It’s a misconception that “Repo’s” or bank foreclosed homes make good investment properties and often sell for “dirt cheap.” I am here to tell you, as your proud Regina real estate agent that this is not always true! There are a few things you should know about Bank foreclosures in Regina and as you can expect, this information isn’t a bundle of sunshine. Bank foreclosures in Regina often come with a long process, no warranties and a non-emotionally involved seller.
Here are a few things you can keep in mind when it comes to Bank foreclosures in Regina:
1. The process
The process of a foreclosure in Saskatchewan can take months, this is called a “Judicial Sale.” A property can sit vacant for an entire year or more before it hits the market due to this process. The bank has to make so many attempts to allow the owners to come up with arrears, pay the owning mortgage or come to an agreement for repayment.
When the property eventually does hit the Regina real estate market, sometimes the bank can accommodate a quick possession—other times the law firm representing the bank must notify the registered owners of the current accepted offer and give them “one last opportunity” to come up with outstanding balance. If you have some interest in a bank foreclosure in Regina you should ask these kind of specific questions to your real estate agent so you know what your getting into.
2. Seller doesn’t care about you
Often, sellers want a nice family that’s going to take good care of the home their selling. In the banks case, they could care less about who you are or what you do for a living. All they want is a reasonable price for the home so the bank can recoup some of their lost profits (that is literally the bank representatives job). This seller also has no emotional attachment to the home so if you submit an offer 40K under asking you might get a plain old “no” instead of a justified response.
3. They aren’t always priced low
Banks, like the rest of the humans, want to get what is fair market value for their property. This means that they often have to list 10% higher than the actual market value of the property and go through a series of price reductions before they will accept any offer. This can be frustrating for Regina home buyers who have good education about the market or who have had a Regina real estate agent pull comparable properties that have sold for less than what this bank repo is asking. It can be frustrating.
However, sometimes, depending on the condition of the property it may be priced below market value. It’s often because they require so much work (cosmetically or structurally) that they must be priced low in order to sell. These properties are only suitable for the right kind of buyer.
4. They come with absolutely no warranty
The bank or bank representative have never lived in the home and cannot guarantee its working condition now or in the future. So, the property is essentially a mystery and the buyer must be comfortable with have no prior information about the home. When you are buying a bank foreclosure in Regina you waive any and all of your rights—the seller owes you nothing. If you spend $500 on a home inspection and find a broken furnace, the bank will not reimburse you for that home inspection and you also have to decide if you want to buy the property as is. If you move in and 3 weeks later you find a massive crack in the foundation, you have absolutely no recourse.
Bank foreclosures in Regina can be a GREAT opportunity or they can sit on the market for months at a time because it is priced too high for the condition. If you are a cash buyer and looking for a quick investment, sourcing these kinds of properties may be a good idea. First time home buyers with zero handyman skills and a small budget may not be the ideal buyer for these homes.
Either way, using an educated and professional Regina real estate agent is the best tool you can use when buying bank foreclosures in Regina as we have great relationships with lawyers and have more information about the pro’s and cons of buying these properties than the average joe.
Contact Me
If you have any questions or would like more information about this topic please give me a call at 306-552-7047 or fill out my online contact form!
Kelsey Smith Is Regina’s Choice
Choosing the right Realtor® is key to ensure a positive and successful real estate transaction. Kelsey Smith promises to deliver the education and time necessary to buy or sell your Regina home. Call 1-306-552-7047 and rest easy knowing you have made the right choice.