In today’s real estate market, “Power of Sale” listings are more important than ever. Whether you are buying or selling overlooking these sales could be a very costly mistake.
Often thought of as run down fixer uppers, these properties are not necessarily in need of work at all(however the nice ones move really fast often sold before the general public knows they were ever on the market).
As an example, I recently put together an offer for a client on a really nice home, it had been on the market for a while and I was familiar with its history. Very suddenly a friend called me and said “hey you had better check out that house I noticed white papers on the windows and the realtor sign was being changed as I drove by.”, I called immediately to go and preview the property. The listing agent did not have it listed on MLS(most of the good power of sales never make it to MLS) and was not even sure of the lock box combination yet. When I called she warned me there was an offer in place already, which did not surprise me.. after all this was an amazing home at a very discounted asking price. This is where, in my experience things become odd with some realtors and it takes an agent that is willing to go to work in an extreme hurry for you. I showed it to my client and had a competitive offer in place within hours.
Many times I’ve heard friends and clients tell of previous experiences where the story of the power of sale ends with “the listing agent already has an offer”. The fact of the matter is that all offers presented to the listing agent must be presented to the seller until such a time as an offer has been accepted. Until an offer has been accepted that home is still fair game.
If you are looking to buy, the things to know are:
- · Be ready, have your finances in place
- · Be prepared to move fast
- · Make a solid offer
- · Inspect it(Have a Home Inspection done) thoroughly… it is being sold as is
- · Limit your conditions (You are taking a risk.. but with power of sales its always “AS IS”) your normal schedule B covers the seller for about everything and a lower offer with no conditions will almost always win.
If you are currently selling or in a position where you MUST sell, you should be aware:
- · These properties are not uncommon
- · If you are next door asking$ 50,000 more… well think about it
- · Almost all power of sales were on the market for a long time overpriced before the bank relisted it
Adrian King email@example.com Cell# 705 559 7297