“There is never a single fixed price. Every property has both a floor and ceiling price,” says Patrick Juanéda, President of the Québec Federation of Real Estate Boards (FCIQ). On one hand, the seller wants to close the deal and obtain the amount closest to the ceiling price. While on the other, the buyer wants to pay something closer to the floor price. Irreconcilable differences? Not at all. Finding common ground is entirely possible, and that’s what successful negotiating is all about.
The power of negotiation
“The price is always negotiable,” says Mr. Juanéda. Expect the average reduction percentage to be from 2 to 3%.”
The real estate expert does stress however that each situation is unique: “If a house is listed at a “good price” (near the floor price) and it’s located in an active market (single family homes around $300,000, for example) overbidding can’t be ruled out. Do you really want to miss out to save a few thousand dollars?”
On the other hand, you have more room to manoeuver with a property that has been on the market for over six months and seen little activity.
Recognizing various scenarios forms the basis of any negotiation. A qualified real estate agent has the experience and instinct to guide the buyer. Without one, you’d have to study the local house listings and visit a lot of properties to develop a flair for negotiation. Continue reading
Is buying a vacation property right for me?
6 questions to ask before making a move.
As the weather warms up, a cottage by the lake may sound appealing ― but is owning a second home right for you? If you’re looking to purchase a place, prices will vary greatly depending on where you’re searching.
There are several important factors to consider before purchasing a vacation home, so don’t let the allure of a lake breeze or the excitement of water sports keep you from thinking it through. First, ask yourself these six questions: Continue reading
Buying your first home as a couple? Check out these six tips.
Become a savvy home-buying duo.
Are you and your partner gearing up to be first-time homebuyers? You aren’t alone.
With real estate prices on the rise, taking on a mortgage payment as a couple may be more realistic than attempting to buy independently.
You may also find the process intimidating ― but fear not. Take note of these six tips that will help you and your partner be properly equipped to make the biggest purchase of your life: Continue reading
ADVICES FROM DESJARDINS
In addition to calling upon a realtor for the purchase of your home, here are some tips provided by homeowners.
- Think about the future
It’s essential to consider your needs, lifestyle and financial resources when choosing location. Because after many years, there’s nothing better than truly feeling at home!
- Save up a good down payment
Wait until you have a decent down payment from your personal assets so you can get a reasonable mortgage and cover the 3% to 5% start-up costs. About 88% of buyers manage to do it by using their personal savings, including RRSPs and investments. About 41% of buyers save up a down payment of at least 20%; for 31%, it’s between 5% and 19%.
- Look into the HBP
The Home Buyers’ Plan (HBP) is a government program that allows you to withdraw up to $25,000 from your RRSP (per person) to buy or build a home. You have up to 15 years to pay it back interest-free.
- Do the math
Get preapproved for a mortgage so you can determine your budget and narrow your search to properties that meet your criteria.
Buy a house in a neighbourhood that’s going up in value and focus on the value of the land. What criteria should you consider to evaluate the area’s economic situation? Proximity and diversity of businesses and public services (e.g., schools, daycares, parks, hospitals, public transit) are good examples.
On the not-so-good side, here’s what they reported:
- Skipping the home inspection
- Underestimating the time and cost of renovations
- Accepting a purchase offer with a closing day that doesn’t leave you enough time to find a new home
- Not dealing with a mortgage broker
- Not insisting that the former owners clear out the house completely before you move in
To find out more about the housing sector, visit www.desjardins.com/home. You can also contact a Desjardins mortgage representative at 1-844-626-2476.
According to Jonathan Haziza, a product manager for mortgage solutions at National Bank, the scale of the costs linked to buying a property tend to be underestimated by first-time buyers. So without further ado, here are some expenses to keep in mind for a realistic portrait of what lies ahead.
Your financial institution may ask for an evaluation of the property’s market worth. This happens when the cost is steep or the property contains various risk factors. Requesting an appraisal is a means of protection: either to ensure that payments won’t be above your means, or to verify that the property is truly worth what you’re about to pay. You’ll therefore need to hire an appraiser to produce the necessary documents.
Hiring a building inspector to check for hidden defects in pre-existing houses is crucial. This will help you avoid bad surprises that could cost you a lot; you’ll have peace of mind knowing that everything is as it should be. Continue reading