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Buyer Beware - 3 imporant tips for buying a foreclosure in the Fraser Valley


Blog by Crissy Turner | November 26th, 2014


BUYER BEWARE - tips to safely purchasing a Foreclosure in the Fraser Valley:

1. GET AN INSPECTION
It is imperative when considering a foreclosed property to hire a professional inspector to carefully look at the home prior to submitting an offer. In order for a home to go into foreclosure, the owner must be behind in payments. In most cases this is due to some form of financial hardship which more than likely affected other financial responsibilities. The home may be in disrepair or need renovations to be habitable as a primary residence or for sale or rent to another individual. You might be getting a great deal on the purchase price, however if you have to invest a significant amount of cash to make the home livable, your investment becomes more risky. Remember, even if you are not the first to make the offer, you can still get an inspection. 


2. LOCATION LOCATION LOCATION
Location always matters! Even if its a great price due to foreclosure, if neighborhood is experiencing a downward trend, you are not likely to recoup your renovation investments. You can change out cabinets and flooring, but you can’t change location.

3. USE A REALTOR
Unless you are a seasoned investor or have experience in the real estate industry, it is important to recognize when you need professional help. Buying a foreclosed property offers many benefits, however it is not the same as buying a home in the traditional manner. Foreclosure, pre-foreclosure and homes sold at auction all have different pros and cons that are readily understood by professionals. It is not simply an opportunity to buy a home at a discounted price, therefore know what you are getting into before whipping out your cheque book.
When the process of buying a foreclosed property is handled correctly, the deals are there! Many first time home buyers would otherwise not be able to afford getting their first place. In addition, savvy investors can turn a relatively quick profit if they have followed proper procedures in a period of time prior to sale. You wouldn't sue someone without a lawyer, so don't buy a house without a realtor, especially a foreclosure! 

Take a look through the listings on this page for foreclosures in the Fraser Valley.  If you see a home that you'd like to view in person give me a call and I'd be happy to show you.