What to Know When Purchasing a Foreclosure

Real estate concept

When you’re buying a home, it can be tempting to look at foreclosure properties. They are often priced lower and you can find some great homes in areas you may not be able to afford otherwise. However, there are some things you need to know before you buy a foreclosure. 

 

You might not be getting the steal of a deal you think you are.

While the perception around buying a foreclosure has always been that you are getting a better deal, that doesn’t necessarily hold true anymore. 

 

Foreclosures typically occur when the lender (the bank) repossesses a home after the previous owners fail to pay their mortgage. Foreclosures can also occur as a result of a court ruling. In both scenarios, banks and the court system have an obligation to sell foreclosed properties for a fair market value. The market value of the home is typically determined by a realtor and a property appraiser. 

 

From my personal experience, the appraised value usually ends up being what the property is listed for, but it doesn’t always coincide with market value, meaning the property can be over or under-valued. 

 

At the moment, however, the current market could work in your favour. Read more about taking advantage of the spring housing market in my most recent blog post

Real estate concept

 

Bank sale vs Court-ordered

As mentioned, foreclosures can be a result of the bank’s decision or a court ruling, each of which will shape your experience when purchasing the property. 

 

Bank sales usually go a bit faster, as the bank is eager to sell the property and recuperate costs. Negotiations are handled by a bank employee using certain guidelines, meaning that it usually takes at most a few days to hear back with counteroffers. That doesn’t mean there isn’t the potential for delays, in some circumstances, offers can take longer due to legal red tape. 

 

Court-ordered sales are different. In the case of judicial foreclosures, a court date is set and a judge decides on the best price for the property from all of the offers submitted. This means your timeline is decided by the courts, and you may not even get to purchase the property. 

 

Be prepared to do a home inspection

When you are buying a home, you can typically make a property inspection a condition of the sale. However, foreclosures can often require that any offer submitted does not have conditions.  This means that you may be required to get an inspection, which can cost about $650, prior to even submitting an offer. Inspections will also give you a better idea of what the potential costs of fixing up the home may be. 

 

Additionally, just because it’s a foreclosure property doesn’t mean there won’t be competition. Paying for an inspection can be risky, as there could be others doing the same thing in preparation to purchasing the property. 

 

What you see is what you get, literally

With other properties, you may be able to negotiate for certain terms like a professional cleaning or items to be removed from the property like an old playset. Foreclosure properties are sold as-is, where is at the time of possession, leaving no room for these types of negotiations. If you by chance find a foreclosed property that is considered to be a steal deal, be prepared for that property to need (potentially costly) renovations. 

 

Want some renovation suggestions? I’ve got them for you here.

 

Additionally, if a seller or a tenant is living in the property prior to your possession date, there is always the risk that the property may not be in the same state that it was when you originally viewed or inspected the property. Unfortunately with foreclosure properties, you are responsible for whatever damages may have occurred, or whatever items are left on the property.

 

Overall, foreclosure properties can be an interesting option when purchasing a home. It is critical to have an experienced and knowledgeable realtor to walk you through the process and ensure that the property is right for you. 

 

Due to the many extra steps and potential risks involved with the purchase of foreclosure properties I am hesitant to recommend them for first-time home buyers. However, they can be great properties for investors to add to their portfolios, or for someone who isn’t afraid to do some (or a lot) of home renovations. 

 

Looking into foreclosure properties? Let me help you with that!

As one of Edmonton’s top REALTORS, I have the experience and knowledge necessary to guide you through the process of purchasing a foreclosure property.  Contact Jeneen by phone: (780) 904-4240 or by email: jeneens@remax.net

Hi, I’m Jeneen Marchant!

I’m here to help you find you during your next Real Estate transaction. Home ownership is a beautiful thing and I love seeing my buyers happily opening the door to their new home on possession day. I also get great satisfaction from helping my sellers get the best price possible for their home when it is time to move on to another property.

What to Expect from the Real Estate Market in Edmonton 2019

Houses For Sale Edmonton

The real estate market is continuously changing which makes it incredibly difficult to keep up with the ins and outs.

If you’re not a real estate agent or are not directly linked to the industry, it can be extremely hard to know what to expect from the Edmonton Real Estate market.

For most, the opportunity to buy or sell property comes around once in every five to ten years, which, in real estate years, is basically an eternity! So, it’s important to do market research before buying or selling your home (even if you’ve already bought or sold a home previously).

