Category Archives: Real Estate 101

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Win-Win Negotiation

What do you think is the ultimate goal when negotiating a property purchase? Is it that the buyer does everything in his or her power to get the lowest possible price? Or, is it that the seller gives his or her maximum effort to get the highest possible price? Or, is it none of these answers?

One day, a retired multimillionaire businessman told us what he missed the most about negotiating. His greatest satisfaction was to conclude an agreement where both parties were content. That is exactly what property buyers and sellers should aim for: closing a win-win negotiation.

It is useless for buyers to push sellers against the wall and force them to give up their property for an unsuitable price. This attitude rarely leads to good results. Conscientious buyers not only think about their own interests, but they also think about the sellers’ satisfaction. Continue reading

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Thinking About Buying a Condo: Think Twice!

It seems that everyone is buying a condo these days. This way of living has never been so popular. Perhaps you are thinking about buying one? Here are a few questions you should ask yourself before you start your research.

Be as honest as possible with yourself and know the specific reason why you are considering to buy a condo. Are you looking for fewer responsibilities? Are you feeling a little lonely living in a single home and would rather live a collective life in a condo? Are you growing a little weaker as the years go by? Have you reached a moment in your life where you would prefer facing the unexpected in a team rather than alone or as a couple? Is it more cost-effective for you to sell your home and buy a condo instead? As a tenant, would you rather own a financial asset as quickly as possible? The more precise and candid the answers to these questions are, the more fruitful and short-lived your research will be. That is if ever you actually decide to make the move. Continue reading

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Which Property Should You Choose?

Sometimes, buyers are faced with a difficult decision. They have already crossed out a large number of properties on their list, but two or three are still remaining. Now for the final elimination round. Which property will it be? Need some advice?

  • Ask your real estate broker. If your home search process was rather long, your savvy broker was able to identify your needs and personality because he or she has gotten to know you.
  • You would be willing to live with some constraints. Others, not at all! They would make your everyday life miserable. Learn to recognize them. Be honest with yourself.

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Evidence to Negotiate More Effectively

Nowadays, buyers are lucky. They can search the web to get data on a desired property. They can then count on experts, such as the real estate broker, to obtain more data to bridge their knowledge gap. Having all the data on hand is the lifeblood of negotiation.

Some buyers use intimidation and tenacity to reduce the price of a property. When, in fact, raising your voice, constantly criticizing, and acting up are ineffective methods. All these attitudes lead to confrontation.

The buyer’s most persuasive argument remains his or her knowledge of a property’s data. The more the buyer knows about the property, the more negotiation power he or she will have over the seller, especially if the selling owner is unprepared. Continue reading

How Much Is Your House Worth?

Homeowners who wish to sell their home or condo should know the fair value of their property to set the selling price and to negotiate more effectively. Sometimes, homeowners will set the price according to their own calculations. This method is feasible, but not foolproof.

Many people rely on the municipal assessment to set their property’s market value. Bad idea. The real estate market evolves every day, whereas the municipal assessment services, bound by bureaucracy, are slower. Consequently, there is a gap between the fair price of the property and the municipal assessment. Oftentimes, this assessment is inferior to the true property price. The municipal assessment reflects the fair value of the property, but not the value itself.

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Some rely on a very popular practice: finding a property that is similar to theirs that has been sold, not too long ago, in the same neighbourhood. The property must be, if possible, identical or nearly the same. Same type of home, same year of construction, same living space, same lot size, same outdoor layout (pool and other installations), etc. Continue reading