When you think about your dream home, it’s very rare to think about a modest house with a small yard. Since you’re just dreaming anyway, you often think about luxury residences in Montreal and in other large cities where there are plenty of convenient services and amenities. But don’t just regard these homes as mere fantasies. Perhaps there’s a way to own one at a more reasonable price. Just because they’re luxury homes, it doesn’t always mean that they’re out of your reach.
Check Out Foreclosures First
Foreclosed properties are often offered by banks, which are extremely motivated to get them sold as quickly as possible. That’s why even a luxury home can go for as low as 15% below its real value. You can always go online and find these foreclosed properties.
It’s also not true that you can only buy these foreclosures with cash. An estimated 60% of foreclosed properties are financed instead of bought outright with cash. However, the general rule of buying these properties is that are sold as they are, so they will likely need repairs. It’s imperative that you have an inspector look these houses over so you can factor in what you will have to spend to fix up the house properly.
Find Other Motivated Sellers
While banks and mortgage lenders are often pretty motivated to sell quickly, so can ordinary homeowners. Usually, these are the sellers whose homes aren’t selling even after being on the market for at least 3 months. Usually, in places like Montreal where the market is quite competitive, the homes with the best prices tend to get sold within 2 weeks.
So if you find these longstanding properties listed, set alerts for when their prices change so you can swoop in first.
You can also recruit an experienced real estate agent to help you find these motivated sellers. Agents can provide info about the situation of the sellers so you can have a clue on just how motivated they are. You may also get an idea of how much of a discount you can get on a price.
Buy a House During the Winter
If you have too many buyers after any item, the rule is that the price of that item will go up. That’s basic economics. So you’ll want to submit an offer on a house when there are fewer buyers around. For most cities, that off-season for home buying is during the winter months.
In addition, many owners of luxury homes like to start the coming year right by selling a home they no longer care for. Selling the home gets them off their books for the next tax year.
Of course, you do have to endure the cold and the dark if you’re going house-hunting in winter. You may not be able to spend time with family and friends, and you will want to watch your finances. These are the reasons why others don’t want to buy a house in winter in the first place!
Submit Straightforward Bids
It’s not enough that you’re preapproved for a mortgage. Your bids should also come with fewer restrictions. The sellers are just like you buyers—they want a smooth transaction that doesn’t waste their time. So you should have fewer contingencies, and you should offer a shorter window before closing. You need to make the seller know that you really are as motivated to buy the house as they are to sell. Your bid should include an offer for a larger deposit too.
Heed these tips, and hopefully you can get a sizable discount on the home of your dreams.