When searching for Calgary foreclosures, many buyers mistakenly assume these properties are inherently better bargains. But the truth is, foreclosures represent a type of transaction, not a specific type of property. In fact, you’ll find foreclosures across all property types: houses, condos, townhomes, and more.
The Key Difference: Who’s Selling?
Imagine six identical homes for sale on the same street in Calgary. The only distinguishing factor is the seller:
The Family – A growing family looking to upsize.
The Disgruntled Landlord – Eager to sell due to tenant troubles.
The Inherited House – Owned by out-of-town heirs with no intention of moving in.
The Divorcee – Ready to move on with their life post-divorce.
The Bank – Selling a foreclosed property.
The Court – Overseeing a judicial sale.
While the first four scenarios typically involve standard buyer-seller transactions, properties sold by the bank or courts fall under foreclosure transactions, which come with unique conditions.
Why Are Foreclosures Riskier?
Foreclosure properties are sold “As Is, Where Is” on possession day. This means buyers take on more risk, as there are no guarantees about the property’s condition or whether it will be vacant. These risks sometimes (but not always) lead to lower prices.
Do Foreclosures Guarantee a Bargain?
Not necessarily. In a buyer’s market, foreclosures might offer price advantages due to the increased risk. However, in a seller’s market, competitive bidding often eliminates that edge. Plus, motivated sellers like the disgruntled landlord or the divorcee may offer deals with less hassle and less risk than a foreclosure.
What Does This Mean for Buyers?
The best deals aren’t always foreclosures. Broaden your search to include all motivated sellers. By exploring the larger market of highly motivated sellers, you increase your chances of finding the right property at the right price, without the added stress of a foreclosure transaction.
So, back to the original question: which of the six identical properties is likely to sell below the others with the least risk? More often than not, it will be one of the non-foreclosure sellers, depending on their urgency to sell.
Comments:
Post Your Comment: