Kelowna Foreclosures market has been busy this year and the supply of foreclosure properties is declining. Presently there are 42 Kelowna homes in foreclosure for sale which is a 7 month inventory. The highest total on the market this year was in February with 67 homes actively listed for sale.
There are 18 Kelowna condos and townhomes in foreclosure, down from February 2013 total of 28 and February 2012 there were a total of 83 condos listed for sale. As our market becomes more stable the number of foreclosure properties will continue to decrease in 2014.
In 2013 there were 140 Kelowna foreclosure homes sold with the majority of court order sale houses sold between $200,000 to $400,000. For Kelowna condos and townhomes in foreclosure a total of 49 sold with the majority sold for under $200,000. The highest Kelowna condo sold price was $1,625,000
Buying a Kelowna Foreclosure can be an exciting experience if you understand the upside and downside to Court Order sales.
An important tip to buying a foreclosure is to know the area well, be knowledgably about comparable sales. This will help you to determine the correct offering price. You must be able to estimate the cost of repairs required to make the home in comparable condition to other sold homes in the neighbourhood. You will also have to calculate the cost of buying appliances as the one s in the house cannot be written in the contract and usually disappear when the former owner moves out. In order to arrive at the best price to offer you take the market value as if it was in good condition, minus the cost of repairs and purchase of appliances.. This is a challenging calculation, which make working with a Realtor whom is experienced in Foreclosure sales and working on your behalf and not on the lenders behalf. There a Foreclosure course that Realtors can take to better their Foreclosure skills and guide their client through the legalities.
You can arrange to view foreclosure homes or condos through a Buyers Agent. Sometimes the properties are vacant and sometimes they will be tenanted (often by the previous owner)
When you find a property that you want to make an offer your Realtor for the comparables. The offer is written, preferably with conditions, signed by the prospective buyer and presented to the bank or lender. When the offer is accepted you have approximately 10 days to remove your conditions such as home inspections, financing, check with the city for Zoning, have your lawyer review the title, etc. There could be several more conditions depending on the property and this is where your Realtor will advise you. The lender usually has a condition Subject to Court Approval
After you remove your conditions the lender will obtain a court date, approximately 2-3 weeks. When you go to court (or have your representative appear for you) you must be prepared for any number of things happening and one of these is that there could be competing offers in court for the same property. This is where experience can make a big difference on whether the court awards you the property or not.
Not all foreclosures are created equally and buyer beware.
Some of the best deals are just before the property goes into foreclosure. If you are looking for a DEAL it is recommended to also consider other properties in the same price range in the same area.
If you are receiving our list of Kelowna Foreclosures take the time to let us know the price range and area you are looking for and we can customize what is being sent to you
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Happy New Year!,
Smith McLellan Group-Royal LePage Kelowna