What Every Buyer Wants to Know - Our Most Frequently Asked Questions
Are you looking to purchase a new home? Whether it's your first time or you're a seasoned pro, the process of buying a home can be stressful - especially in today's market!
Luckily, we're here to help you every step of the way, and that means taking the time to answer any questions you have. We understand the unique challenges that different types of buyers can face. First-time buyers will encounter a completely different set of problems than those of move-up buyers or downsizers, who may also have a house to sell. Regardless of the situation, we’re often faced with some common concerns from ALL buyers alike. On that note, we've decided to share the top four most frequently asked questions we get from buyers. Let's dive in...
When do you think prices will come down?
It is our responsibility to be up to date and in-tune with the local market. We look at stats, we heed forecasts from the real estate board, and we pay close attention to industry press releases from our parent company - Royal LePage. As knowledgeable as we are, we don't have a crystal ball. The real estate market, like the stock market, is hard to predict. If we could, we'd all be rich!
For the past 20 years, we have only seen a slow and steady rise in real estate prices, at a rate of between 2-5 % year-over-year. It’s only been the last 2-3 years that we’ve seen the rate of growth that we’re experiencing now. Average prices of single family homes in and around Montreal have gone up by about 30% over last year. We don’t foresee prices coming down at all… although a levelling off of the market or a slow-down in the future is certainly a strong possibility.
How many offers do you think there’ll be on this house?
Many times after we show a particular home of interest to a buyer, they turn to us and ask us this question. The number of offers a property receives is strongly influenced by 3 critical factors.
1 - The price tag
2 - The location
3 - The presentation and condition of the home.
If a home is competitively priced and in a good location, the chances of seeing multiple offers are greatly increased. The more attractive the price, the more offers one can expect to see.
The other factor that can greatly increase the chances of multiple offers is the optimization of the visual aesthetics and the overall condition of the property. This can include things like renovations, fresh paint, stylish decor, and up-to-date maintenance and repairs. There is always a huge demand for turn-key properties.
Although we can usually make a fairly accurate prediction, the truth is we just never know! We’ve seen homes that we expect to be extremely active only receive 1 offer, while others that seem overpriced and in poor condition receive 10 or 12!
What do you think this house will sell for?
It depends on the number of offers! What we notice with buyers is that once they know that someone else has made an offer on a property, they will likely want to as well. We’re like a flock of sheep! People become highly competitive, so the more offers there are, the more buyers are usually willing to pay.
As listing brokers, here’s what we've noticed. Let's say, we get 10 offers, there are always a few really low balls, but the bulk of the offers tend to be very similar in price. Then there’s usually one or two that stand out way above the rest. Those are the people who are serious and absolutely don't want to lose the house.
We like to set realistic expectations with our buyers, and we can often predict what range most of the other offers will be in. However, we make it clear to those buyers that if they want theirs to be the one offer that stands out above all the rest, they will need to be prepared to go there. Buyers must mentally and emotionally prepare themselves for the absolute maximum they're willing to pay for a home. The worst feeling is realizing you missed out on your dream home for an extra $10,000 that you would have paid had you known.
Would you buy this house?
Buying a home is a personal choice, however, we can advise you if it's fairly priced, in a good location, in good condition, and if it's been well maintained. The ultimate decision is yours. Some buyers have bought houses that we wouldn't have bought in a million years, and other buyers didn't want to buy a home that we would have bought in a heartbeat. We're always here to advise our clients by presenting them with all the facts and pointing out any potential challenges they may face when re-selling the property in the future.
For example, if you fall in love with a cute little 2-bedroom home with no closets, it may be a tough sell down the road. We even had a pilot who bought a house directly under the flight path because he really didn’t mind the planes, and he picked it up for a great price!
Are you looking to purchase a home? Do you have more questions for us? We're always happy to help. Don't hesitate to reach out to Team Broady today by emailing firstname.lastname@example.org or calling 514-613-2988.