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Courtier Immobilier Montréal Yanick E Sarrazin

Concours Printanier | Équipe YE/SARRAZIN

Concours YE SARRAZIN

Un concours pour souligner l'arrivée du printemps

Avec l’annonce du printemps, notre équipe de courtiers immobiliers à Montréal a eu envie de vous offrir la chance de remporter une carte-cadeau de 100 $ de chez Alma Plantes, ainsi que plusieurs petits prix connexes.

Ce concours a lieu sur la page Instagram de l’Équipe YE/SARRAZIN.

Afin de remporter les prix suivants :

• Une carte cadeau de 100$ de la boutique Alma Plantes & Bar à Plantes

• Un cache pot en terre cuite

• Une jardinière ajustable

• Une plante Peperomia

• Un bouquet de fleurs séchées

 

Les règles sont les suivantes :

• S’abonner aux comptes Instagram de @yesarrazin et de @almaplantes.

• Aimer la publication et identifier en commentaires 2 amis qui voudraient également gagner ce prix. 

• Enregistrer la publication.

• Partager la publication en “story” et mentionner @yesarrazin pour augmenter vos chances de gagner.

Durée du concours et annonce du gagnant

Le Concours aura lieu du mardi 15 mars 2022 au mardi 21 mars 2022 23h59. Le ou la gagnant(e) sera annoncé(e) le mardi 22 mars 2022 à midi en story sur la page Instagram de l’Équipe YE/SARRAZIN (@yesarrazin) et contacté par message privé sur Instagram.

Si le(a) participant(e) ne se manifeste pas dans les 7 jours suivant l’envoi de ce message privé sur Instagram, il/elle sera considéré(e) comme ayant renoncé à son lot et celui-ci restera la propriété de l’organisateur. Un second tirage au sort sera alors effectué parmi tous les autres participants.

En acceptant son prix, le(a) gagnant(e) accepte que les organisateurs du concours utilisent son nom et/ou pseudonyme Instagram dans une publication promotionnelle sur la page Facebook et Instagram de Équipe YE/Sarrazin- Courtiers immobiliers à Montréal.

Informations supplémentaires

Le Concours est organisé par l’Équipe Yanick E. Sarrazin Inc., agence immobilière, œuvrant sous la bannière RE/MAX du Cartier à Montréal, 835 Boulevard Saint-Joseph Est, Montréal (QC), H2J 1K5.

Le Concours a été enregistré légalement auprès de la Régie des alcools, des courses et des jeux du Québec. Un différend quant à l’organisation ou à la conduite du concours publicitaire peut être soumis à la Régie des alcools, des courses et des jeux afin qu’il soit tranché. Un différend quant à l’attribution d’un prix peut être soumis à la Régie uniquement aux fins d’une intervention pour tenter de le régler.

Le/la gagnant(e) sera responsable de venir chercher son prix à l’adresse suivante* :

3997 Rue Saint-Denis, Montréal, QC, H2W 2M4

*Pour les adresses situées à l’extérieur de Montréal et ses environs, le prix sera envoyé par la poste.

Participez au Concours Printanier sur notre page Instagram

Raise in key interest rate - Key informations

In our current context of pandemic and real estate market overheating, the threat of an increase in the key interest rate has been hovering for several months. Recently, the Bank of Canada raised the rate to 0.50%. This interest rate had not increased since the beginning of the COVID-19 pandemic in 2020.

Many questions and uncertainties remain about the impact of this rate fluctuation on the real estate market. To shed some light on the key interest rate and its influence on the real estate market, we spoke with Mahsa Mirzaie, Director of Mortgage Development at National Bank. 

Why does the Bank of Canada increase the key interest rate?

The objective of raising the key interest rate is to curb inflation around the world by reducing borrowing costs and encouraging savings. It is important to understand that at the beginning of the pandemic, the key interest rate was reduced three times to reach 0.25% to stimulate the economy. This rate, reached in March 2020, had never been so low, allowing the economy to recover.

