Condo in Montreal

Buying or selling a condo in Montreal can be a daunting task for someone who is inexperienced with the process. The processes of buying or selling a condo in Montreal both achieve the same end result: a signing date at the notary's office. However the processes to get to that point are quite different.

Buying or selling a condo in Montreal can be a daunting task for someone who is inexperienced with the process. The processes of buying or selling a condo both achieve the same end result: a signing date at the notary's office. However the processes to get to that point are quite different.

Buying a condo starts with the buyer figuring out his budget in order to ensure that he shops in the correct price range. Nothing is more disheartening than a prospective buyer falling in love with condo and then realizing during the financing stage of an offer that he cannot get a mortgage approval for the unit. In order to avoid this it is advisable that a future buyer talk to his lending institution prior to embarking on shopping for a condo in order to pinpoint what the bank will be willing to approve him for.

Once a buyer has identified his price range, he can then begin working with a trusted Montreal real estate broker. The broker should begin sending the buyer listings that are currently available as well as new listings as they appear on the market. The prospective buyer will have to carefully look through numerous listings that fit his criteria and decide which may be of interest for a visit. Eventually the buyer will find the perfect condo it will be time to make an offer.

An offer for a condo is written on a standard residential promise to purchase form supplied to all Quebec real estate brokers by the OACIQ. (Organisme d'autoréglementation du courtage immobilier du Québec) The promise to purchase for an offer on a condo will include a number of important sections. The first of these is the price. The price offered will depend on the market analysis performed by the broker to determine the fair market value of the condo in question. Once the fair market value is pinpointed by the real estate broker, it will be up to the buyer to decide what number to start the offer at. Different buyers will offer different prices based on their intentions as well as the state of the market. For example, a real estate investor making an offer on a condo will generally want to pay no more than 70% of fair market value in order to be able to make a good profit once the property is re-sold. On the other hand, a buyer putting an offer on a condo during a seller's market may have to offer at asking or close to asking price in order to ensure for a successful bid.

Once the price of an offer for a condo is established, certain clauses must be inserted in order to make sure that the buyer's interests are completely protected. These conditions will include the verification of co-ownership documents, meeting minutes, and the financial statements of the co- ownership. Often times and especially for a newer condo, looking at the meeting minutes will tell us all we need to know about the building and this will make it unnecessary for us to perform a visual building inspection. When purchasing a condo where the unit is located in an older building, it is advisable to have the buyer hire an expert to inspect the building.

When buying or selling a condo, the time delays will vary from case to case. However it is safe to assume that it will take on average a minimum of 30 days from the acceptance of the promise to purchase to the signing of the act of sale and transfer of possession of the condo.

Selling a condo begins with the signing of a brokerage contract between the vendor and a real estate broker. A brokerage contract for the sale will usually be for a bare minimum of three months. The brokerage contract will contain important information including the price of the unit, the inclusions and exclusions, the time line for signing the act of sale and possession, as well as the commission to be paid to the real estate broker upon the sale of the condo. The most important aspect of the brokerage contract is definitely the price. This aspect will be the determining factor of whether the property will sell quickly, slowly, or not at all. A unit priced just over the fair market value should sell between 6 and 12 months. A condo priced at 100% of the fair market value should sell in about 6 months. The lower we establish the price below the fair market value, the faster the unit will sell. For example, a condo priced at 85% of the fair market value should sell in approximately 2 to 3 months. It will be up to the vendor to decide how quickly he wants his property to sell when pricing his condo.

Once the brokerage contract is signed, the broker will begin work to market the property. This will include, among other things, online and print advertisement. It is important to chose a broker with a top ranking website as this will ensure that the unit for sale will garner the widest exposure possible. Most importantly, the property will be placed on MLS for exposure to the public and on Matrix, which is the equivalent of the MLS system but is exclusively used by licenced brokers. The exposure generated by Matrix alone for a condo is tremendous as it reaches all brokers working in the greater Montreal real estate board and everywhere else in Quebec. The broker selling a may also elect to do open houses as part of his marketing strategy.