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

Get Representation. Dealing directly with the bank is extremely risky. If you are going to be looking at foreclosures, find an agent you trust and sign a buyer’s representation contract. Then that REALTOR is working for you! When I represent a buyer, it costs nothing to that buyer because my commission is paid for by the seller. I can help a buyer understand if the list price by the bank is a fair price for the property and in its current condition.

When you find that perfect foreclosure, I, as your agent, assist you in putting together the best offer for the situation and negotiate on your behalf. Good homes are seeing multiple offers. If you find an almost perfect foreclosure, chances are several other buyers will like the home too. A listing agent is working for the bank. Don’t you think you deserve to have a professional REALTOR working directly for you?

Get Ready to Waive Goodbye to your Right to a Disclosure. Ontario does not require that the seller of a home disclose all known defects to the property. The banks will require you to sign a waiver to the disclosure where you will waive your rights to receiving a homeowner’s disclosure. This is not negotiable as the bank representative did not live at the home and does not have any way of knowing the condition of the property.

Inspections are Critical. Buying a foreclosed home means buying a home in AS-IS condition. That means the bank will not warranty that anything in the home is working and will not make repairs to any part of the home. A complete home inspection is designed to give you a picture of the current condition of the property and if any major repairs will be required to make the home habitable.

The additional expenses to Repair and Maintain. You might have made a great deal in buying the foreclosure, but what condition is it in. The inspection can only see what is visible, not hidden. The bank has given you the mortgage but have you factored in the additional costs to repair a home that was neglected. What if the furnace breaks down, the roof leaks, the appliances that seemed to be in good working order were really on their last legs?

Don’t Overlook Traditional Sellers. Homes being sold by a traditional home seller in this buyer's market are in most cases priced to sell! This is good news buyers. Sellers understand they are competing with banks that have only a financial not emotional interest in the property. So homeowners needing to sell have to check their emotions at the door and price their home accordingly. A lovingly maintained property with where a seller is obligated to answer your questions about any leaks, mould, age of appliances, exhisting warranties, etc., at a rock bottom price could still be the best deal for a buyer.

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.