Changement des taux à un jour de la Banque du Canada depuis 2010

Source : la Banque du Canada

How does the increase in the Key Rate affect mortgage interest rates?

When central banks raise their interest rates, the base rate of chartered banks (such as the National Bank of Canada, the Bank of Montreal, the Royal Bank of Canada) also increases, because it costs them more to finance themselves. The consequence is that several bank products with interest rates increase, such as mortgage interest rates, rates on credit margins, and other products with variable interest.

How does this affect current and future bank customers?

Existing customers

Customers that already have a fixed-rate mortgage, the interest rate will not be affected by this increase until their mortgage is renewed. The rate is set for the duration of the contract. When the contract is renewed, the new rates take effect. 

Customers that already have their mortgage with a variable interest rate will have to expect a rise as fast as the following month.

Future customers

Now, for customers who are currently looking for a mortgage, it is recommended to do a pre-approval with rate guarantee as soon as possible. Indeed, despite the fact that there has been a first increase in the key interest rate, according to the forecasts, future increases in interest rates are to be expected. We must then protect ourselves against them.

What is the impact of the increase in the key interest rate on the real estate market?

According to Yanick E. Sarrazin, the team’s chief real estate broker, although the real estate market has been very interesting for several years, it should not be forgotten that the evolution of this market depends on the relationship between supply and demand. A disparity therefore creates an upward or downward impact on property prices. 

Higher rates are expected to result in fewer buyers, which could reduce or stagnate future increases in property values. Some may think that this could lower the price of houses in Montreal. Mr. Sarrazin’s opinion differs since the average prices of properties in Montreal have not witnessed a loss in value in the past decades. Indeed, Mahsa Mirzaie, adds that it would be unlikely unless we find exorbitant rates at 5-6% as those before the year 2000.

What would be your advice for today’s buyers?

Historically speaking, real estate remains a good investment in the long term considering that properties increase in value over time.

However, many are wondering whether it is better to acquire a property right now or to wait, given the situation. From an investment point of view, it would be wiser not to wait to purchase a property given that the prices of properties have always seen an increase, strong or weak.

That being said, a mortgage broker understands that each individual’s situation varies. The financial stability of the buyer is a key element, hence the importance of a mortgage broker assessing one’s financial situation. This analysis can then provide an overall picture of the individual’s income, borrowing capacity and repayment capacity.

Once the financial analysis is done, it is also important to target the objective of the purchase, as the strategy to adopt will be different. For example, is the purchase for a primary residence? There will then be no tax impact on the sale unlike a purchase of a rental property, in this case, the strategy of cash damming will be interesting.

Since it can take a long time to acquire the desired property, it is recommended to do a pre-approval with guaranteed rates with the longest period possible. This then ensures no fluctuation of the rate for a fixed period.

Depending on the objectives of your real estate purchase, there are multiple strategies and can be complex, hence the importance of getting in touch with a mortgage broker who will advise you and guide you towards the right direction.

This article was written in partnership with Mahsa Mirzaie, mortgage development manager at National Bank.

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End of dual agency - bill 5 - Montreal
Montreal Real Estate Broker

End of dual agency: bill 5

End of dual agency : bill 5 – Key informations This article was updated on August 24, 2022. 

Any questions? Contact one of our real estate brokers.

5 tips for the sale of your property - Key informations

The sale of a condo, house or plex is an important step for anyone and requires preparation. Indeed, a property must be well prepared for sale in order to arouse any interest: the first impression counts. After all, buying a property often goes through a lightning bolt or falling in love with different characteristics of the latter.

With the arrival of Valentine’s Day and the current real estate bustle, our team got together and spoke with the Metro Journal to establish 6 practical tips essential to seduce potential buyers. These tips have the specific purpose of achieving the desired effect, namely the sale of the property. To discover these 6 tips, consult the Petit Guide de Séduction immobilière.

