Buying or selling a property is a big decision. The money at stake can also make this an anxiety-inducing endeavour.
Fortunately, it does not have to be. It helps to know that people buy and sell properties successfully every single day. The key thing is to have some checks and balances throughout the process to protect yourself.
Here are four things to consider when buying or selling a property.
1. Get an Attorney on Board
Doing your own conveyancing as a layman is risky. The process is lengthy and involves real estate laws that you might not be familiar with. This aside, there will be mounds of documents from both parties that you need to read and understand. Therefore, a real estate lawyer in Montreal will be well versed in property transfer and ownership laws and processes and can help you navigate through the process.
Similarly, if the deal experiences issues that will result in litigation, having had a lawyer through the entire process will be a bonus.
2. Realtor vs. FSBO
Whether to use a realtor or to handle the sale/purchases by yourself is a common consideration. A For Sale by Owner (FSBO) means that you handle all the processes involved in the transaction. While it’s doable, it’s not for the faint-hearted.
On the other hand, using a realtor means you get to use their expertise in the process. Realtors are experts at marketing, pricing, staging houses, handling documentation, and closing on properties. Often, a realtor-managed transfer takes shorter timelines than an FSBO.
These go both ways. When buying property, you want an inspection done to ascertain its exact condition. Instead of relying on the seller, this should be done by a third party (instead of relying on the seller), as you want an objective assessment.
On the other hand, you need an inspection done when selling to know the actual value of what you have and what presale you can fix to increase the property’s value.
On both fronts, an inspection is also instrumental in bargaining; to get a lower price for the buyer and justify the asking price for the seller.
4. Comprehensive Costs
Both buyer and seller will incur costs in the transaction-over and above the obvious one.
Many first-time buyers will focus on the asking price of a house and ignore many other factors. When using financing, consider interest, closing costs, realtor costs, attorneys’ fees, moving fees, and so on.
When selling, think beyond realtors’ commissions and factor in moving costs, inspection fees, home improvement fees, staging, and so on.
Take Your Time
These tips should help you manage a sale or purchase successfully. Besides these, have your sixth sense on guard and go slow on anything that does not sound, look or feel right.