If you are considering buying a home for you and your family, or you are an investor who is looking for a property, you have many options available throughout Edmonton. One of the options to consider when you are looking at the available properties is foreclosed homes. Buying these homes can have some great benefits, and they could be the ideal solution for those who want to buy a piece of property while keeping as much of their budget intact as possible.
What Is a Foreclosed Home?
A home will typically fall in to foreclosure when the borrower has not been paying their mortgage and is considered to have defaulted. The bank, or other lender, who holds the mortgage wants to recover the money they have lost on the property, and they will then sell this foreclosed home. If, after the sale, there is any money left after the bank has recovered their share, it will go to the original borrower.
Let’s look at some of the biggest advantages that can come from purchasing homes that are in foreclosure.
Better Overall Prices
Of course, one of the biggest reasons to consider buying foreclosures in Edmonton is because of the prices. Those who are working with a smaller budget can still find great homes that are in foreclosure, as the banks will usually want to sell the property as quickly as possible. It does not do them any good if they are holding property that is not making them any money. Therefore, many of the foreclosures will be for sale at below the market value, all in the effort to get as many buyers interested in the home as possible.
However, this does not mean that all of the foreclosures available are going to be great deals. You still need to consider just what the property offers, whether it needs to have repairs, and whether it will be worth your time and money or not. Often, even with the cost of rehabbing the property, it can still be a very good purchase option.
Lower Down Payments
In addition to the lower overall prices, you will find that the properties will often have a lower down payment requirement. This can be especially helpful for those who are first time homebuyers. Most lenders are going to require that a buyer has at least 20% of the price of the home to offer as a down payment. This will be much easier for buyers and investors when the total price of the home is much lower.
More Choice in Neighborhoods
One of the other benefits of buying foreclosures in Edmonton is the fact that it can provide buyers with a greater choice when it comes to the neighborhood they can afford. Remember, the cost of the home is lower with foreclosures, which means buyers can often afford to buy a home in a much better neighborhood than they could have if they were buying new house.
Smart Choice for Investors and Homebuyers Alike
There are plenty of great reasons to consider buying a foreclosure in Edmonton, as noted above. Whether you are looking for a property for your family or you are buying a home as an investment, which you plan to rent out later, consider buying a foreclosure property. Just remember that you will likely need to do at least a bit of work on the home to get it up to your standards.
It can sometimes be difficult to find foreclosures for sale on your own because ordinarily they are not posted as such. Therefore, you will want to make sure that you are working with a REALTOR®. A good real estate professional can help you to find some wonderful foreclosed properties that you might not have been able to find without their help. They can help you through the entire process of the purchase and explain everything you will need to do.
When a great foreclosure in Edmonton comes onto the market, it tends to get quite a bit of attention. If you find a home that is in foreclosure that interests you, it is a good idea to act quickly. Contact one of the Pelletier Bros at CENTURY 21 Reward Realty REALTOR® today to find some options that might work for you.