I just saw a foreclosure in northwest Calgary today and while I was waiting for my team to arrive at the house I finally figured out how to get the Nav in my car to stop thinking the car is in the US! I know that has nothing to do with real estate but that item has been on my list of things to do for a long while – nothing better than scratching a long standing item off your list! The property that we went to see today is an excellent deal and I think that my partners will agree that we should jump on it – there is about 50K to be made in this house in about 3 months of renovations are required. Foreclosure homes are almost always in need of repairs and a lot of them are very dated but if it has good bones this is a renovators dream project! There was a long period in Calgary that I did not even think about foreclosure properties due to the banks being stubborn on the prices, but there are still deals out there if foreclosures at all times of the real estate cycle. When considering a foreclosure in Calgary and other markets there are some things that you do need to be careful of for sure. For instance, when you purchase the home from the time you get the accepted offer until you take possession and get your own insurance the bank will not cover damage to the house such as vandalism but they do cover catastrophic damage such as the house burning down so don’t worry about that. Some of these homes also have the water shut off and the plumbing cleared of all water and this can cause some issues with pipes leaking and other water related problems. Just like any other property that is older foreclosures will be rough around the edges with older fixtures, lighting, laminate flooring from the 70’s and sometimes asbestos around pipes or used as insulation. This type of repair is not the end of the world but does require some special attention to make sure the home is safe for the contractors you are using and your end buyer. Be sure to check your local regulations on how these things need to be remediated, some areas have strict rules on how asbestos and other hazards need to be dealt with. Being able to look past the dated interior and the fact the roof needs replacing is something that your every day buyer and even a lot of investors are not able to do – if you have the right perspective to see the potential in foreclosures then you could make some large profits on houses that nobody else wants. The best part about foreclosures (if priced right from the bank) is that you can negotiate a significant discount due to the repairs needed by making a strong offer – no conditions is best but if you have a great renovation team you may not need an home inspection condition or you could use private financing and not need that as a condition. With lower prices and less competition you might want to consider starting your real estate fortune in foreclosures both in Calgary and Abroad!
To your Success!