In Powell River, there are typically 2 or 3 homes for sale due to foreclosure at any time.
Fair Market Value
These properties are more likely to sell for “fair market value” rather than at the red-hot deal level. Often, the buildings need some work, hence the idea that they should sell for “give-away” prices. Most sales under foreclosure are “judicial sales” which require a judge to oversee the process and make a final ruling on the sale itself. This is to ensure that anyone who has a “charge” on the title has a fair opportunity to redeem some of their investment from the sale. So, typically they are not “given away.”
Court Ordered Sales are generally sold “as is, where is”. This means you accept the property exactly as it is with no promises or expectations on the date of completion. It’s important to be very clear on how much you’re prepared to spend on the property. A thorough building inspection by a qualified inspector is a must. It is also very important to consult with both your insurance broker and mortage broker prior to completing the sale. Higher premiums, down payments and/or interest rates may apply.
Finally, once you’ve negotiated your best deal with the mortgage lender’s lawyers, the sale must be approved in the Supreme Court. At this time, the value of your accepted offer is publically available and the judge will accept sealed offers from other buyers at the scheduled court hearing. Your good deal could be outbid, so it’s wise to bring your highest offer in a sealed envelope to court that day as well. Again, doing your homework and knowing the most you’re prepared to pay for the property in advance can be a big asset in this process.
It’s somewhat complicated, but good value can be achieved through diligence and perseverance. This is a good situation to have the help of a REALTOR.
Call me if you need some help buying a home that is under foreclosure.
Bill Bailey: 604 223-0811
RRSP Funds for Home Purchase?
If you have not owned a home for the past five years, you are considered a “first-time home buyer” for the purposes of this plan:
- You can use up to $25,000 of your RRSP funds to purchase a home
- The fair market value of the home must not exceed $425,000
- You must repay the funds withdrawn to your RRSP within 15 years
It’s possible that a “late-in-life” divorce could put you in situation with a significant quantity of your funds locked up in RRSPs and you’ve been renting for five or more years. This program can free up money you may need for a deposit on a home purchase for yourself. These are the basics of the plan, but you can get all the details from:
Residential Property Sales Activity This Year:
As you can see from the graph, after a slow winter, there was a nice, seasonal upswing in the residential sales in Powell River beginning in March. For four months it’s been steady, even increasing slightly. It’s not unusual to see a drop for July as people focus on summer plans and activities. August is typically slower as well with an expected upswing again in September. If you’re thinking Powell River Real Estate, plan ahead to catch the Fall market activity. Call me for a free market evaluation!
Central, Ocean view Condo
This one is back on the market at a very realistic price!
#203-6900 Burnaby St
$179,000 (New Price!)
Call me for more information.
Bill Bailey: 604 223-0811