In order to further entice potential buyers when visiting your property, we have established 5 additional tips. Here is their overview:

Practical tips for the sale of your property

1. Clean up the property

Cleanliness is an important determinant in the success of selling your property. A clean property is more attractive. Every room should be carefully cleaned. You have to be sure to empty the garbage cans, clean the floors, make the beds and dust the furniture. Closets are not to be neglected either, as potential buyers could be curious and open them during visits.

In a property, the kitchen and bathroom are rooms where extra attention should be paid. These pieces are naturally more ‘combed’ because of their utilitarian character and must then be immaculately clean.

Cuisine lumineuse et moderne Montréal

2. Depersonalize spaces

To seduce a buyer is also to make sure that he/she can imagine living in said property. Depersonalization is essential and refers to removing elements that may harm the sense of belonging of the potential buyer. For example, remove family photos or travel souvenir frames from walls. Your clothes or shoes should not be lying around the property either. It is then important to create a neutral environment where the buyer will be comfortable and ‘feel at home’.

Salon lumineux à Montréal

3. Focus on home staging

Home staging is a method to improve the ergonomics and aesthetics of a room. This technique includes moving furniture, adding decorative elements to the room or rearranging the entire space to make it more welcoming. Your real estate broker has the knowledge in this area and can help you to carry out an efficient and attractive home staging for the buyer. Don’t hesitate to ask your real estate broker for advice!

4. Offer a haven of serenity

The seduction of a buyer also depends on the calm he can experience during his/her visit. Make sure the windows are properly closed, the radio is turned off and your neighbors are not undergoing major renovations. A calm environment inspires trust and is then much more seller for a buyer.

5. Have your pets looked after

Pets are very cute, but they can sometimes create unfortunate situations. For example, during visits, a potential buyer may be uncomfortable with the presence of an animal or even allergic. Whenever possible, keep your pet with a loved one or bring it with you during visits to avoid unpleasant situations.

With these 5 handy tips for selling your property, the seduction of your buyers is almost guaranteed. It is now the turn of the expertise of your real estate broker to ensure his/her love at first sight!

Our team has established 5 practical tips to seduce potential buyers during the sale of his property: do the big cleaning, depersonalize the spaces, bet on elements of home staging, provide a tranquil environment and if you have pets, if possible, have them kept. For tips inspired by Valentine’s Day, we invite you to read our article published in the Metro Journal!

Contact one of our real estate brokers to assist you in the sale of your property

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Why buy with a real estate broker - Key information

Why deal with a broker for a real estate purchase

The purchase of a property is without a doubt a very important step in the life of many people. Visits, offers, counter-offers, negotiations, legal paperwork, etc., the purchase of a house is a complex process that requires a lot of time, research and energy.

Indeed, finding the property that will make your heart beat faster while meeting the criteria, desires and needs you have set for yourself can be a considerable task. Working with an experienced real estate broker who is an expert in the areas you are considering for the purchase of your property can be a smart move that will not only reduce your mental load, but also put part of your real estate project in the hands of a seasoned expert and enthusiast.

A well regulated profession

It should also be noted that real estate brokers in Québec hold an official permit issued by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), which provides them with guaranteed expertise, in addition to requiring them to abide by strict rules governing their profession and protecting you as a consumer.

Project of law 5

Finally, with Bill 5, amending the Real Estate Brokerage Act, a broker can no longer represent both the seller and the buyer. This double representation could indeed lead to certain problems, notably major conflicts of interest. With the amendment of this law, the buyer benefits from greater protection and guaranteed loyalty on the part of his broker as well as a better defence of his own interests.

But in concrete terms, why do business with a real estate broker for a purchase?

1.   As an expert in the real estate market, working with a real estate broker will allow you to buy the property you are looking for at a fair price, according to the state of the market, thanks to the comparative analysis of the property carried out beforehand by the broker.

