The Truth About Power of Sale Homes in Georgetown, ON: Are They Really a Good Deal?

In Georgetown and across Ontario, Power of Sale listings often catch the attention of buyers looking for a bargain. The idea of purchasing a discounted property can be appealing—but the reality is far more complex. As a long-time Georgetown Realtor with extensive experience navigating these transactions, I guide buyers through the risks, fine print, and expectations so they’re protected every step of the way.

What Is a Power of Sale?

A Power of Sale occurs when a lender takes control of a property because the homeowner has fallen behind on mortgage payments. Unlike a foreclosure (more common in the U.S.), the borrower in Ontario still technically owns the property until closing, and the lender’s goal is simply to recover what is owed as quickly as possible.

This urgency often leads buyers to believe they’re getting a “deal”—but Power of Sale properties are not always the bargain they appear to be.

Why Power of Sale Homes Aren’t Always a Good Deal

One of the biggest misconceptions is that banks list these homes at significantly below-market prices. In reality, lenders must demonstrate they’ve tried to obtain fair market value, which means the pricing is rarely dramatically lower than comparable homes in Georgetown.

On top of that, every Power of Sale property is sold strictly in “as-is, where-is” condition. This means:

• No warranties on the condition of the home

• No guarantee that appliances, major systems, or utilities work

• No assurance that the home is free of damage, liens, or unwanted items left behind

Buyers must be prepared to take on the full risk—often without the ability to negotiate repairs or credits.

The Hidden Risk: The Homeowner Can Still Redeem the Property

Another factor buyers often overlook is the homeowner’s right of redemption. Until the day of closing, the original owner can come up with the outstanding funds and reclaim the property. While this situation is extremely rare—most homeowners are months behind and have already moved on—it is still legally possible. If this happens, the lender cancels the sale, and the buyer must restart their search.

Why You Need Expert Guidance

Power of Sale transactions require heightened due diligence, strong market knowledge, and a Realtor who understands the unique risks involved. As a long-time Georgetown resident and experienced local Realtor, I help my clients assess whether a Power of Sale property is truly worth pursuing—or whether a traditional listing offers better value and less risk.

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If you’d like support navigating Power of Sale opportunities in Georgetown or want to explore safer options, I’m here to guide you with clarity, experience, and confidence.

Shelly Williamson

Real Estate Agent

Real Broker Ontario Ltd., Brokerage

416-878-2235