Foreclosed homes are properties that lenders have repossessed due to the previous owner’s default on mortgage payments. These properties are usually sold at below-market prices, making them an excellent option for buyers looking for a little more bang for their buck. The process of buying a foreclosure property in Calgary requires careful research and expertise, which is why working with an experienced REALTOR® is of the utmost importance! From researching properties and securing financing to navigating negotiations and closing the deal, this article will provide an overview of some steps involved in purchasing a foreclosure property in Calgary.
Research the market
The first thing to do when considering buying a foreclosure property in Calgary is to research the market and find available foreclosed properties in the area; this can be done by exploring real estate websites, bank-owner property listings, or hiring a real estate agent. You will want to gather information on any outstanding liens or taxes that might be associated with a property you’re interested in. By dedicating time to research and identification, you increase your chances of finding a suitable foreclosed property that aligns with your budget and requirements, setting the stage for a smoother and more successful buying process.
Get the financing
Because many foreclosed properties are sold at below-market prices, they make for reachable investment opportunities! Some foreclosed properties require an all-cash payment, meaning you need the funds readily available. Getting pre-approved for a mortgage before searching for foreclosed properties is highly recommended for buyers planning to use financing. Pre-approval helps establish a clear budget and helps you know how much you can afford to spend. It also gives you negotiating power and increases the chances of a successful transaction. However, buying a foreclosed property through traditional mortgage lenders may have stricter requirements or hurdles, given the property’s “as-is” condition.
Hire a real estate agent
Working with a Calgary REALTOR® who you trust and feel confident in makes all the difference in the world! The job of your REALTOR® is to help you find a home, negotiate on your behalf, and guide you through the entire process. Buying a foreclosure property in Calgary is complex and demands both experience and knowledge, so the guidance of a real estate agent is invaluable. The great news about buying is that there are no fees to pay your REALTOR®, as the buying agent splits the commission with the seller’s agent, meaning the seller pays the commission.
Book an inspection
When buying a foreclosure property in Calgary, you should prepare to put money aside for an inspection. Uncovering any potential issues or defects that the property may have will save you time and money in the long run, and often, these things are not visible to the untrained eye. This information will help you make an informed decision about whether or not you want to make an offer. An inspection report can also give you negotiating power, which is a significant advantage in a hot market. Getting a home inspection done before you make an offer is a vital part of home buying; we always encourage our clients to refrain from bypassing an inspection, although it may seem tempting. Here is an article we wrote all about why a home inspection matters.
Make an offer, negotiate, and have your offer accepted!
At this point, you have found a foreclosure property in Calgary you want to buy, which means it’s time to make an offer! Your Calgary real estate professional is fluent in offers and negotiations, so they should be guiding you through this process, but for the sake of this topic, here is a little of what you can expect:
- Your REALTOR® will conduct a market analysis and compare other Calgary real estate listings to determine the home’s market value.
- Your REALTOR® will prepare an offer, and you will review it together to clarify what you are signing and agreeing to.
- Your REALTOR® will present your offer to the seller and negotiate on your behalf.
Making an offer and negotiating is much more complex than this, so you can find more information on offers and negotiations here. Once you meet all your conditions and you’re prepared to proceed with the purchase, you will get a waiver to sign from your REALTOR®. If you do not waive all of your conditions, your accepted offer is null and void, meaning you and the seller no longer have any obligations to one another. Only waive your conditions if you are 100% sure you will proceed with the transaction.
Working with Realty Unleashed to close a deal!
Realty Unleashed is an independent real estate brokerage serving clients out of Edmonton and Calgary. We have helped many clients buy and sell their homes, and we are committed to helping you close the deal on a property you love. If you are looking at buying a foreclosure property in Calgary, please fill out the form below, and someone from our team will get back to you soon.