2.  A real estate broker working with a team of industry experts will also be able to assist and guide you in completing the various legal documents required to purchase (and sell) a property, including the Promise to Purchase, the Seller’s Declaration and the Notarial Act.

3.  In the same vein, your real estate broker will be able to accompany you and advise you with the professionals you will meet along the way, notably the mortgage broker, the inspector and the notary, in addition to having a negotiating strength that will set you apart from other potential buyers.

4.  Your real estate broker’s references and contacts, regarding the professionals mentioned above, could also be useful to you. Indeed, depending on the sector you are looking for, your broker will be able to recommend experts whose specific knowledge will make the difference (especially regarding the inspection of the property) in the buying process.

Finally, doing business with a real estate broker is free for the seller since the fees paid for his services are assumed by the seller of the residence the buyer is purchasing (to pay for the services of the listing broker and the collaborating broker. The amount of the commission is included in the Promise to Purchase, which is signed by both parties to the transaction).

Are you looking for your dream property? You wish to sell your home to start a new chapter in your life? Do not hesitate to contact one of our real estate brokers, it will be our pleasure to accompany you and guide you through the different steps of your process!

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Any questions? Contact us !

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How much a buyer should offer to purchase a proprety - Key informations

Real estate overbidding: how much should a buyer offer for a property?

Real estate overbid

Real estate overbidding is a current phenomenon taking place in Montreal as well as in its neighboring regions. This phenomenon involves a decrease in the number of properties for sale, an increased competition between buyers in order to have the best promise to purchase and the prices of properties going up.

This overbidding is beneficial for sellers, who are spoiled for choice when they receive numerous promises to purchase their property. However, for buyers, this overbidding leads to fierceness and disappointment. Multiple offers are pouring in, so how do you stand out? How much does a buyer have to offer to get a property in this unpredictable market? What should they do? Here are a few tips to help you.

Strategic Tips

1. Be accompanied by a real estate broker expert in the area

In this complex and ever-changing market, it is recommended that you be accompanied by a real estate broker that is an expert in the area in question, as he or she knows the market well. He or she will advise you on the perfect balance between an aggressive price, the market value of the property, the current situation and your budget.

Market value of the property

When you work with a broker, he or she is familiar with the various neighbourhoods in the area you are looking for. With his knowledge of the prices of neighbouring properties, he will be able to establish the true value of the property you want. Your broker will then be able to offer you the most attractive price for the seller.

Current situation

Given the current situation of real estate overbidding, many offers are made on the same property. A seasoned broker with experience in dealing with multiple offers to purchase and negotiating will be able to guide you in establishing a strategy to distinguish yourself from the competition, while respecting your budget.

Your budget

This remains the most important element when buying a property. Unfortunately, emotions can sometimes override reason. It is therefore necessary that you establish the maximum amount you are willing to invest in order to acquire the property of your dreams. Having a good knowledge of the prices of properties on the market, your real estate broker will propose properties that respect your budget.

2. Be organized

Mortgage pre-approval

Organization is a key component to distinguishing yourself from competing offers in the marketplace. Mortgage pre-approval is an effective tactic to show that you are a serious buyer. This pre-approved mortgage application is to be attached to the promise to purchase.

Letter of introduction

On the more sentimental side, it is recommended that you write a letter of introduction and attach it to the promise to purchase. In this letter, you can describe your family portrait, the reasons why you want to buy the property and the emotions you felt when you visited the place. This human aspect could then touch the seller and weigh in the balance in your favour.

3. Be patient

With the increased competition of buyers on the market, patience is required to find the property you want. You must remain hopeful and rely on your real estate broker to review or modify your strategy if it is not effective.

By following these few tips and working on your patience, you could stand out from the competition and acquire the property of your dreams. And now… breathe!

