Should you buy a Condo Foreclosure? Here is what you need to know!
Edmonton condo foreclosures can provide investors with the opportunity to find great value in any market. However, there are also many different variables that factor in to whether or not a particular property turns out to be a fantastic bargain or a financial headache. Most condo foreclosures are sold as is, which means that the seller doesn't warrant the unit. Appliances also fall into that category, while condo documents are not provided by the seller either. Therefore, digging into the background of the building itself is of critical importance.
One of the first steps of investigating a potential condo foreclosure investment is finding when the condo insurance renewal occurs. A reserve fund study report happens every five years, which means there could be costly additional payments lurking on the horizon. Since the buyer has to pay for the condo documents if conditions are permitted, that can also add to the total cost. Additionally, the seller will not disclose if any special assessment has been addressed or if/when the building's next assesment is upcoming. Therefore, it is extemely important to pull the information statement which will identify the current condo fee, number of units, the reserve fund amount, legal action on the unit, the unit factor amount, and the current pet bylaws.
Questions to ask before making an offer on an Edmonton Condo Foreclosure - Helpful Tips
In almost all areas of life, having the most information before making a big decision often is the difference between success or failure. In the Edmonton real estate market, making informed decisions based on solid facts and accurate information is what seperates those who find value or end up massively overpaying. Condo foreclosures can be especially tricky, as there are just so many potential unkowns that need to be investigated. First, make sure to find out whether or not a parking stall is included in the sale. If you find what looks to be a great bargain but end up having to pay hundreds of dollars a month for parking, that extra cost will add up fast. Next, if the property is titled, make sure that a REALTOR® pulls the title to verify the unit. When buying a condo, be aware that it could easily have multiple titles - parking stalls, storage locker rooms, storage catches, etc. It is also imporant to see how many units are for sale, as some units may be priced differently depending on whether or not a special assesment was paid. Look up how many condos sold in the same building over the past 12 months, while also tracking how many condos didn't sell (expired or terminated outright). If the number of successful sales are high, that is obviously a very good sign about the overall quality of the rest of the building. If sales are not, there is almost always a reason why buyers are staying away.
Calling the property manager to get additional information on the unit and building is also highly recommended. The same goes for asking other owners in the building about their experiences in the complex - most are more than happy to share both positive and negative experiences. Some basic investigative work on Google, Reddit, or Connect2Edmonton can also prove to be invaluable, as there are so many posts and threads releated to various buildings located all across the city that will give you direct access to an inside scoop. Finally, remember to inquire about any seemingly small details that could turn into major inconveniences down the road - things like securing necessary key fobs or Canada Post box access.