Tag Archives: property

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How to negotiate a property purchase

“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

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A Guide to Group Buying

Has the thought of buying a property with someone else or with a few people ever crossed your mind? It’s actually possible, but the experience requires discipline.

Buying a property collectively with a relative, either a friend or a family member, is often the ideal solution, especially since access to a property appears to be getting sparse these days. The constraints are numerous: a tightening of mortgage rules, a record high in household debts and difficulties in establishing a budget.

It’s a simple matter of mathematics. The more people are paying for a property, the lesser the amount each one has to pay for it. However, as any other joint enterprise, there are risks. Several things must be taken care of, such as contribution amounts, task distribution as well as the temperament of each and every one.

Hence, the importance of sticking to a protocol, not only to achieve the ultimate goal, which is buying a property, but also to prevent the relationships between the co-owners from going sour.

Erica Nielson, from the RBC Bank, offers advice to help you make your group purchase a success and not a source of problems.

Here is precisely her advice: Continue reading

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We will live on bridges

The statement is taken from a book that contains the predictions of a French scientific committee and it’s serious.

Baby boomers will not live on bridges, but their children might. At least according to the book Les 50 innovations qui vont bouleverser notre vie d’ici 2050 (The 50 innovations that will change our life by 2050).

It won’t be the first time in history. Building on bridges was common practice in the Middle Ages and the Renaissance. Take the Rialto Bridge in Venice and the Ponte Vecchio in Florence. But they are small bridges, or giant walkways, depending on how you look at it.

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Buying a first home: 9 steps

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The purchase of a first house involves reflection and planning. By following the proposed stages, you will put all the chances on your side to make your project a success. More details for these steps are available by clicking the following links, or go to National Bank’s website www.nbc.ca

 1. Calculate your borrowing capacity

Estimate how much National Bank could give you to buy your property.

Your National Bank advisor can help you calculate your borrowing capacity by reviewing your financial situation. You can also have an idea of your borrowing capacity by using our calculation tool. Continue reading