Contact one of our real estate brokers to get answers to your questions

Required documents for the sale of a proprety - Key informations

Single-family homes, cottages, divided or undivided condominiums, duplexes, triplexes, quadruplexes, the types of properties are numerous. The sale of a property is an important life change that can cause many concerns.

Even though selling a property is a common practice, few people are aware of the various documents required for this real estate transaction. Here is an overview of these mandatory documents to help you better prepare for this exciting life change.

Mandatory documents for the sale of a proprety

The certificate of location

The certificate of location is a document consisting of a report and a plan prepared by a land surveyor. The latter must be a member of the Ordre des arpenteurs-géomètres du Québec (OAGQ).

The certificate of location accurately represents the state of the premises. It includes the physical condition of the premises and indicates any cadastral renovations that have been carried out. The certificate of location proves the conformity of the property with provincial and municipal regulations (e.g. zoning).

This document must be up to date and can take up to six weeks to obtain, depending on the market’s effervescence. In Quebec, it is valid for a period of 10 years. The certificate of location is mandatory because it is required by the notary before the signing of the deed of sale. It is therefore important to plan ahead in order to obtain the certificate of location in time.

The deed of sale

Once the promise to purchase or the counter-proposal to the promise to purchase has been accepted and all the conditions of the promise to purchase have been fulfilled, it is the signing of the deed of sale before a notary that formalizes the sale of the property. This is the final step in the transaction.

The deed of sale is drawn up by a notary who respects the rights of both the seller and the buyer. The notary will also ensure the veracity of the facts mentioned in the promise to purchase.

In the deed of sale, there are various elements such as, among others, the contact information of the buyer and the seller, the description of the inclusions, the price of the transaction and the amount of the notary’s fees.

The deed of loan

The sale of a property is synonymous with mortgage financing. The mortgage deed is a document detailing all the loan components (loan principal, interest rate, amortization period, etc.) of the property financing. The mortgage deed is drafted by a notary and is combined with the deed of sale.

When the property is sold, the notary must verify that the provincial and municipal taxes have been paid. In addition, the balance of the mortgage loan must have been paid in full by the seller. This will allow for the cancellation of the mortgage loan. The notary will then publish the deed of cancellation in the Land Titles. The Land Registry is a report that determines ownership rights. The deed of cancellation in the Land Regime then allows for the removal of the property rights. It should be noted that in the past, a mortgage deed was required to put the property up for sale. Today, the most important document is the last mortgage statement.

School and municipal taxes

School and municipal taxes contribute, among other things, to the financing of various services such as road maintenance and repair, heating of schools and public transit. When selling a property, the future owner must be aware of these amounts. A real estate broker will have access to them and can inform future buyers. The school tax statement indicates the amount to be paid annually. It also shows the evolution of the value of the property in recent years. The municipal tax statement details the amounts imposed by the municipality and the borough.

Specific documents

Divided co-ownership

Declaration of co-ownership

Divided co-ownership is governed by a syndicate of co-ownership which ensures that the building is respected and properly administered. The Declaration of Co-ownership is a notarized document which acts as a binding contract between the various co-owners of the building. The document describes the administrative and living rules of the building. These rules must be respected by the owners, tenants and members of the syndicate of the immovable, under penalty of negative consequences. The Declaration of Co-ownership makes each party responsible and can promote better harmony between co-owners.

Financial Statements

The financial statements of the syndicate of co-owners are reports detailing the accounting situation of the co-ownership for each fiscal year. Any co-owner can have access to these reports.

The minutes

Minutes are a document drawn up following a meeting of the co-owners of a building. It must be clear and concise. The minutes must contain the name of the syndicate of co-ownership, the date and time of the meeting, as well as the comments and interventions of the co-owner members. An appointed secretary is in charge of writing the minutes and they are signed by the president of the syndicate of co-ownership. The minutes then provide an overview of the concerns, comments and decisions made regarding the co-ownership.

