Power of Sale, what you need to know before you buy. by Diane Plant, Broker

Use a Realtor. Power of Sales are usually listed on MLS with a Realtor. It is often a very lengthy process to work an offer of this kind of transaction. You might think you are getting a great deal, but the bank has had the home appraised and they usually try to stick close to that appraised amount when negotiating an offer. They will keep that price for a specific amount of time and then reduce it, only slightly, if it has not sold in that time frame.

Inspect ! Inspect! Inspect!. Often a Power of Sale is left in a very messy condition. The bank will not sign off on warrantying the appliances, electrical, foundation, structure, plumbing, etc. Your home inspection will be your only means of knowing if you are buying a money pit and how much you are willing to repair, if necessary. The inspection can not tell you anything about what is hiden beneath the wall.


Buying a Home Listed On MLS with the Home Owner. Home prices have been adjusted downward from 2008. These homes will be priced in the same area as Power of Sale. Banks are not willing to "give away" the home under Power of Sale. Banks have to try and recoup their losses. Sellers must answer any questions you have about anything structural, electrical, plumbing, appliances, etc., banks will not not off on anything reguarding the state of the home. You are buying "as is", Caveat Emptor-Buyer be Ware.

If you are buying, selling or relocating to Toronto and need help from a professional REALTOR®, who is WORKING FOR YOU give me a call (416) 488-7875 and ask for Diane Plant or visit my website. I know Toronto.