Montreal Housing Bubble / Bulle Immobiliere Montreal
Have you ever wonder what is the delta between the price the seller is asking vs the actual selling price the property is being sold??? A lot of factors will affect the property price.
I will enumerate some :
1- Asking VS Selling price
Within the city price will vary a lot.
In Montreal for example it vary by up to 10%.
If you really need to buy right now, make sure to bring these stats to bring the price down.
2- Always do an house inspection. You never know what can be found after an inspection. A broken sewer pipe, leaking roof, molds, electricity that does not follows the building standard, etc.
3- Property evaluation from different sources
First, check the property evaluation from the city. You'll be amazed to see the HUGE price gap between city evaluation and asking price. Do not forget that the city ALWAYS inflate their evaluation to get more tax revenues. So, when you see a seller asking more then 10% than the city evaluation, you know something is wrong for sure. http://evalweb.ville.montreal.qc.ca/Role2011actual/recherche.asp
Second, You can also use Zoopraisal to help you to determine the property price for free. I've compared some properties with expert evaluation and I can say this is pretty good for a free service.
Third, with the market flood of properties for sale, it is easy to compare similar property. Forget about spa, pool or granite counter top ; they should not affect the price unless you really want these features.
Four, always look at the statistics to help you determine the month of inventory, # of active listing, etc. These stats are made by realtor so take them with a grain of salt because you know their first interest (except a few honest one). Above 10 month, it is to seller advantage. Also, check how long the property as been on the market (including all relisting). It will tell you that maybe that property is an overprice "not so hot potato".
Links
"The Canadians see that their engine is running hot, but they ignore it. For the first
time in many years, they are far ahead of the Americans and winning races. They like the
feeling of winning and get glowing international media exposure. The speed of the Cana-
dian car increases and the racing world marvels. No one listens to the few Canadian team
members worried about the risk of explosion. They believe the safety of the car and driver
are being sacrificed for fame and fortune. Winning races has become everything."
"Alors que le déséquilibre entre l'offre et la demande continuera d'augmenter cette année et l'an prochain, les prix des habitations devraient éventuellement chuter, a-t-il affirmé.La zone métropolitaine de Montréal n'a connu aucune augmentation"
"Demise of the discount mortgage?Posted mortgage rates inched up this week, stoking fears of softer housing sales and the squeezing of over-indebted home owners. "
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