Undivided co-ownership

The Undivided Agreement

Unlike divided co-ownership, there is no syndicate which ensures the proper administration of the immovable, but rather an undivided co-ownership agreement detailing the rights of each owner and giving details on the management of the undivided co-ownership. The various expenses for the maintenance of the immovable must be separated between the owners depending on the shares of each. The undivided co-ownership agreement is not mandatory, but is strongly recommended for the proper management and administration of undivided co-ownership.

Plex : duplex, triplex, quadruplex (...)

Leases

There are different types of leases: six months and less, six months and more, and open-ended leases. However, a lease is automatically renewed and is usually for a period of 12 months. There is a time limit for notifying tenants of an increase in the rental amount. When the property is sold, a copy of the leases must be provided to the new purchaser.

Notices of renewal or non-renewal

Even when a property is sold, a tenant has a right to remain in the premises. This means that he or she can stay as a tenant for as long as he or she wants. The landlord sends a renewal notice to the tenant to find out if he or she will stay on the premises. The tenant has a specified time to respond to the landlord. Failure to respond will result in the renewal of the lease. At the time of sale, the renewal or non-renewal notices allow the buyer to have a better idea of the amount of rent paid by the tenants. 

As mentioned, the sale of a property requires mandatory documents depending on the type of property. Specificities may also be required at each step of the real estate transaction.

If you are thinking of selling your property or simply have questions, contact one of our real estate brokers to find out how we can help you.

Contact one of our real estate brokers

Demystifying the goodwill in Quebec - Key informations

What is a goodwill?

A goodwill is a legal concept present in various countries such as Belgium or France. But this commercial notion is quite ambiguous and can lead to misunderstandings. In Quebec, what exactly is a goodwill?

A goodwill

In Quebec, a goodwill refers to an intangible asset, which means that it is not tangible. A goodwill is characterized by the combination of intangible and tangible elements that the trader owns in order to operate a commercial or industrial activity. These elements then make it possible to attract customers and retain them. A goodwill will be different depending on the commercial activity. However, the walls of the building, the receivables and the debts are not part of the goodwill. The legal regime will then be different when the business is sold.

Tangible elements

Tangible elements are elements that have a material existence. They refer to fittings, equipment and stocks that are related to the activity of the business. These are also the goods intended for sale. For example, if the business is a restaurant, the physical items could be chairs, tables, kitchen equipment etc.

Intangible elements

Intangible elements are elements that have no material existence. In a business, they can designate the trade name or trade sign, the various operating licenses and its reputation. However, it is the clientele and the right to lease that have the greatest value in a goodwill. 

Fonds de commerce restaurant Montréal

Its main components

The clientele

When buying a goodwill, customers are very important. Indeed, a goodwill could not exist without its customers. A clientele refers to all of the people who do business with the business. It must be autonomous and suitable for commerce. If the clientele evolves, the goodwill will also evolve. If the customer base is not exploited, the business will decline.

If too big changes take place, the clientele of the goodwill will change and this will reveal the birth of a new goodwill. But a cessation of activities in the business would make the clientele disappear and then the goodwill itself. The operation or non-operation of the business therefore determines the existence of the goodwill.

Traffic

Traffic is also an important component of a goodwill. Traffic refers to a transient clientele or a local clientele of the fund. Despite the fact that traffic does not refer to a goodwill’s own clientele, it is still important. Indeed, the higher the turnover of the business, the more traffic there is.

The right to lease

The right to lease refers to the right of the owner of the goodwill to carry out his commercial activities within the walls of the business, that is to say to become a tenant of the walls, until the termination of the lease. The acquirer of the business will then benefit from this right to the lease.

Sale of a goodwill

When selling the goodwill, you have to define the type of business. Is it a corporation or a business?

If it’s a corporation, you can buy the business and the shares go to the transferor.

If it’s a business, then you have to buy the entire business.

