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.

These Tips May Speed Up Your Home Sale

Houses For Sale Edmonton

In a challenging real estate market, you need to have a solid plan for appealing to prospective buyers.  Investing in ways to boost the salability of your home, advertising your property effectively, and maintaining the condition of your property will assist you in speeding up the sale of your home.

By following these highly effective tips, you can decrease the amount of time needed to sell your home and generate the kind of profit you want.

Are you trying to sell your property and want the process to go faster?

There are many ways in which homeowners can increase the value of their properties, appeal to prospective buyers, and make the process of selling a home go more smoothly. Using techniques to enhance a property and bring in more potential buyers can be highly beneficial, especially in Edmonton Real Estate Listings market.
One of the most important areas to consider when selling your home are its condition and appearance. Although some buyers may be interested in properties that are ‘fixer-uppers’ or that can be remodeled to suit their preferences, most prospective homeowners are interested in properties that are updated and move in ready.

Edmonton Real Estate

Many people, especially those with demanding careers or families, do not have the time or the resources to spend on extensive remodeling projects. Because of this, it is important to make sure that your home has updated features, including appliances, cabinets, and flooring. Investing in these features also has the potential to increase the value of your home and make it stand out to prospective buyers. However, we can set up a meeting to see if this investment is worth it for the sale of your home, or whether we should just price the property more accordingly. It is also very important to make sure that the home’s outdoor space has been maintained. Making sure that the grass is cut, plants are taken care of, and that fences are in good condition are characteristics that potential buyers will find appealing and that will make them interested in your property. Create an outdoor space that the new owners can envision themselves spending time in. It may be helpful to invest in new flowers and plants to brighten up the space. It may also be advantageous to clean any outdoor furniture and décor to create a comfortable and peaceful environment.

Decorate for the new buyers, not yourself

You may want to invest in new paint, doors, cabinets, light fixtures, and home accessories, such as rugs, couch pillows, or wall art. You can also choose to purchase new furniture, rent furniture for home viewing (staging), or even ask others if they have any furniture or accessories that you can borrow for the staging process. Creating a welcoming and warm space will appeal to a range of buyers and make it easier for them to imagine themselves living in the home. Get started by having me over for a market evaluation and consultation about staging your home for sale.

Keep it clean

When presenting your home for sale, it is also very important to make sure that it is clean. It may be beneficial to invest in a professional cleaning company to make sure that all aspects of the home, including carpets, windows, and even baseboards are spotless. Not only is this appealing to prospective buyers who are viewing the home, it makes the move-out process easier for you, saves time for showing preparation, and also makes the move-in process easier for new homeowners. It would also be helpful to have your home inspected by a professional and well-respected company prior to beginning the process of selling your home. It is important to determine if there are any potential problems with your home, such as structural issues, mold, or outdated or faulty systems and appliances. By performing a pre-listing home inspection, you can prevent major delays in the home selling process.

Price it right

Another important step that you can take in the home selling process is to make sure that you are selling your home for a reasonable amount given its condition, age, location, and the price of nearby properties that are similar to yours. As a Realtor, I can give you the best advice on pricing your home to sell. It is especially important in a challenging market to appeal to buyers by setting a reasonable price.

When deciding to place your New Houses For Sale In Edmonton, there are many important decisions to make, and many aspects of the home selling process to consider. It is important that your home is up to date, well maintained, and advertised extensively and professionally.

Want to know how to get the best price possible, even in today’s market? Want to know what similar ones on your street have sold for? Give me a call! Jeneen Marchant, Re/Max Real Estate – (780) 904-4240

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.

How to Find a Good Realtor

Finding a good Realtor is an important step in the real estate process. A Realtor can help you buy or sell a property, determine how to best secure a property that suits your needs, or help you generate a profit from the sale of your home. 

When looking for a Realtor to sell your property or help you find a property, there are numerous steps that you can take to find a qualified and reliable professional. With so many great Realtor Edmonton, how do you choose the one that will match your buying or selling needs? 

 

Are they licensed?

One of the first steps that you can take is to make sure that a Realtor is certified and meets the requirements to work in the real estate industry in Alberta. The Saint Albert Real Estate Council , or RECA, outlines the prerequisites for applying for a licence, as well as for working toward becoming certified. 

What have they sold in the past?

An important step in selecting a Realtor is to determine whether the properties that they have sold or have assisted customers purchase are similar to the kind of property that you either want to sell or purchase. For example, if you are trying to purchase a condo, it would be beneficial to have a Realtor who has experience with these properties. By finding a Realtor who has experience with a specific kind of property, they can help you secure a fair deal on a property or sell your property at a price that is comparable to similar homes. 

They don’t have to be “specialists” in that type of property by experience and knowledge goes a long way. What is their knowledge in a certain market? A specific neighborhood? How many properties have they sold? How long have they been in the business? By asking these questions, you can find a Realtor who will be a good fit for you and help you get the best service possible. 

Ask for Referrals 

To find a good Realtor, you can also ask those you know who have experience with a Realtor for a referral. By seeking the advice of those you know, you can get their honest opinion about a potential Realtor and find someone who will be able to help you. You can also look for reviews from online sources like Google or Facebook, but keep in mind that word of mouth can often be the best form of reference (this is where the majority of my business comes from).

Interview a few Realtors

Another important step in the process of finding a good Realtor is to interview a few different individuals and decide who would be best able to help you. You have many options as far as background, experience, and knowledge are concerned. Take the time to find a professional who will best support your goals and who is genuinely interested in helping you, rather than only being interested in making a profit.

When looking for a good Realtor, there are many factors to take into consideration. Although the process of locating a trustworthy professional can seem overwhelming, consider the above steps to help you make the process much easier and find someone who will work for you. 

I’d love to hear from you! What would you add to the list? 
I have worked with hundreds of clients over the years in the Edmonton area and I would love the opportunity to help you purchase or sell your next property. 

Give me a call at Jeneen Marchant, Re/Max Real Estate – (780) 904-4240

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.

Is Real Estate a Good Investment?

Edmonton Real Estate

Real estate is a good investment, but there are many things you should take into consideration. Investing in real estate is an important decision which requires a lot of time, effort, and resources.

What is your Real Estate Investment Goal?

 Tierra Mallorca https://www.tierra-mallorca.com/

By understanding your goals, budget, and the current real estate market, you can decide if now is the time to start investing in real estate. It’s always best to give yourself the time to determine whether it is an investment that you want to undertake. Like anything in life, there are pro’s and con’s to investing in real estate, but it is up to you to decide whether this is a venture that you want to take on. This article will help you make sense of the complex world of real estate and determine if it is something that you are interested in pursuing.

In cities across Canada, more and more people are interested in investing in real estate, because they see and understand the potential benefits of their investment. TV shows like Property Brothers and Flip or Flop have inspired many to invest in residential and commercial properties, restore them, and either rent or sell the property for turnover. But what are the potential benefits and consequences of investing in real estate? Is real estate a good investment, or is it an undertaking best left to professionals?

Real Estate Investing In Today’s Market

Edmonton’s real estate market has moved slowly so far this year due to the number of properties for sale and other factors like the federal mortgage stress test (which places limitations on the amount of money that potential homeowners can borrow to purchase a home). Though it may take time for Edmonton Real Estate market to recover, this does not mean that real estate is a bad investment. In fact, it is a great time to buy an investment property as you do have a ton of selection, prices have come down several percents over the last couple years, and mortgage rates are low.

Types Of Real Estate Investments

There are a variety of options where it relates to property ownership and deciding how to garner a profit from your investment.
Some investors choose to buy and flip a property, in which a property is purchased, renovated and sold to gain a profit.

Others choose to buy a property to be used as a rental. This is a common investment choice for people because they have the opportunity to have someone else down the mortgage, have equity grow over time, and pull in a bit of cash flow or monthly revenue.

There is even the option to own commercial properties like apartment buildings, commercial bays for rentals, and land. However, the type of financing and closing costs involved for a commercial purchase is vastly different than residential.

Deciding which options will work best for you will depend on several different factors such as how long you want to own the property for and what purpose you want the building to serve.

HOW TO CHOOSE A GOOD INVESTMENT PROPERTY

  1. Look for areas of the city that are growing.
    Population growth is a considerable factor in property investment. Look for areas in the city that are expanding.
  2. Invest in familiar areas
    Get to know the area you are thinking about investing in. You want to know your investment location as well as your own neighbourhood.
  3. Look for low vacancy areas
    When it comes to choosing an area to invest in, look for places with low vacancy rates. Investing in areas with a tight market, you can significantly increase your chances of finding the right renter quickly, and reduce the time between tenants.
  4. Think about the future
    It’s a great idea to find out what’s in the works in the area, so you can have an idea what the future looks like. It’s also a great idea to keep an eye on any residential developments that could be going up near amenities, such as schools and shopping hubs.
  5. Choose low-maintenance properties
    If you are looking to start investing and you don’t want to have to spend a lot of money in upgrades and renovations, look for a property that is ready to rent out immediately. However, be prepared to pay more for a fully finished home as someone else has built up the sweat equity getting it ready.
  6. Think about your tenants
    Choose a property that appeals to the people who are actively renting in that area; it will make it much more attractive. For example, a small apartment may be a more affordable rental property than a house, but if the local rental market is mostly families, your investment property might not be as appealing. Think about your tenant’s lifestyle… do they need parking, do they take public transit, etc.? This kind of questions should help when choosing a great investment property.

Bring in the professionals

I always suggest you speak to a professional Realtor (such as myself) when you are looking at an investment property. We can advise on which properties would be ideal for your investment portfolio. Want Market Information? Give me a call! (780) 904-4240

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.