How to Actually Write an Offer on a Court-Ordered Sale
This is not theory.This is based on real, on-the-ground experience dealing with court-ordered sales (foreclosures) in Surrey and across the Lower Mainland.And if you’re thinking about writing an offer…👉 You need to understand this process first.
👉 You wait for the price to come to you
👉 Not for renegotiation
👉 You’re obtaining a court order
👉 High-risk purchases
👉 Timing-driven opportunitiesAnd if you don’t understand them:👉 They will burn you
Written by:
Steve Karrasch PREC
Karrasch Real Properties Team
Macdonald Realty
1. Price: Stop Lowballing
Every single offer I see:- Comes in ~$100,000 under asking
- Regardless of price range
- Banks do not negotiate like normal sellers
- Lawyers will reject low offers immediately
- You likely won’t even get a counter
- Outside ~10% of asking → ignored
- Outside ~5% → realistically dead
2. Why Banks Don’t Negotiate
It’s not about what the bank is owed.It’s about this:👉 They must prove to the court they achieved market valueThat means:- They need to show proper marketing
- They need offers close to asking
- Judges care about price vs asking, not your opinion of value
3. How Prices Actually Get Accepted
This is how it really plays out:- Listed at $1.2M → offers at $1.1M
- Price drops to $1.1M → offers at $1.0M
- Drops to $1.0M → offers at $900K
👉 You wait for the price to come to you
4. Completion & Possession
You don’t control dates.Everything is:- Based on court approval date
- Completion = X days after approval
- Possession = typically 1 day after completion
5. What’s Owed on the Property
This means nothing to you as a buyerExample:- First mortgage: $1.5M
- Second mortgage: $500K
- Sale price: $1.2M
- Costs + first mortgage get paid
- Everyone else loses
6. Strata Risks (Important)
Depends on Schedule A (lawyer terms), but generally:- Existing levies → usually paid
- Approved but not due → may fall on you
- Future levies → 100% your problem
7. “As Is, Where Is”
This is critical.You are buying the property:👉 Exactly as it exists on possession dayExtreme example:- House burns down before completion
👉 You still close
- Owner damages property before leaving
👉 You still close
8. Occupancy Risk
Best case:- Vacant property
- Owner refuses to leave
- Tenant complications
- Court action required
- Delays
- Legal costs
- Bailiff involvement
9. Chattels & Fixtures
Nothing is guaranteed.- Fridge? Gone
- Stove? Gone
- Curtains? Gone
- Even fixtures? Maybe gone
10. Can You Add Terms?
Short answer:👉 NoWhat happens:- Lawyers cross out almost everything
- Only their Schedule A survives
11. Conditions (Only at the Start)
If you are the first accepted offer:You may include:- Financing
- Inspection
- Insurance
- Title review
👉 Not for renegotiation
12. No Assignments. No Changes.
- No assignment clauses allowed
- No adding/removing buyers later
- Names must be exact from the start
👉 You’re obtaining a court order
13. The Court Process (Where It Gets Real)
Once your offer is accepted:- Court date is set
- Other buyers are notified
- Competing bids appear
- All offers must be subject-free
- All bidders bring deposits
- Original buyer can revise
- Usually highest price
- Sometimes not
14. If You Win
- No “subject removal” period
- Court order = final
- Closing could be 10–30 days
15. If You Lose
- Deposit returned
- You walk away
16. The Most Important Rule
Get legal advice.Always.- These are high-risk transactions
- They are not for average buyers
- Even experienced buyers get burned
Final Takeaway
Court-ordered sales are not:- Easy deals
- Big discounts
- Simple transactions
👉 High-risk purchases
👉 Timing-driven opportunitiesAnd if you don’t understand them:👉 They will burn you
Written by:
Steve Karrasch PREC
Karrasch Real Properties Team
Macdonald Realty