Fortunately, I’ve put together a list of things that you can expect from the 2019 real estate market!

Buyers Choice

  • If you are looking to buy a home in the near future, 2019 is the perfect year to bite the bullet! Currently, there are a record high number of homes for sale in Alberta, which means that you can snag an amazing property for a great price.
  • On the flip side, if you are planning to sell in 2019 — don’t fret! In a buyers market, making your home stand out is more important than ever. Working with an experienced real estate agent who knows the ins and outs of the real estate market can help you sell your home quickly, and for a competitive price!

Steady Waters

  • In 2019, the Canadian Real Estate Association expects that average home prices will stay stable in Edmonton. A stable market means that homebuyers and sellers won’t have to deal with any bewildering pricing surprises when buying or selling property this year.
  • Currently, according to the REALTORS® Association of Edmonton, the average selling price for Houses For Sale Edmonton is approximately $370,000. However, this price shifts slightly depending on whether you are buying or selling a single family home, condo, or row house/duplex.

I hope this blog post helps you understand what to expect of the 2019 Edmonton housing market. Have any more questions about buying or selling your home in 2019? I’d love to chat with you!

If you’re looking for an experienced realtor to help you buy or sell a home in the Edmonton area, give me a call!

Jeneen Marchant with RE/MAX Real Estate

780-904-4240  or email at jeneens@remax.net to get started.

The Top 5 reasons Why You Should Work With a Realtor When Buying or Selling Property

In today’s economy, people are looking to cut costs wherever they can. With so much information readily available online, individuals often think that they are equipped to buy or sell property without the help of a realtor.

But what many people don’t realize is that working with a realtor not only saves you time and money, but also comes with a ton of added benefits!

Before skipping out on a realtor, take a look at this list of the top 5 reasons you should work with one:

  1. Years of Experience

  • Most people don’t have a lot of experience in buying and selling property, which can sometimes make for delays and costly mistakes.
  • That’s where working with a realtor can come in handy.
  • Experienced realtors have been involved in the buying and selling of hundreds of properties, and because of this, know the entire processes inside and out.
  • They are familiar with all of the intricate forms, contracts, and reports so that you don’t have to be.
  • When you work with a realtor, they will guide you through every procedure and make sure that no costly oversights or errors are made.
  1. Connections in the Industry

  • When buying or selling a property, you may be looking to work with other individuals in the real estate business like home stagers, inspectors, photographers, etc.
  • Luckily for you — a relators network spans far and wide.
  • A realtor is like a Disney World FastPass that gives you direct access to other talented individuals in the industry.
  • They are associated with the best and brightest in the real estate business, and will gladly help you get in contact with them.
  1. Killer Negotiation Skills

  • Sit back and sip a cold one while your realtor deals with the offers and counter-offers from the other side.
  • Without the emotional connection to property that most buyers and sellers experience, realtors are able to focus on negotiating with the other side to get you the best deal possible.
  • Experienced realtors have exceptional negotiation skills and will always craft messages with your best interests in mind.
  1. Market Knowledge

  • No one has as much knowledge of the Edmonton housing market than local Edmonton-based realtors do.
  • It’s their job to stay up to date with the local market prices so that you don’t have to.
  • Realtors know everything there is to know about the local market, as well as the current market trends. So, when you hire a realtor to help you with the process of buying or selling property, you won’t have to spend your time researching the market.
  1. Easy access to sellers and buyers

  • When you’re looking to purchase property, a realtor can help you gain access to tons of listings that the general public wouldn’t have access to.
  • Most realtors have access to extensive databases that allow them to see the best properties on the market.
  • People also associate realtors with professionalism, so sellers are much more likely to trust buyers on their property when a realtor accompanies them.
  • If you are looking to sell property, realtors can bring in more individuals to view your listing because of their connections with others in the real estate industry.

Whether you are looking for a new place to call home, or are selling a place you’ve outgrown, it’s beneficial to have a realtor by your side to help you through the process.

Remember — at the end of the day it’s a realtor’s job to make the transaction as easy as possible for you. Not only will a realtor save you time and money, but they will also bring tons of added benefits and resources along with them.

Are you looking for a realtor to assist you in buying or selling property in the Edmonton area? Jeneen Marchant with RE/MAX Real Estate would be happy to help! Send an email at jeneens@remax.net to get started.