when you go for a viewing you need to be looking for anything that might be indicative of problems in the home. Take a checklist with you to ensure you’ve looked over any potential problem areas.

Get A Home Inspection
Although you can look at the home yourself for any clear signs of the foreclosure’s quality, it’s no match for the expert eye of a home inspector. A professional home inspection will ensure that you are getting a good quality home that doesn’t have any hidden problems. A home inspector will be able to tell you if the foreclosure flipper took any shortcuts and they will ensure the home is safe and functional with structural integrity. For more details, read The Benefits Of A Home Inspection When Buying A Foreclosure.

Work With A Realtor® Experienced With Foreclosures
Foreclosure sales are different from regular home purchases. Since the home has already been purchased as a foreclosure and then flipped, the purchasing process will not be as complex as foreclosure sales normally are, but a Realtor® who is experienced with foreclosures will be able to look for any complications and will know what conditions to add to the contract. They will also be able to tell you if the home is a good deal and what potential issues may be specific to a flipped foreclosure in the Calgary real estate market.

 

Find Favourable Flipped Foreclosures In Calgary

When you’re interested in a foreclosure, either before or after renovations, you should consult with a Calgary Realtor® who is experienced with foreclosures before you make a decision. You don’t want to purchase a home with any legal or structural problems. A Calgary Realtor® can also help you find a good deal and write a contract that protects your investment. The Mel Star team has worked extensively with Calgary foreclosures and knows what to look for and how the foreclosure market works. If you find a flipped foreclosure in Calgary or if you are searching for a new home, contact the Mel Star team at 1-403-861-9944 or fill out the online contact form to find your next home.

FAQ

A foreclosure property is a bank-owned home that is for sale. The previous owner was unable to meet their mortgage payments, therefore the bank repossessed the home and is selling it to recuperate the money still owed against the mortgage. To learn more about foreclosures and how to earn a profit from them, read Do Calgary Real Estate Investors Need To Hire a Foreclosure Specialist?

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A good Realtor® will represent you during the home buying process. A real estate agent should do the following for you when buying a home:

  • Book showings
  • Provide you with search tools or search for properties on your behalf
  • Represent you well in possible multiple offer scenarios
  • Keep a calm head during negotiations
  • Diligently navigate contracts and closing

A Star Team Working For You

A Star Team Working For You

The Mel Star team combines experience, insight, influence, connections, and access to the most cutting-edge marketing technologies to deliver results to buyers and sellers in Calgary’s Real Estates market. Our award-winning team will guide you through the process of buying or selling with smart strategies, skilled negotiations, and a customer-focused approach. Connect with us today to begin your journey to a successful Real Estate close. Call us at 1-403-861-9944.

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