Everyone is on the hunt for a great deal these days, and in real estate, purchasing a 'power of sale' property at a bargain price is considered an excellent opportunity. Many people use this strategy to build their wealth, but finding such deals can be challenging. Because so many are on the lookout for power of sale properties, these deals can disappear quickly, often before you even notice them. So, how can you successfully buy a power of sale house in Brampton or Mississauga?
1. Work with a Full-Time Realtor
To increase your chances of finding a power of sale property, it's crucial to work with a dedicated realtor. Realtors have access to Toronto MLS, an exclusive, password-protected website where new listings appear first. This gives them an edge in getting detailed information about properties as soon as they become available. A full-time realtor will monitor market trends continuously and provide you with timely updates, unlike part-time agents who may have other commitments.
2. Understand the Market
It’s beneficial to be familiar with recent market statistics to evaluate if a property is genuinely a good deal or just priced at market value because it's being sold by the bank. A realtor can help you assess the property’s true market value using their expertise and comprehensive database.
3. Show Commitment
It’s common to see potential buyers contacting various realtors without showing real commitment. This approach often results in missed opportunities. A dedicated realtor is more likely to go the extra mile for a committed client, so demonstrating seriousness can help you secure the best deals.
4. Evaluate Repair Costs
Power of sale properties are often sold in 'as is' condition and may require significant repairs. It's important to have an understanding of potential repair and renovation costs before making an offer. This allows you to adjust your offer price accordingly and avoid unexpected expenses.
5. Get a Professional Home Inspection
Since power of sale properties are sold as-is, it's vital to have a professional home inspection conducted before finalizing the deal. This helps identify any major defects that could result in costly repairs, ensuring that a seemingly good deal doesn't turn into a financial burden.
6. Secure Financing
Having your financing in place before making an offer is essential. Banks prefer offers from buyers who have already obtained financing, especially when multiple offers are on the table. Get pre-approved by a bank or a qualified mortgage broker to ensure you’re prepared.
7. Consult a Lawyer
A good lawyer is crucial for reviewing the agreement of purchase and sale. Banks may alter standard agreements to their advantage, so having legal expertise can help ensure that the contract is fair and that your interests are protected.
Purchasing a power of sale or foreclosure property can be complex, but working with an expert can make the process much smoother. Happy house hunting!
