Top 10 Tips When Buying a Foreclosure in Vancouver

Hey guys, this is Solomon from the BC Elite Real Estate Group.

Welcome to my channel Living in Vancouver.

Now today's topic. We're going to be talking about foreclosures. Now if you're a buyer and looking to move into the Vancouver area or an investor, some people might consider foreclosures to be a good deal. So this video is all about that. I'm going to share with you guys all my tips as I have sold many of these properties and I have also listed many of these homes and have worked with lots of buyers and I have been able to secure them some really good deals.

I'm going to share with you guys. These top 10 tips for buying a foreclosure in 2020.
All right. First of all, let's talk about these foreclosures or court order sales as they are in British Columbia and how the system works. So what happens is a listing goes up for sale that's sold by the bank and the banks are in the market to not hold properties, but to sell them liquidating and get enough money, market value anyway, to pay off their debt and any excess left will be given to the person that has been foreclosed.

So what happens is you find a property you make an offer and if the bank accepts it, you have few days for your subjects if you have some and then once your subjects are removed you then have a court date set. So now the court date set is usually between three to four weeks later and also your accepted price is public knowledge.

So the court date is set. So now you’re going to show up in court and hope that nobody else is there to outbid you. So on the court date, what's going to happen is you and your Realtor will go to court. Your realtor will be able to tell you how many offers are currently on this property and that there might be none or they could be even 20 as I've experienced in the last.

Three-four years you will also have another chance at providing a better bid. So the person that has the accepted offer will have another chance at making their offer any better. Every buyer has to provide to their realtor. They're sealed bid and their Realtor will hand it over to the Realtor that's representing the bank and that's all handed over to the courts and then the judge will decide which is the best offer that's going to be accepted.

Usually, the higher offers are accepted, but that doesn't mean that's always the case if Original bidder has a good offer and it's close to all the other ones and you know, the judge might consider giving that original bidder might give them the benefit of the doubt and have them win that property...

All right. So let's talk about the top ten tips for buying a foreclosure. Foreclosures don't necessarily mean that's a good deal. Do your homework. Make sure that there's not a lot of problems in that specific property, maybe it’s a stratum. So you want to make sure you did all your homework and your due diligence.

However, they tend to be a little bit cheaper than what you buy market value. But there is a reason for that so definitely have your Realtor double-checked and you do your homework as well. And also if you're going to be competing with other bidders on that property, the price does tend to go up. So that's another reason why you don't necessarily always get a good deal on foreclosures.

You can't just go and buy directly with the bank.You have to have your own Realtor and it has to go through the court systems for you to take ownership of that property. Make sure you get the property inspected. You are going to be buying the property as-is and make sure you understand that you've checked everything out and once you buy the place, you basically can't walk away. It's yours.

Always budget for repairs or even appliances because usually the bank's remove some of the valuables in there and they  sometimes also take the appliances so you might want to budget for that and as well as foreclosures tend to have a lot of repairs so budget for that as well into your numbers.

Be on time usually Court starts at 9:30, but you do definitely want to be there early so you can scope out the scene and make sure you have your ducks in a row and have the best bid going in.

All right tip number five is making sure you get your financing in order to have the cash, have the mortgage because again, once you are the winner, you basically have to purchase it. You can't walk away from the deal it's yours. And so that's important step is make sure you're pre-approved.

Make sure you got your money and all your ducks in a row. And also make sure that you could do have the appraisal done on it if you are getting a mortgage.

Now tip #4.. being first to bid and having your offer accepted does have some role like I mentioned earlier the judge might consider your offer over the others on the court date. If you were the first one to bid it and offers are pretty similar. So so there's an advantage for being the first one to trigger the court date.

Now tip number 3 like I mentioned earlier as the judge would allow you to submit another sealed bid in if you feel that your bid is under what you think you want to pay and you want to improve it. You do have the option to submit another offer on court date now tip number two.
This is pretty obvious. But a lot of people forget to bring their deposit to the Foreclosure it is so if you are going to be going to court make sure you have your deposit in hand and inside the actual sealed envelope.

Okay, and finally tip number one, where do you find foreclosure list now?
That's a good question. You would have to contact your local real estate agent or you can even contact us we have access and a filter that we can find all the foreclosures that are in the market today.

And as you know, I am a local real estate agent and we sell our team and I from Chilliwack, Fraser Valley, and of course the Lower Mainland, so we do get a hot list of homes that are under foreclosure and we do have this monthly newsletter with the foreclosure list.

So if you would Access to it. Don't hesitate to sign up on our website YVRBankSales.com sign up for our monthly list of foreclosures, or you can text me at seven seven eight, six five five, seven nine nine nine or send us a message of below.
Don't forget to subscribe, comment below and let us know if you have any questions about the foreclosure process, and we love to help you out. Thanks for joining in today.