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.

The Three Biggest Mistakes Sellers Make When Listing Their Home

Selling a home can be a stressful and emotionally-draining process, especially if you’re selling a home for the first time.

Without professional guidance, home sellers often make mistakes that end up costing them.  In this blog post, I’ve listed three of the biggest mistakes people can make when trying to sell their home in the Edmonton area.

 

1. Price 

The most common mistake people make when trying to sell their home is overpricing their property.

 

Many home sellers are unfamiliar with the ever-changing housing market in Edmonton and often think that their homes are worth much more, or much less, than they actually are.  The same house can vary by 10s of thousands of dollars in one community, let alone across the city.

 

If your home is overpriced or doesn’t match market value, you risk losing out on potential buyers who will see your home when it’s fresh on the market.  With today’s inventory, buyers will not look at homes that are overpriced as there is just too much selection. The best chance for getting you the most amount of money is when the property is newly listed…so it has to be priced right.

 

To make sure your home is priced right, the best thing you can do is hire a Realtor Edmonton and have them give you a market evaluation on your home. They will help you price your home correctly from the get-go, so you can ensure that your home is being seen by as many prospective buyers as possible, and that you are getting fair market value for your home.

 

2. Condition

When selling your home, it’s your job to make sure that it is in great condition for potential buyers, especially if you plan on showing your home.

 

Put yourself in the shoes of a potential buyer and think about what easy changes you can make to spruce up your home before you put it on the market.

 

This could be as simple as giving your walls a fresh coat of paint, steam cleaning old carpets, or giving the backyard a little landscaping love.

 

If you’re having trouble seeing your home from the buyers perspective, ask a close friend or family member to tour your home and give you their unbiased opinion of what they think could be updated or changed.

 

3. Marketing

In order to Houses For Sale Edmonton, you have to make sure that potential buyers notice it. That’s where marketing comes in!

 

Advertising your listing online and posting high-quality photos will help garner showings, but marketing a property is way more than this.  It truly takes an experienced Realtor to be able to look for potential buyers, know how to cross-sell by asking the right questions from every inquiry, and so much more!

 

 

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