Power of Sale and Contract Clauses: A Lower Price Is Not Always a Better Deal

A lower purchase price does not automatically mean a better investment.

Softer prices are bringing more buyers into the market, especially first-time buyers. Many are looking at Power of Sale properties, hoping for a bargain. These deals can carry real risks:

• Limited or no disclosure about the property.

• "As-is" sales with no warranties from the seller.

• Repair costs that only show up after closing.

• Lender schedules that limit the buyer's rights.

I also see buyers sign agreements with clauses that work against them. Common ones are no financing or inspection condition, no right to visit before closing, and short deadlines that leave no time to review. In a competitive market, the focus tends to be on price, while the terms can have a bigger financial impact.

The right property is not always the cheapest one. It is the one that makes sense, financially and legally, for your long-term goals.