This blog is about me, Paige Guernsey, and the things that happen around my job as a Kelowna Real Estate agent with Coldwell Banker Horizon Realty. I talk about listings, sales activity, market conditions, market trends, promotions, green real estate, and sometimes funny things that happen to me during the course of my day. There's links and videos to great information as well as access to my 2 websites, kelownahome.com and greenkelownarealestate.com
There are many misconceptions in the buying public regarding a foreclosure. Most think you can get a price on a house that’s far below market value. Not always so.
4 MAJOR STEPS
1) Know what you’re getting into
2) Getting your offer accepted
3) Court Acceptance
4) Possession
KNOW WHAT YOUR GETTING INTO
The Bank of Canada requires that foreclosing banks attempt to get the most amount of money for each property. This involves appraisals and real estate agents with market evaluations. Homes that are well kept and/or vacant will usually receive a value close to the other homes in the neighborhood. If the home is in poor condition, this too will be reflected in “market value”. I can help you determine what the best market value for any given property is, regardless if it’s a foreclosure or not.
Buying a foreclosure involves a Contract of Purchase and Sale and a Schedule A. The Schedule A spells out that the property is being purchased “as is where is” and that the bank does not make any representations or warranties about the house. This paperwork is very different than a regular arms length transaction in what we’ll call a “normal” transaction between a buyer and a seller. You should read it carefully and have a very clear picture of what “as is where is” means.
GETTING YOUR OFFER ACCEPTED
Working with a bank on offers usually takes quite a bit longer than working with a seller who’s looking to sell the home they are living in. Consider there may be a time difference and different levels of management the paperwork has to go through before any type of acceptance or counter offer is made. Also, banks are generally closed on the weekends. Banks generally get “low ball” offers and most often there is a lot of negotiating back and forth before price and terms are met that are mutually agreeable. They don’t like to see a lot of “subjects” but it is possible to get an offer accepted with some subjects. Any offer made to a bank on a piece of real estate has to also be “subject to court approval”. This is because the court has the final say if an offer is accepted.
After your offer is accepted, and your subjects are removed, it’s filed at the appropriate law court and becomes public knowledge. Most Kelowna foreclosures happen at the Kelowna Law Courts, but sometimes they’re in Kamloops or Vancouver. A court date is set after this step, and is most often about 2-5 weeks after the filing.
COURT ACCEPTANCE
On the day of court, I would HIGHLY recommend that you attend with your realtor. Often other buyers will attend court with a sealed bid to present to the presiding Master. These buyers will also have taken the time to check the court filing to find out the accepted offer price and usually their offer price will be higher. This means that there are “competing bids” and if you’re wishing to be the successful bidder then you will have an opportunity to change your original offer.
The Master has the final say on which bid to accept and not only will be looking for the best offer price, but a sizeable deposit made by way of certified cheque or bank draft attached to the offer. For possession, a successful bidders Contract of Purchase and Sale will usually read a certain number of days after court approval. For instance, it’s advisable to put “10 BUSINESS DAYS AFTER COURT APPROVAL” on the contract for Completion, Possession, and Adjustment dates. This allows for regular banking hours and weekends.
POSSESSION
After all that, moving day is here! Earlier we talked about the Schedule A and that there are no representations or warranties made by the bank. Although moving in on possession dates usually go smoothly and hold no surprises, it’s imperative to understand that there is the possibility that the house won’t look the same as when you viewed it last. Occasionally disgruntled homeowners may do damage on moving out or take unexpected things like kitchen cabinets!
With so many details surrounding foreclosures, it’s critical to work with someone who knows the process. If you’re considering purchasing a Kelowna real estate foreclosure, call Paige Guernsey direct at 250-862-6464. With many years experience around foreclosures and court ordered sales I can help you navigate the sometimes bumpty waters to a successful conclusion! If you’d like a list of current homes for sale in Kelowna that are under foreclosure, send me an email at paige@kelownahome.com.
First timers and move up buyers till lead the pack of purchasers heading for the finish line.
(Click on the image to enlarge).
The segment showing investors and buyers looking at recreational property has been slowly growing and last month was a solid 20% of home buyers in Kelowna. Check out my last couple blogs dealing with investments and recreational properties.
Looking to invest or buy some recreational property? With 25 years experience in Kelowna real estate, I can help find the perfect property for you. Call Paige Guernsey direct at 250-862-6464 today.