A broken down promise to purchase

After determining the type of business, all the elements of the goodwill must be broken down, that is to say to divide the expenses and the costs, on the promise to purchase. This is particularly important given the different activities that are possible in a goodwill. For example, when a buyer buys a clothing store, he buys his inventory. In this case, there are established prices for the goods or inventory. However, these prices will be paid separately, as the inventory is not stable over time and is constantly changing depending on the seasons.

A negociated agreement

Following the breakdown of the offer to purchase, a price agreement is negotiated between the seller and the buyer. Different steps must be taken such as the transfer tax, being the payment related to the change of ownership or the deed of assignment.

Before the signing of the deed of assignment, the seller must be responsible for having paid all his debts, works and various obligations related to the goodwill. After the signing of the deed of sale, the buyer is the new owner and will be responsible for all future expenses related to his commercial activity.

Purchase of a goodwill

Sustainability

When buying a goodwill, the majority of sellers want buyers to sign a new lease. Thus, sellers will not be held responsible for buyers. On average, a business requires a lot of time and money (in renovation, decoration, etc.). A buyer therefore wants to operate his goodwill for a period of at least five years.

The staff

As mentioned earlier, buying a goodwill means acquiring its clientele, but also having access to the staff and suppliers. It is the buyer’s choice whether to keep existing staff or not. However, it is important to remember that the loyal clientele of a business is often attached to its staff. The complete dismissal of staff or too drastic changes in the trade could then make the clientele insecure and even make it disappear. You must therefore make wise choices, because why change a winning formula!

Contact one of our commercial real estate brokers to help you with your sale or purchase of a goodwill.

Contact one of our real estate brokers

Cancelling an offer to purchase, is-it possible - Key informations

Is it possible to withdraw from an offer to purchase following an inspection?

After various searches with your real estate broker, you finally made the decision to buy a property. You then make an offer to purchase to the seller and it is accepted. After reading and certifying the seller’s declaration form, it is now time for the inspection of the property. However, following the inspection, you decide to withdraw from the offer to purchase. Is it possible? Here are some important tips and information you need to know.

offre d'achat signée

Declarations by the seller of the immovable form

The transparency of the seller

The Seller’s Declaration Form of the Immovable (commonly referred to as ‘’SD’’) is a mandatory document that must be completed by the vendor when selling his property. It is the seller’s duty to be transparent in his statement. This form of approximately six pages describes the history and details of the property, from past renovations, insect infestations to water damages. The declaration has to be read carefully by the buyer, who has to take note of the various statements made. The ‘’SD’’ is then signed and appended to the promise to purchase.

Once the promise to purchase is accepted, a time limit is set to fulfill the terms of the offer to purchase including the inspection. This time limit is variable and is approximately seven to 15 days.

Prepurchase Inspection

During and after the inspection

The real estate broker plays an important role in the inspection of the property. Indeed, whether it is with the buyer or the seller, the broker will participate in the inspection and make observations about the property. For his part, the building inspector will provide an inspection report and give various comments to the buyer.

Although sometimes neglected in order to speed up the sales process, the inspection of a property is a crucial step. During the inspection, the broker can detect disturbing elements of the property or highlight major issues that were not listed in the seller’s declaration form.

Completion or non-completion of the inspection condition

Following the inspection, within a 24 to 48 hours delay, the report is sent to the broker. Once this report is received and analysed, the buyer can declare himself satisfied and no change will be made to the promise to purchase. The transaction is ongoing.

If the buyer is not satisfied, there are options available to him. However, the promise to purchase is a contract that binds the two parties involved. The reasons for modifying an offer must be valid. So there has to be elements that came out of the inspection report that are problematic, which means that they represent a risk or additional costs associated with the property. These so-called “problems” may also not have been mentioned in the seller’s declaration form. At this point,the buyer may then negotiate the price or withdraw from the offer to purchase.

Following this decision, a notice and a copy of the inspection report must be sent to the seller in order to formalize the cancellation of the promise to purchase.

