How to Make the Most of Montreal's Cooling Real Estate Market: 7 Tips for Competitive Offers
Throughout the past few years, the Montreal real estate market has been extremely hot, with prices of single family homes increasing 59% between January 2017 and January 2022.* However, with some economic downturn and rising mortgage rates, the market seems to be cooling. This can particularly serve buyers, as sellers are often willing to accept a more competitive offer in order to sell their home. If you’re thinking of making this kind of offer, these are a few things you can do to increase your chances of having it accepted. With a little bit of knowledge and some careful strategy, you just might be able to snag your dream home at a price that’s lower than you imagined throughout the past few years.
1. Do Your Research — Before making any kind of offer on a home, it’s important to have a good idea of what the property is worth. When you work with us, we can provide you with an accurate estimate of the home’s value. We look at recent comparable sales in the area to get an idea of where the current market stands. The more information you have, the better equipped you’ll be to make a smart offer.
2. Don’t Offer Too Low a Price — Remember, the goal is not to make an offensive or insulting offer — the goal is simply to get the best deal possible. Our experts can work with you to make sure your offer is right. With that in mind, we advise that you don’t go too far below the asking price; doing so is likely to offend the seller and kill any chance of further negotiation.
3. Focus On Homes Listed Less Recently — It’s always a good idea to focus your search on homes that have been on the market for at least one to two months. Sometimes this means that the sellers had a buyer that fell through, or that there is something of concern that could be fixed or negotiated with before buying. These kinds of listings can typically point to a more flexible seller.
4. Make It Personal — When you find a home you love, it can be easy to get caught up in the emotion of it all and overlook the business side of things. But at the end of the day, many sellers are more likely to accept an offer from someone who appears to be particularly invested in their property. Send a letter with your offer explaining why you love the property and what it would mean to you and your family to live there. These personal touches could be just what pushes your offer to the top of the pile.
5. Have Your Financing In Place — Nothing says “serious buyer” like being able to show that you’re already pre-approved for a mortgage. Getting your financing in order before making an offer not only makes you look more reputable, but it also shows that you’re serious about buying the property and aren’t likely to back out at the last minute.
6. Be Flexible On The Closing Date — Most sellers want to close as soon as possible so they can move on with their lives, so try to be as flexible as possible when it comes to when you’re able to take possession of the property. If you’re able to close quickly, mention this in your cover letter; it could be just what swings the deal in your favour.
7. Be prepared to walk away — If your initial offer is rejected, don’t be afraid to walk away from the negotiation table. There are plenty of other homes out there, and there’s no sense in overpaying for one simply because you’re afraid of losing it — especially right now. If the seller isn’t budging on price, move on to another property. We are here for you if this happens. Chances are, you’ll find one that better suits your needs and budget.
Making a competitive offer can be a great way to snag a property at a discounted price, but only if you do it right. By following these tips, you can improve your chances of having your offer accepted. These make a difference, even in today’s ever-changing market. Don’t be afraid of negotiating!
*Source: Montreal Gazette article
https://montrealgazette.com/business/local-business/real-estate/the-year-ahead-will-montreal-home-prices-keep-rising
