Is it better to buy or sell first?
First, evaluate the state of the market. Is it a buyer’s market? If so, you may have more difficulty selling your house at the price you want and within the desired time frame. If, on the other hand, it’s a seller’s market, the risk of having to maintain two houses is not very high. Ask your real estate agent to give you a market outlook to evaluate your chances of selling quickly or finding the house that suits you.
What are the benefits of buying first?
You will know ahead of time your new address, the exact cost of your new property and the possession date. It will then be easier for you to make the calculations when you receive an offer to purchase.
Is it risky to make an offer to purchase before selling my house?
You can make an offer to purchase conditional on the sale of your property. However, should the seller receive another offer to purchase in the meantime, he or she may ask you to withdraw the condition. You will then have two choices: buy this house before you sell your property, or withdraw. To set your mind at rest, consider temporary financing, which will allow you to sign a purchase contract even if your house is not sold.
What are the benefits to sell first?
Since you know the exact amount you will receive from the sale, you have a precise idea of the amount available to purchase a new home. You will also know the move-in date of the new owners. In fact, you will have all the information you need to make a solid offer to purchase based on actual facts.
How to choose a house that suits my needs?
The house of your dreams may not be the house that best suits your needs. Before choosing, think about these three important elements:
- Your needs: How many bedrooms do you need? Would a garage really be useful? Is a third bathroom essential or unnecessary?
- Your tastes: If you aren’t a do-it-yourselfer, forget about houses that need renovations. If you have a busy schedule, a large yard might not be ideal either.
- Environment: Do you wish to drive or take the metro to go to work? Is there a school or a daycare centre nearby? Are you located far or near the services?
Your real estate agent can help you make an enlightened decision. Take the time to explain your needs to him!
How to get a fair price for my property?
A real estate agent can help you by conducting a market analysis of your area. You will then know what the value of the housing market is in your neighbourhood and be able to establish, with your agent, a price that will satisfy you and the future buyer. A real estate agent also is a skilled negotiator who knows all about offers to purchase and counter-proposals. Call upon his expertise!
What are the benefits of becoming a homeowner?
Being a homeowner means…
- Living in a house that suits your needs and lifestyle. Whether you want to have a playroom for your children or a bedroom for your guests, you are free to use the space you own as you wish.
- Taking advantage of all the benefits of a long-term investment. No more rents that go into someone else’s pockets! Your monthly mortgage payments will be used to build sizeable capital that you will recover once your house is fully paid.
- Making fixed payments which, depending on the type of mortgage you choose, protect you against possible interest rate increases. This is quite different from the unforeseeable rent fluctuations tenants must deal with…
- Benefiting from more privacy and a new freedom. Since you are the one to run the show, decisions regarding renovation, decoration and maintenance are yours. Moreover, nobody will enter your home or force you to leave for an inspection or maintenance purposes.
What are the pitfalls I must avoid when buying a property?
- Beware of love at first sight! A property can please you by its charm and its decoration, but does it really suit your needs? When visiting a house, focus on the number of rooms, the room sizes, their layout, and ensure it corresponds to your lifestyle.
- Avoid getting hung up on details. Dirty carpets, worn paint and old wallpaper can be replaced. Remember that when you will own the house, you will be free to redesign your space. However, do evaluate the costs of renovations to avoid bad surprises.
- Make sure the price is compatible with your budget. It is important that your monthly payments don’t impair your quality of life or your capacity to maintain, furnish and decorate your house to your liking. Ask your real estate agent to conduct a market analysis in the area of your interest.
- The price of a house does not necessarily depend on its size. A small, well-divided house can be sold at the same price as a larger house requiring significant redesigning. But it can sometimes be a better investment since you don’t have to invest in major renovations.
- What does my real estate agent’s compensation consist of?
- The compensation paid to the listing agent is withdrawn from the total amount of each sale. This sum does not go directly into his pockets since he must assume expenses for advertising, photos, office costs, transportation and insurance. As a self-employed worker, the agent must also pay his income taxes and save some more for retirement. In most cases, he must also share the compensation with the selling agent involved in the transaction.
What does my agent or broker do to deserve compensation?
Whether you buy or sell a house, your agent or broker accomplishes many tasks for you in order to conclude the transaction in a professional manner and in compliance with the Real Estate Brokerage Act.
- He visits your house or accompanies you during visits;
- He prepares a complete market analysis;
- He compiles all legal paperwork and photocopies;
- He prepares strategies to sell your house (open house, advertising and other marketing tools);
- He assists you throughout the negotiations;
- He thoroughly reviews with you the offer to purchase, the annexes and he draws up the counter- proposal;
- He follows up, draws up and obtains the required documents to ensure the various conditions are met;
- He provides all the legal documents to the notary and accompanies you for the signature of the deed of sale.
To learn more on these topics or to get answers to other questions, do not hesitate to contact an agent member of the Greater Montréal Real Estate Board.