Breaking into the real estate market can be a life changing experience. If you have been fortunate enough to live rent free at home, while eating lots of peanut butter and noodles; you may have been able to save up a decent down payment. Some families opt to still charge their kids’ rent while attending school or exploring their first job and place that rent money into a “future down payment” bank account. However, not everyone is as organized or has the luxury of optimizing a rent free and superior savings environment. If you have never considered Foreclosures and Court Ordered sales in British Columbia, this may provide an excellent way to earn your purchasing rights at fraction of the cost. It is vital to be educated and aware while engaging in the process.
Buying “As Is, Where Is”
Understanding the legalities involved in a foreclosure or court ordered sale can help you greatly throughout this purchase. While it can look like a great deal on paper, I always recommend walking the property and visually inspecting the premises. Keep your eyes open for cracks in the foundation, musty or moldy odours, mossy rooflines and other issues that may be expensive to fix. Some clients feel more secure hiring a Home Inspector to provide an estimate of priority fixes along with items that can wait. You may be paying significantly less for the property; however, if key items like the roof or water damage need to be addressed, it is vital that you have all the facts in order to budget correctly.
The Potential for Extra Damage
It is unfortunately common for people who have been evicted by the bank or the courts to leave in begrudgingly or hastily and not care as much about cleaning up behind themselves. This is a good thing to keep in mind ahead of time; especially if you have been viewing new properties, show home suites and regular houses for sale. Private sales are often immaculately clean and ready for showing to future buyers. Foreclosures and court ordered sales may have messier features, overgrown landscaping or greater superficial damage. People leaving quickly may not properly uninstall lights or drapes etc. and the potential for drywall imperfections and associated minor issues are greater.
Untrimmed foliage may cause a negative impact on curb appeal. Being mentally prepared to view the foreclosed property with the notion that you may be up against some new paint or a new fence will help you concentrate on the bones of the building. Instead of focusing on dirty window ledges for example, it is more important to check the date on the windows and see if they are fairly new and efficient or if they are single pane drafty nightmares.
Common Reasons for Property Foreclosure
People are unable to continue their mortgage payments for a variety of reasons. Medical expenses, divorce, injuries leading to loss of work or losing one’s job are among the top reasons. When the bank needs to recoup the amount of money left owing, some home buyer’s are able to capitalize on another person’s loss.
An Experienced Realtor Pays Off
What is involved in the court ordered proceedings? What happens if an auction like atmosphere ensues? Will there be subjects to remove on this foreclosure? Why is this property foreclosed? Is there a grow-op or illegal drug history tied to the home? The process of dealing with foreclosures entails a few different steps in comparison to a traditional sale. These common questions are simple to discuss. I can provide you with the insight and experience in purchasing a court ordered sale. Vancouver’s market is rich for the picking if you know exactly where to look and can maintain an open mind. I look forward to meeting with you in person!
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