5 Important Tips to Keep in Mind When Buying a Foreclosure
There’s a lot of hype with buying a foreclosure. Many people believe that foreclosed homes can be purchased for pennies on the dollar; however, that’s not always true.
There are two types of foreclosures in Canada: foreclosure by judicial sale and foreclosure by power of sale. In the former case, the foreclosure is facilitated under the supervision of the court. In the latter case, the foreclosure is facilitated by a Power of Sale clause in the mortgage contract. This means it is usually sold by the mortgage holder.
Either way, in both situations, there’s a party waiting for a certain payout to earn a profit. That means that you aren’t guaranteed to find a crazy, amazing deal that will blow your mind.
Tip #1: Compare Prices of Similar Listings Nearby
Don’t assume that the listed price is lower than the market value just because it is a foreclosure. When buying a foreclosure, take some time to do some research on similar listings nearby. Compare the price of the foreclosure with the prices of other similar properties. Pay attention to the condition, age and size of each property when making comparisons to make an informed decision.
Tip #2: Visit the Foreclosed Home in Sudbury In-Person
It’s difficult to get a good idea of how the property looks like from photographs and videos. The photographs may look amazing, but you could be sorely disappointed with the place in person.
Professional photographers can skew the perception of the size of the home with wide-angle camera lenses. Small spaces can look huge. Also, old photographs may not correctly show the current condition of the property. Before deciding to make an offer on a foreclosure, visit the property in-person.
Drive by the place to see what it actually looks like. Even if the property is not available for viewing, take a stroll around the block. The stroll can reveal telling information about the property and the neighborhood, like the crime rate.
Tip #3: Get the Home Professionally Inspected
Always try to get the home inspected when you can. Many banks are instructed by their superiors to accept the highest offer submitted. It is not necessarily based on conditions. As a result, it's always advisable if competing with multiple offers to still have a home inspection condition in your offer. You won’t necessarily lose a deal to a lower offer without any conditions.
Our team has successfully sold numerous Bank Repo properties, and have almost always had a home inspection condition included in the contract to protect our buyers’ best interests.
Tip #4: Hire an Experienced Realtor
To make sure that your best interests are always protected, hire an experienced realtor. Don’t just call the first person you happen to see online. It’s important to find a realtor who has experience in dealing with bank owned properties, like our team. Not only are we well-versed on the processes involved with buying a foreclosure in Sudbury, but we also know what to include in the contracts. We’ll make sure you’re prepared each step of the way!
Tip #5: Get the Finances Ready
To successfully buy a foreclosure, it’s vital to have the finances ready. Speak with a mortgage broker or a real estate agent to apply for a mortgage. The process will help you identify the price range that you can afford. As mentioned before, foreclosed homes in Sudbury are listed at various price points. They’re not always cheap.
By having the finances ready, the home buying process is expedited, and you’ll move into their new abode quickly.
Look Into Foreclosed Homes in Sudbury
If you do extensive research, it’s easy to find great deals on foreclosures. It never hurts to speak with a real estate agent first. Real estate agents help you keep an eye out for foreclosures that meet your needs and expectations. These professionals are up-to-date with the market, and are alerted whenever new listings are added to the MLS.
Contact us, and we'll do just that. Our team and I will help you find your dream place at an affordable price, so you won’t break the bank finding the perfect place to call home.