WHAT YOU SHOULD KNOW ABOUT BANK AND ESTATE SALES

 

Intrigued by the interest many people have about Bank & Estate Sales

but not sure what they're all about?

 

Bank Sales:

Bank Sales, or Power of Sale, are properties being sold to the benefit of the lender if the home owner fails to pay their debt on time (i.e. when a home owner defaults on their mortgage).

Many people seem to have a misconception that all bank sales are underpriced, bargains, or always a ‘great deal’. This isn’t always the case.

In Canada, when homes are sold by way of power of sale there are certain obligations which the lender/bank as to abide by - which is not always the case with a foreclosure (which only exists in the US). For example, a lender is mandated to achieve fair market value for the property. The lender is not only looking to recover what is owed to them, but they also have a duty to the owner to get the best possible price for the property. Any amount recovered over and above what is owed to the lender is then given to the owner.

Currently in Kingston, estate sales range anywhere from $79,900 - $435,000

 

Estate Sales:

The most common reason for an estate sale is the death of the property owner, and therefore family members decide to liquidate the deceased's assets - including property. They can also be necessary because of long-distance moves, divorce or bankruptcy.

You may be able to get a bargain if the sellers are unable to maintain/carry the property for a long period of time and are therefore forced to reduce the price. However, each situation is different, and fair market value for each property will also differ.

Currently in Kingston, estate sales range anywhere from $79,900 - $999,000

 

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If these types of homes do sell for less it is usually because they require work – which can range from modern updates to complete renovations. These ‘handyman specials’ are more likely what you’re looking for when thinking about a ‘bargain’. Don’t limit your searches to just ‘Bank and Estate Sales’, instead work together with your real estate professional to find these diamonds in the rough!

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Dan DaCosta

Dan DaCosta

REALTORĀ®
CENTURY 21 Champ Realty Ltd., Brokerage*
Contact Me

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