Should you buy before selling? Should you say yes to the broker who offers you (not very subtly) to skip the inspection? What is the budget limit not to be exceeded in a context of overbidding? Guide of the perfect buyer and the very good seller.
Posted at 12:00 p.m.
give yourself time
“The problem in this market, which remains very active, is not to sell,” explains real estate broker Mike Cyr. The real challenge is to find a property that suits us, within the desired timeframe, at an acceptable price. »
No wonder he recommends his selling clients to take the initiative, and above all, not to wait until they have sold to start looking for their next property.
“It boils down to that,” he agrees. You have to start the process [d’acquisition] right now if we want to hope to have a roof where to stay for the 1er next July! »
To be accompanied
And what about buyers, especially those who want to buy property? What strategy should they adopt to avoid getting stuck in the water at the end of spring?
“They have every interest in being accompanied by a broker they can trust,” explains Mike Cyr, active in the Eastern Townships market. One way is to sign a buyer’s brokerage contract. »
He specifies that this way of proceeding, contrary to certain claims, does not entail any costs for the buying customers. “The goal is to have a broker who works in your interest,” he says.
PHOTO DAVID BOILY, LA PRESSE ARCHIVES
Properties continue to sell at higher prices and sometimes you have to act quickly.
The key: speed!
It’s no secret that properties continue to sell at high prices, sometimes even more than $100,000 above the list price. In such a context, the key to a successful transaction remains the speed of action. And it goes far beyond mortgage pre-approval…
“It’s much easier to get there when our clients follow our advice,” says Annie Descôteaux, real estate broker at Royal LePage. But sometimes people are hesitant, for all sorts of reasons. »
She agrees that it is a little more difficult for first-time buyers, who will express many fears during the process. “They put a lot of conditions, like replacing the water heater, when they submit the offer to purchase [et ça peut faire avorter la transaction] “, she summarizes.
These buyers, she observes, are often tenants. They have to decide whether to renew their lease or sublet their home, which adds to the stress of the negotiation.
The big end of the stick
Annie Descôteaux, who is active in the Lanaudière market, notes, unsurprisingly, that sellers still have “the big end of the stick”. And they have “a lot of expectations”, recognizes the broker.
There is the price they want for their “exceptional house”. There is also the commission rate — more or less 5% — which they want to lower.
” It’s correct. I would probably do the same if I were in their shoes,” she admits.
At a rate of 5%, let us specify that the commission to be paid when selling a property of $600,000 will reach $30,000.
While agreeing that his job is to sell properties, Ms.me Descôteaux makes it clear that it feels “responsible” towards its clients when it “takes a mandate”. ” [Avec la surchauffe immobilière], I want to make sure they can find another property after they sell theirs. »
PHOTO ALAIN ROBERGE, LA PRESSE ARCHIVES
A house also has additional maintenance costs.
The ability to pay
With prices exploding — median price of $541,000 for single-family homes and $381,000 for condos (source: APCIQ, January 2022) — there is no need to specify that it is important to measure one’s ability to pay to access to the property, or even to move to a bigger house.
“We have to respect the budget that we have set, and not go beyond that,” emphasizes Sandra Allard, who heads the mortgage brokerage firm Planiprêt. Each case is unique. Every story is different. »
It also assumes that buyers “must not just negotiate a rate [d’intérêt] mortgage,” she notes.
“But I find that borrowers don’t have all the information to make an informed decision,” she says. For example, there may be constraints associated with choosing a fixed rate [sur trois ou cinq ans]. In my practice, one out of two clients renegotiates their mortgage before term, either because of separation or because major work is required. »
PHOTO HUGO-SÉBASTIEN AUBERT, LA PRESSE ARCHIVES
The buyer must demand the inspection of the coveted property even if the situation is sometimes urgent.
A castle… or a horror story?
Be that as it may, we must never lose sight of the fact that buying a property comes with costs, which can mortgage the finances of owner-occupiers, reminds Sandra Allard. Hence the importance of not relying solely on the criteria of lending institutions that calculate the debt ratio, each in their own way.
Illness, loss of a job, the car that has just given up the ghost…
Paying the mortgage is one thing. Respecting all your obligations, and even those that you hadn’t foreseen, is another.
“A castle can become a financial horror story,” warns the financing specialist.
We will have understood, in this warning, that it would be a very bad idea not to require the inspection of the coveted property, for fear that it slips through our fingers. Even in such an effervescent market where sellers no longer hesitate to include in the description sheet: “Without legal warranty, at the risk and peril of the buyer”, says Sandra Allard.