When you are looking for a property you always want to get a great deal to save money while buying your first home in Brampton. We look for many different ways to save money. One of the ways is buying a power of sale or bank sale home in 2019.
But most of the buyer does not know what a power of sale property is and how to search for these bank sale deals.
In this article, I will try to explain from my personal experience with the power of sale homes.
What is the meaning of the Power of sale?
When an owner stops paying the mortgage payment to the bank or lender, after some legal process the lender/bank takes the possession of the property from the owner.
Actually, there are 2 different ways for banks or lenders to take the property away from the owner. One is called foreclosure and the 2nd one is the power of sale. In Canada, the power of sale is the most common method being used.
Sale process under the power of sale:
Before putting the property up for sale under the power of sale, bank or lender get at least 1 or 2 different appraisals done by independent appraisal companies to asses the real value of the property.
Here, I would like to add that there was a misconception in public about the asking/sale price of these power of sale properties that lenders/banks sell these properties at the price equal to the money owed by the original owner to the banks, which is not correct. And by getting few appraisals done before listing the property they can justify in the court against the original owner in case the owner decides to go after the lender by saying that they sold the property below the actual market value.
So, why buy the power of sale at the market price?
Most of the time these properties are not in their best shape when an owner knows that they are going to lose their property to the lender or the bank, they stop taking care of the property and sometimes damage the property and take the appliances away with them. So for that fact, the market value of these properties is always considered lower than the regular properties on the market. And a bank/lender is not emotionally attached to the property do not negotiate the price the same way as a regular seller would do at the time of selling.
In most cases, the damage is only cosmetic which won't cost much in real life but an experienced realtor can use that fact to get you a bargain of the deal.
Banks have different ways of dealing with offers on these bank sale homes and if your real estate agent knows how to work through this process, he can save you a decent size amount in the purchase price when buying a power of sale house in Brampton.
How to find the Power of Sale homes?
Now we know that these are the best deals in the real estate market out there, but the question is how to search these properties? Since “legally” real estate agents or companies are not allowed to advertise any bank sale or power of sale properties as the power of sale houses, it is very very difficult for a buyer or a realtor to locate these properties. I would say Impossible for buyers and really very hard and time-consuming for an experienced real estate agent (new or inexperienced agents- no comments). And if you don’t find out quick enough about these deals chances are the quickest buyer will take advantage of that deal.
To solve this problem, we have over the years developed a system by using our experience in power of sale to find these good deals as they hit the market and to help our clients achieve their real estate goals (buying for own use or investment) we have made this system available for our clients. Anyone who chose to work with us as our real estate clients can take advantage of this system.
When you choose to work with us, we promise to make your financial success in our main mission. We have also developed a system to make anyone, financially strong with our proven formula, which many of our clients have used and currently using to grow their real estate net worth year after year with a minimum or no money from your pocket investment. We have used the same techniques to grow our own investment portfolio.
About the author of this post:
Laddi Dhillon has been working with RE/MAX since 2007 and started dealing in the power of sale in the early years of his career. Having dealt with many different scenarios in bank sale homes, he knows how to search these properties and how to get the best possible deal for his clients by negotiating with the banks/lender by following his matured negotiation techniques. Being an investor himself he knows all the ins and outs of real estate investment to help guide his clients.
Click here to search the Power of sale properties.
Note: Laddi and his team provide free one year warranty on home systems (plumbing, appliances, heating and electrical) when you buy/sell your property with their help.
Check out his reviews on different websites.
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