5 Tips for Buying a Foreclosed Home in Edmonton

Edmonton Foreclosures Tags: , ,

Buying a foreclosure property in Edmonton is always tricky. To begin with, it is difficult for the buyers to distinguish between a good deal and a bad deal as several foreclosed homes offered for sale might not allow professional home inspection. Remember, a foreclosure home sale is not your regular real estate deal and the seller is not a realtor; it is the court.

In Edmonton, as the foreclosure listings are expected to increase, many buyers including first-time buyers, flippers and investors will vie for these foreclosed homes. The slipping economy has caused a lull in the regular real estate market; however foreclosed homes, owing to their significantly lower prices, are still in demand. Additionally, many people find acquiring and reselling a foreclosed home with little remodelling a lucrative opportunity to earn significant profits in a very short span of time.

Whatever your motive to buy a foreclosed property in Edmonton, the following tips will significantly help you in making a good purchase:

 

  1. Make sure what you bid for

Foreclosed properties are listed for sale either by banks or the court. Since neither the court, nor the banks have any experience or business interest in buying and selling real estate, most foreclosed properties are sold in the ‘As-is’ condition and do not offer any added feature or entertain conditions set by buyers. So, when you set out to buy a foreclosed property, make sure that it is worth the listed price.

  1. Check for Titles and Permits

It is important to carefully examine whatever titles, liens and permits are available for the foreclosed property. There might be a possibility that the court may not provide you with any permit for the deck or the garage. Similarly, careful examination of titles will help you find out if the property has any unpaid dues in taxes, bills or debts.

Whether a flipper, investor or home buyer, everyone must be ready to expect anything in a foreclosure property deal. It is wise to make pre-calculations considering the worst case scenario before bidding for the foreclosed listing.

  1. Do your own research

No research is better than the ground research. Knocking on few doors may actually reveal much more than the legal papers may ever list. Neighbours can not only tell you about the current market value of properties in the area, but can also shed some light on the foreclosed property itself. You can learn a lot about the previous owners from locals in the area; their temperament – how they kept the house or if they ever reported a leaking basement.

  1. Make provisions for a down payment

Considering you find the house to be in order and have also won the bidding, you would need to part with a hefty down payment in a short span of time. To avoid any last minute desperation owing to lack of funds, many smart investors provision for the down payment much before applying for foreclosed properties.

  1. Benefit from an online listing service

Access to validated information plays a key role in buying a foreclosed home. This is where online listing services like Foreclosure Search Canada come to your rescue. The online and app based listing services regularly features foreclosure homes across Canada. Moreover, Foreclosure Search Canada posts informative blogs, industry research reports and other knowledge resources to keep buyers in-step with the foreclosure market.

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