For the uninitiated, power of sale happens when the owner fails to pay their mortgage, and so the lender then forecloses on the property to recoup the remainder of the loan.
We’ve been seeing this happen more and more in Toronto as the cost of living increases. Also, we’ll probably see even more as 85 per cent of mortgages are up for renewal this year.
Power of sale is definitely not something anyone wants to happen, but if we have to look for a silver lining, it usually does mean significant savings for potential buyers.
The foyer leading into the living room.
Take 1 Stanwood Cres., a four-bedroom, three-bathroom home in Humbermede.
The kitchen.
This house was fully renovated in 2022 with new flooring, new fixtures, a fully updated kitchen with stainless steel appliances and new bathrooms.
The basement.
The basement had also been renovated in 2019 to transform it into a potential rental unit with a full bathroom and kitchen.
The old listing photos of the living room and dining room.
And from the old listing photos, it was a looker.
The old listing photos of the kitchen.
So it was hardly a surprise when it sold in nine days for 20 per cent over asking for $1,447,000.
The dining room and kitchen now.
Now, just three years later, the house no longer holds that same appeal.
The basement bathroom.
In 2024, 1 Stanwood Cres. was listed for $1,199,999 and then dropped its price to $1,195,000 but the deal fell through.
A bedroom.
Now, it’s been relisted for $699,000, which is $748,000 less than it was purchased for back in 2022 and over half a million less than the initial power of sale asking price.
The kitchen and dining room.
And while the Toronto real estate market didn’t have a great year in 2024, this is looking quite desperate.
The primary bedroom.
It’s curious as to why a newly renovated house isn’t selling, especially in a neighbourhood where homes typically go for around $1.2 million.
Another bedroom.
Perhaps it is because the house is currently tenanted, and you can’t evict them for a while.
A small bedroom.
Or maybe the renovation wasn’t done up to code, and it would be a costly nightmare to redo. We can only speculate as the home is being sold “as is.”
The backyard and back of the house.
But if you do your due diligence, buying 1 Stanwood Cres. could be a helluva deal.
