Many real estate investors are drawn to forecloures due to their lower list price. However, before taking the risk of purchasing, Alberta buyers should do their homework. Here are a few considerations that can help a buyer decide whether a foreclosure is worth buying, or whether it could end up being more trouble than it's worth.
Buying property sight unseen is rarely a good idea. Some people will rush to make an offer on a low-priced foreclosure for fear of missing out on a deal. But seeing a property can offer a lot of information, not only about the home but also about the neighbourhood. Those who wish to purchase the property to rent it out should also look into typical rents in the area.
When viewing the property, it is a good idea to investigate its history. Homes that have been abandoned and left empty for long periods can be higher risk purchases. Inspecting the property thoroughly and reviewing the space with a team of tradespeople can help a buyer understand the cost of getting it ready to live in or rent.
All of the above listed steps are a good idea in any real estate purchase, but foreclosures require even more special attention. In addition to this prospective landlords should do the math to understand whether the accumulated rent will be higher than the cost of buying and fixing the home. They should also speak with a lawyer to understand Alberta real estate laws regarding buying and renting out a foreclosure to make sure it is legally feasible.