Real Estate Blog

There are pros and cons to purchasing a bank owned property in Saskatchewan. It can be hard to decide if this is the right option for you. On the one hand, buying a bank owned property can be a great way to get a good deal on a home. However, there are some risks involved that you need to be aware of. Let's take a closer look at both sides of the issue!

Pro: Lenders are eager to recuperate their loss and will want to sell the property quickly

The properties are often vacant and can accommodate a quicker possession date.

Con: There is often little or no negotiating room

When it comes to the purchase price of foreclosed properties, the lender will want to sell the property for as much as possible in order to recoup their losses. Especially in larger centres foreclosed homes are priced at market value, so don't expect to find the rock bottom prices they show on American television! 

Pro: You may still be able to get a good deal on the property

If you're lucky, you may be able to find a bank owned property that is priced below market value, particularly in smaller towns. This could give you some extra room in your budget to make repairs or renovations that are needed.

Con: The home may need repairs

Foreclosed properties are usually sold as-is, which means that any repairs or renovations that are needed will be your responsibility. Before making an offer, it's important to have a professional home inspection done to assess the condition of the property and estimate the cost of any necessary repairs.

Pro: You could get a deal on a property in a desirable neighbourhood

If you're looking for a home in a specific neighbourhood that is in high demand, purchasing a bank owned property could yield a slightly better price. The homes are sold "as is" meaning it will not be cleaned and any items left behind will be your responsibility to deal with.

Con: The home may have been neglected or vandalized

One of the risks of purchasing a foreclosed property is that you don't know how well the previous owner took care of it. If the property has been neglected, this could mean that there are hidden issues that will need to be addressed. Vandalism is also a possibility, which can be costly to repair. 

If you're considering purchasing a bank owned property in Saskatchewan, it's important to weigh the pros and cons carefully and rely on the help of a licensed REALTOR® and professional home inspector. There are some deals to be had, but there are also plenty of risks involved. Be sure to do your research and get professional help before making any decisions!