For a few years, my family would make the big trek north to a beautiful little island called Savary. To get there took a long time and finally when you couldn’t drive any further in Lund, BC you’d load up the water taxi for the final leg to the shores of this island made mostly of sand. The island is about a kilometer wide and 8 km from one end to the other. There were no cars allowed on the island (although there were a few… maybe 3!) and the only wildlife was deer and bees. Bikes were used as the main source of transportation and power was by propane. The cabin we stayed in was fantastic. Tucked into the woods, the large open plan could easily accomodate the 6 of us. We had a good sized kitchen 3 bedrooms, 1 bathroom, a loft and a huge deck outside.
WHAT ABOUT OKANAGAN WATERFRONT FOR $350k
I’m sharing all this because recently I came across a lot currently available to buy on Kalamalka Lake in Vernon. This lot also has a dock attached and in the summer, the dock is really the only thing that’s important! A beautiful and scenic drive from downtown Vernon takes about a half hour. Power is by way of propane and water is lake intake. This beautiful spot reminds me so much of Savary Island.
Away from the hustle and bustle – YES
Waterfront property on a large, clean lake – YES
Can I swim and waterski – YES
Is there a dock – YES
Close to big city ammenties – YES
Can I think of a good reason to seriously look at buying this – YES
Are you considering a recreational property ? Call me, Paige Guernsey, a full time experienced realtor in the Okanagan Valley on my direct line. 250-862-6464.
I’ve been working with an investor looking for the ultimate investment… one that pays for itself. We just wrapped up the paperwork and they’re the proud new owners of a gorgeous townhouse with a built in tenant! In my work as a Kelowna real estate agent, I come across some interesting property with medium to long term goals and the possibility of substantial gains.
Waterfront Possibilities
It wasn’t that long ago that waterfront property on Okanagan Lake was well under the $500,000 mark.
ABBOTT STREET
In 1999-2000, waterfront Kelowna homes were selling on Abbott Street for between $400 – $500,000. Today, homes in the same area on Abbott street have been selling for between $2.5 and $5 million dollars!
This home is on Manhattan Avenue and currently for sale at $370,000. It’s in a cozy waterfront neighbourhood in Kelowna’s North end. Being an area of older homes, visionaries have been buying, renovating or re-building on Manhattan, and creating an entirely new neighborhood in this growing and changing part of Kelowna. Newer, larger homes on Manhattan and right on Lake Okanagan, have been selling recently for between $1.3 and $1.55 million. Close to Knox Mountain and the secluded Poplar Point, living here means you can walk or bike most everywhere. A few blocks away from the downtown core of Kelowna, you’ve got easy access to the growing cultural district, Prospera Place for hockey games and concerts, Kelowna Art Galleries and Museums, as well as some of the best restaurants in town!
ANOTHER HIDDEN GEM
Years ago I worked with an investor on this property very close to Manhattan Avenue. Real estate prices were quite a bit higher then and the numbers didn’t quite work for my client. It’s for sale again. To buy this, rent it out, and watch the neighbourhood change in the medium to long term range (5-10 years) could be an amazing opportunity to capture real estate equity for your financial portfolio.
Looking for an investment opportunity in Kelowna and a good real estate agent who can help? Call me, Paige Guernsey, at 250-862-6464.
Recently a full side by side duplex sold on Highland Avenue in the Glenmore neighborhood of Kelowna. I analysed this property for investors and found there was potential to make a profit. The profit would involve renovating, stratifying, and selling each side separately. Check this video out and see how we did it.
If you’re wondering about investing in Kelowna real estate, call Paige Guernsey, an experienced Kelowna realtor for 24 years on my direct line at 250-862-6464.
There are many misconceptions in the buying public regarding a foreclosure. Most think you can get a price on a house that’s far below market value. Not always so.
On the day of court, I would HIGHLY recommend that you attend with your realtor. Often other buyers will attend court with a sealed bid to present to the presiding Master. These buyers will also have taken the time to check the court filing to find out the accepted offer price and usually their offer price will be higher. This means that there are “competing bids” and if you’re wishing to be the successful bidder then you will have an opportunity to change your original offer.
After all that, moving day is here! Earlier we talked about the Schedule A and that there are no representations or warranties made by the bank. Although moving in on possession dates usually go smoothly and hold no surprises, it’s imperative to understand that there is the possibility that the house won’t look the same as when you viewed it last. Occasionally disgruntled homeowners may do damage on moving out or take unexpected things like kitchen cabinets!