The steps to acquire or sell a property are numerous and sometimes difficult. Be accompanied by one of our brokers to receive the necessary expertise at every step of the process of buying or selling your property.

Contact one of our real estate brokers to get answers to your questions

Everything about overbidding in real estate - Key informations

In 2021, many are convinced that the real estate market can be summed up by the terms: multiple offers, rising prices, and overbidding, a cocktail that could surely please sellers, but that could be discouraging for many whose dream is to acquire a property. 

In a current market dominated by sellers, many have come to wonder about the causes of this overbidding phenomenon. Is it caused by the pandemic? How can we explain such a rapid increase in real estate prices? Would making offers to purchase known to the public be a legitimate solution to counter this phenomenon? This is what our team of real estate brokers would like to explain to you.

What is overbidding?

First of all, let’s shed some light on this term that many people are talking about: overbidding. This is a real estate phenomenon that has always been known, but which has been growing for about a few years now. This overbidding takes place when multiple promises to purchase are made for the same property in the space of a few days. It is in fact out of fear of being refused the property because of a more competitive offer than their own and in order to stand out from other prospects, that buyers are ready to bid on the initial asking price for the property. This bidding can sometimes go up to several thousand dollars above the asking price and often exceeds by far the value previously assessed by the bank.

What explains this?

Although complex, the overbidding can be explained in a rather simple way, by the economic phenomenon of supply and demand. While the real estate market slowed down significantly in the early days of the pandemic in 2020, it picked up again shortly thereafter, as buyers were more ready than ever to find a home. However, the inventory of properties was very low during the first phase of the pandemic as it is now. We are therefore witnessing a very high demand on the part of buyers, for a very limited supply on the part of sellers, hence the real estate overbid. Is the pandemic the cause of this? Perhaps in part, yes, but it is not the reason for this phenomenon.

Making bids public: a solution to calm the phenomenon of real estate overbidding?

Many think that the solution to counter overbidding is to make the bids public. In our opinion, if the offers to purchase were public, the phenomenon of real estate overbidding would only worsen. This can be explained by the fact that it would almost inevitably be the last buyer, aware of all the offers that have been made beforehand, who would be able to offer the best price to the seller. By keeping offers confidential, buyers can offer less than the asking price and still be at the top of the list compared to other prospects.

How to buy a property despite the overbidding phenomenon?

The overheating of the market is therefore caused by the absence of real estate inventory for a very high demand from buyers, who are sometimes ready to use big means to get their hands on a property they love. In the heat of the moment, it may seem instinctive to want to offer much more than the posted price, but your broker is the seasoned professional who will remind you to act rationally and not emotionally. He or she will also make sure to do a thorough evaluation of the market so that your offer is representative of the value of the properties. He or she can also guide you in your efforts by presenting you with effective and distinguished ways to stand out in a situation of multiple offers, for example by helping you write a presentation letter. In any case, the real estate broker remains your best ally in buying a property.

Best Team of Real Estate Brokers of the Plateau Mont-Royal

Our team is proud to have received the title of the Best Team of Real Estate Brokers of the Plateau-Mont-Royal from RE/MAX du Cartier.

This trophy is the result of our joint efforts, to work together to always exceed the expectations of our customers!

Operating under the RE/MAX banner in Montreal, our team brings together experienced real estate brokers, marketing specialists and highly qualified administrative personnel helping you make your real estate projects real success.

Whether it is to sell your property or find the one of your dreams, by choosing the YE/SARRAZIN team you will not only be assured to reach the highest standards of the industry, but you will also be supported by genuine and human people who have a sincere pleasure serving you. Honesty, courtesy and integrity are some of the values we share.

From the beginning to the end of each transaction, we are at your disposal because your satisfaction is our priority!

 If you have real estate projects that you want to realize, contact us today at 514.799.9841 to find out how we can help you!

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