Muskoka

Speaking to a local Realtor last week, he advised me that property is selling for regionally 20% under asking price. I've just found a foreclosure (repo) for sale- anybody any ideas how realistically foreclosures are priced and how to get a good deal on them?

Almost Canadian

How long is a piece of string? It will depend upon local market conditions

XCMTBer

Locally? Where a location may make your post a little more relevant , BTW Ottawa market was up again last month.

Southcote

Be careful in buying a foreclosure. I understand that you buy them with the previous owner in place, and then have to apply for the sheriff to remove them. Whilst this is easy to do, they could trash the place in the interim

PrairieSushi

I've heard that it's standard for foreclosure homes to be lacking light fittings, etc - people take whatever they can - I don't blame them.

Novocastrian

Ha. That's nothing. In Germany people routinely take the kitchen (yes, all of it) and sometimes the bathroom fixtures, let alone the light fittings. This doesn't just apply to foreclosures either.

Muskoka

ok - thanks one & all. This one is a new home that was never finished. Have to go & view & take it from there I guess.

Southcote

I guess if it was never finsihed there isn't much to take !

Auld Yin

I suggest this is more the exception than the rule. The mortgagee must have legal ownership before commencing to sell the property under foreclosure. Having been involved in a number of foreclosures over the years I can state with reasonable accuracy the previous owners had already been evicted or had left voluntarily.

Helen Parnell

In Calgary, the courts deal with offers on repro's and if you go in too low then the judge will not accept it,

As for 20% drop from list to selling price. In Cochrane it is around 5% but often you find the sellers have had to drop the list price to get an offer.

PrairieSushi

Don`t know the official Calgary market figures, but prices on new listings seem to be looking up again.

MB-Realtor

Here in MB with a foreclosure the original owner has until the transfer of title to pay their mortgage and reclaim their home.

The problem in MB is that title transfer is often 30 days AFTER possession, so if you make any changes to the home during that time you may be asked to return it to as it was, or just lose the money you invested in those changes.

Other than that they are always sold "As is - Where is" so no going back if there are hidden major problems.

Foreclosures here (not that we've had many) have not sold any cheaper than other similar houses.

Alan2005

In the UK repossessed property can be sold at auction. This can mean it's significantly cheaper, but the risks are higher for the purchaser.

Are there property auctions in Canada?

MB-Realtor

It is legal in most (if not all Provinces) to sell property at auction, though it is rare. The only time I have heard of it was with a Farm. There are complications as an Auctioneer can only perform the actual auction and is not licensed to accept offers or deposits which must be handled by either a Real Estate Broker or a Lawyer. This is all covered by Provincial Real Estate Laws.

Foreclosures and other "distress" sales are normally sold via Realtors, by the Trustees/Courts responsible to the various parties involved.

Alan2005

Thanks for the info.

I wouldn't buy a house at auction in the UK, your bid is legally binding and you need to sort out surveys etc before the auction date. You can spend quite a bit of cash with no guarantee you'll get the house or even the funding to get the house. They are typically the reserve of developers and professional landlords rather than your average guy buying a house. Or at least that's my impression of them - I guess the same can be said for them here.