Westmount, QC

Refinancing is too often not considered by clients looking to reduce debt or increase an asset portfolio.

Refinancing can be used to pay off debts. With adequate equity on the home and a need to pay off credit debt, debt can be added to a mortgage. A lower interest rate will reduce financial strain. Care must be taken as to what price a client is willing to pay for this benefit. An example is a client with poor credit and will have lenders go into second ranking which can be pricey.

Refinancing a home to pull out equity for a down-payment to buy revenue property can increase your assets sooner. With interest rates so low, this can be a very wise decision.

Another refinancing attraction is to switch banks for a better rate. For example, a client into a 5 year term, paying over 5%, may consider the penalty worthwhile. A good mortgage agent can help you with this.

Your first barometer on market is buyer interest or number of visits, second, buyer offers and last an accepted offer.

As the market is always changing, and given the factors at play, the best agents will provide you a likely selling range and timeframe given conditions when you go to market. While some properties just need that one buyer to find them, an overpriced listing sits and grows stale. This seller must wait for the market to elevate itself, to reach their price. If a property is priced too low, some buyers will wonder what is wrong with the property, speculators and renovators will jump at the opportunity.

Make sure you are not seduced by the agent offering the highest price for your property and rather choose an attentive agent who backs up their case with facts and who you trust will be there to support and communicate well with you from start to finish as you move through the sales process. A good agent protects you, removes barriers and keeps transactions safe.

Becoming more common are children inviting their parents to move into their home providing as much independence as possible. These properties have of recent been identified within the real estate community as Intergenerational Properties.

An Intergenerational Property includes an additional dwelling that allows for home-sharing between parents and children and does not usually generate revenue. A revenue property is a single-family residence that has a rental unit that brings in additional revenue for the owner.

On the Montreal Island, I have seen converted basements added kitchens, patio doors and elaborate bathrooms mostly. Off island or on occasion in town the garage is converted or another dwelling on the property is used.

If you seek to create or purchase an intergenerational space or property, remember that this status must be recognized by your municipality.

The term Condominium is used in Quebec to describe shared co-ownership. There are 2 categories set out by the Quebec government with very distinct differences.

Divided co-ownership is the right of ownership held by many people ("co-owners"). Each co-owner owns a fraction (%) of the property that is physically divided into a private portion and a share of the common portions. The private portion is typically determined from the gyprock walls inward. A condo association ("syndicat" in French) is established to govern the building's common areas and to set rules of conduct and process. The government has fairly strict rules on how divided condo associations must manage the building and owner relationships.

Undivided co-ownership is ownership of the same property, jointly and at the same time by several persons or companies called "undivided co-owners", each of whom privately owns a share (percentage) of the right of ownership and not a physical division of the property. The governance of this category can be less rigidly structured depending on the owners viewpoints on how to manage theier shared property.

One most notable difference between the two are the property taxes you can expect to pay. A divided co-ownership property can expect to pay almost double that of an undivided property.

When it comes to mortgage such properties, the government has more restrictions placed on undivided properties to protect its citizens. The mortgage must be held within one financial institution who has a set of rules to follow. Clients are never thrilled about this, even if however, it is to their benefit.

Some undivided property owners will want to convert their property to divided status so that it will sell eaiser and / or to sell for more. The property must then be converted. This process is done with the government, and can take a number of months and cost $7,000 - $10,000 to complete.

As here in Quebec we follow the French originating Civil Code and not British-based Common law, property and ownership have different perspectives from a law point of view. There are subtle differences in many jurisdictions and so it is important to consult with local real estate agents to learn more about the sector you want to live in.

For an interesting real-life variation and use of these 2 co-ownership categories, please read my blog titled: "Divided and Undivided Condominiums Together in One Complex in Montreal".

Has it been suggested your home will sell for more? What facts have been given to support that sales price? What factors and who will determine the final sale price? While the answer is not an exact science, reliable factors have influence as do the buyers who set the final price. Established agents know prices in their sector, but can they explain them to you and make it all add up?

Factors such as market state (buyer, balanced, seller), property location, property condition and type, décor and motivations will affect the final sales price. For example, if a seller is caught and absolutely has to sell, the motivation to sell for less exists. Likewise, if a buyer absolutely has to buy, then they will likely be willing to pay more. These can be fun conditions for the winning party however, in most cases, the home sells close to its real value. Why then, would a seller expect their home to sell above real value?

The question should always be asked as to why a buyer should pay more for your home ?The answer lies in what adds value to a home and what serves only to differentiate it from the competition? Certainly, properly presented, well-maintained with current, neutral décor sets you above the rest, however, it is not worth a premium; it places the property in the upper selling range. Do you have a garage, extra living area, another bathroom, extra land, a great view or something adding capital to the property? These are factors deserved of a premium.

In the end, sales price can be whittled down to the appropriate selling range plus a justified premium, and then a speculative component in an ascending market, or discount in a descending market. The price component that kills listings and sellers confidence is an emotional attachment with a dollar value or a wing-and-prayer promise to get you more for your home. A good agent will identify these components to help you set reasonable expectations and a fair dollar value on your home. When it sells, you should know why.