There are a lot of benefits to buying a foreclosure… but there are a lot of misconceptions too. If you’re looking into purchasing a foreclosure property based purely on the fact that it may be a “discount” or the bank’s just trying to give it away, you should probably give it some more thought. The bank has already taken a pretty big loss, the homeowners stopped making their payments, and they had to incur legal expenses with the foreclosing of the property. They are most likely now paying the water bill, the electrical bill, the gas bill, and maybe even paying someone to mow the grass. So with whatever loss they’ve taken, they're going to want to recoup their losses as much as they can.
So, is the price always reasonable? No it’s not, however most of the time they won’t be unrealistic with their asking price. They will have the property appraised and they’re going to (hopefully) list it at a reasonable price. But they’re not going to give the property away, and they’re certainly not selling it for pennies on the dollar. Yes… they do want to get these properties off their hands, but they won’t be selling them at the expense of losing an additional 20, 30, 50 thousand dollars. If the property is in good condition, there’s no reason for them to discount it. If the house is a nice house that any buyer would love to have, they’re going to sell it at fair market value - or pretty close to it. If the house has been vandalized or needs extensive repairs, they’ll take that into account when they set their asking price… but the price isn’t just pulled out of thin air, they have the property appraised prior to putting it on the market.
If you are interested in purchasing a foreclosure property be sure to recognize the risks along with the pros. You may be able to purchase the property below market value, although you should know that this may result in you being stuck with the previous owners repairs/maintenance or lack thereof. Plus if any work was done without the necessary permits you may have to pay to get it redone. However if you are a property flipper there is a potential for an investment gain when buying a foreclosed home. The property is usually vacant so possession can be within 30 days, but you may find that there is no electricity or other utilities unless the bank continues to pay for them and/or the home is in a state of poor cleanliness as the previous owners probably didn’t tidy up before vacating the property.
Some other things to consider: • Vandalism isn’t uncommon in foreclosures; thieves will break in and steal anything… even the wiring, so look out for that • Budget properly • Ask if there are any disclosures that the seller needs to make - or any hidden issues • Bring in an expert to do an inspection - but you need to see the house yourself as well • The longer a homes has been empty, the more repairs it’ll require • Find out if the home has been winterized - and ask to see the paperwork
All of this isn’t to say you shouldn’t look into foreclosures, if you are interested in viewing any foreclosure listings or you maybe just have some questions about foreclosures in the Battlefords area, send us a email, leave us a message on Facebook or just give us a call, and we’ll get back to you right away.
When buying a home, it is important to consider whether or not to invest in a home inspection. A home inspection is a thorough examination of a property by a trained professional, designed to identify any potential issues or defects in the home. By having a home inspection, you can gain a better understanding of the current condition of the property and any repairs or upgrades that may be necessary.
One of the main benefits of a home inspection is that it can provide peace of mind for the potential home buyer. Knowing the condition of the home and any potential issues can help to alleviate any concerns or uncertainties about the purchase. Additionally, a home inspection can also help to negotiate a better price for the property if any repairs or upgrades are needed.
Another benefit of a home inspection is that it can identify any safety hazards in the home, such as faulty wiring or a leaky roof. These hazards can pose a risk to the occupants of the home and should be addressed as soon as possible.
However, it is important to note that a home inspection is not a guarantee that all issues in the home will be identified. There may be hidden defects or problems that are not visible during the inspection. Additionally, a home inspector may not have expertise in specific areas of the home, such as electrical or plumbing systems. In these cases, it may be necessary to hire a specialist to further inspect these systems.
In summary, a home inspection can be a valuable tool for potential home buyers as it can provide insight into the condition of the property and any potential issues. However, it is important to be aware of the limitations of a home inspection and to consider hiring specialists for specific areas of the home if necessary. Ultimately, the decision to invest in a home inspection will depend on the individual's specific needs and concerns when purchasing a property.
February shows an increase of active listings from 88 homes to 103 homes. Sale prices also show an increase with the home sales including more expensive homes sold.
We are seeing much less activity in the realestate market than 2021. With 7 sales and lower inventory of 88 detached homes for sale it is much more of a seasonal normal market in the Battlefords. We are still experiencing favorible mortgage rates. Buyers are looking for move in ready in all price points. I can't stress enough how important it is to have your house looking it's best prior to exposing it to the market.
It’s clear that owning a home makes financial sense. But lately, the emotional side of what drives homeownership is becoming increasingly important.
No matter the living space, the feeling of a home means different things to different people. Whether it’s a familiar scent or a favorite chair, the feel-good connections to our own homes can be more important to us than the financial ones. Here are some of the reasons why.
1. Owning your home is an accomplishment worth celebrating
You’ve put in a lot of work to achieve the dream of homeownership, and whether it’s your first home or your fifth, congratulations are in order for this milestone. You’ve earned it.
2. There’s no place like home
Owning your own home offers not only safety and security but also a comfortable place where you can simply relax and unwind after a long day. Sometimes that’s just what we need to feel recharged and truly content.
3. You can find more space to meet your need
Whether you want more room for your changing lifestyle (think: working from home, dedicated space for a hobby, or a personal gym) or you simply prefer to have a large backyard for entertaining, you can invest in a home that truly works for your evolving needs.
4. You have control over renovations, updates, and your style
Looking to try one of those decorative wall treatments you saw on Pinterest? Tired of paying an additional pet deposit for your apartment building? Maybe you want to create an entire in-home yoga studio. You can do all of these things in your own home.
Whether you’re a first-time homebuyer or a repeat buyer who’s ready to start a new chapter in your life, now is a great time to reflect on the non-financial factors that turn a house into a happy home.