7 Common Real Estate Market FAQ
We hear everything and anything about the real estate market, so it’s becoming increasingly difficult to make sense of it all.
Here are a few keys to unravelling the truth.
1. Is the real estate market safe despite the crisis?
YES. Real estate remains a safe investment, even in these times of crisis. Today, owning a primary residence is still a priority for most Canadian people. Moreover, real estate loans have reached historically low rates, so it would be a real shame not to try your luck!
2. Can a purchase offer at the price of the mandate be refused?
YES. At first glance, this answer may seem strange, but if you think about it, it is with the real estate agency that the seller has signed a contract and not with the potential buyer. If a buyer makes an offer at the price of the mandate, the seller is not obliged to accept it. On the other hand, the real estate agent is fully entitled to claim his commission since his mission has been fulfilled.
3. Should the agency fees be included in the calculation of the notary fees?
NO. It is not even recommended. Indeed, the notary’s fees are calculated on the property’s value and not on the services you have used to find it. To exclude the agency fees from the sale price, the real estate agent must have signed a sales mandate with the commission to be paid by the buyer.
4. Is there an ideal profile of buyers?
YES. Older buyers and executives inspire more confidence. More and more prospective buyers are waiting to purchase a property after benefiting from a higher income.
5. Do banks easily follow?
NO. One thing is clear: banks are more and more reluctant to lend. And yet, credit rates are falling! This is a sign of the asphyxia in which the Canadian real estate market finds itself.
They lend more easily with loans of less than 15 years when it comes to financing an apartment or a house well located and in good condition.
Good to know: increasing your contribution will reassure the bank to lend you more since the repayment period will shorten.
6. Is it better to renovate your property than to sell it as is?
NO. The buyer will undertake work according to his tastes and choices, especially concerning traditional or popular properties. Indeed, he will not necessarily be inclined to pay more for a renovated property. However, the property must be in good condition and maintained. The only circumstances in which the owner must renovate his property before selling it are in case of water damage or a house in danger of falling.
7. Is the exclusive mandate less efficient than the simple mandate?
NO. The exclusive mandate may not have good press because people think multiple sole mandates increase their chances of success and are reluctant to trust a single agency.
However, the exclusive mandate is more effective than the simple mandate. Only a few percentages of signed mandates are sole, and a much higher sales rate concluded by a real estate agency results from an exclusive mandate.
Indeed, entrusting the sale of one’s property to a single real estate agent motivates the latter to bring results quicker!.
Seller and buyer can feel a little helpless in front of real estate agencies’ expertise (real or not). No worries, our blog will regularly provide you with practical advice to have all the cards in hand. See you soon! If you liked this article, please leave us your comments below.
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