First time investing in Montreal- negotiation

7 Replies

Hello,

I am planing to make a flip on condo in Montreal, i am new to this market relatively (4 Months), and in generally to this country.

So i have couple of questions that i will love to get an opinion on,

1-Is there any option to find out about closed deals that happened in a specific area/neighborhood?

deals that been closed and registered in the country/city official records? is it an available information? i know couple of countries that have this options.

2-To who ever experienced in negotiation ,what can be a "normal" counter offer in here, i know it depends in alot of things , but for example if i have an asking price of 200,000 is it a reasonable thing to give a counter offer of 140?

Thank you very much in advanced for any knowledge being shared.


Hi and welcome, Mor!

I am from Montreal as well but invest in the Laurentians.

I've only closed on one property and am negotiating on a second so take my advice with a grain of salt.

1. Real estate agents can help you with comparables. They have an easy time finding similar properties in high density areas.

2. Negotiations change from one property to the next because the people change. I suggest you decide what your final price is before you submit your first offer.

Note: something I find odd but seems standard is the EXPECTATION that a renegotiation will happen after the inspection. So much so that sellers seem to withhold an amount they expect to lose after the report comes in.

Hello Mor, 

Welcome to BP. Distressed assets are extremely hard to find in Canada. It's much different than the US. Your other point about the counter offer, i think you should keep a few things in mind:

 Montreal is in a massive seller's market right now. Especially Condos which have been up 14% for the past year and active listings keep going down which makes it harder to find assets in general in Montreal. 

I don't want to demotivate you but instead of low balling offers especially in a sellers market, try to do your numbers properly using either the BP calculator or other calculators out there. 

Hope this helps.

Thank you Youssef Menkhour for your answer ,

Mazin El-Achkar, can you explain what you ment in-

active listings keep going down which makes it harder to find assets in general in Montreal.

 what do you mean in active listing? do you mean listing that are on the market for a while or condos that are not new?

@Mor Elkobi  

1 - registre foncier is a gouvernent register for everything that has a lien on a property, not easy to navigate tho. You can also try JLR

2 - normal counter offer, I would say around 10% but it depends on the state of the house and if the asking price is reasonable or not.

Good luck

@Mor Elkobi

Hello Mor, 

I am from Montreal and also have a real estate portfolio of 120 Units in Montreal.

I started investing in 2008-09, and I gotta say, Montreal's markets the hottest its ever been. I suggest you carefully think about flipping condos in Montreal.

1. There's 3 ways you'll find deals in Montreal.

A) MLS

B) Off-Market (Which people acquire through thousands of phone calls or through connections of their own)

C) Government Auction (which will be posted on the Gazette next Month)

If you're talking about finding out about past details of a deal, then I recommend contacting an agent.

2. It depends on the deal. If you're talking downtown Montreal, you're going to have a hard time negotiating the deal down. 

Sincerely,

Molla 

@Youssef Menkhour congrats on securing your first property and negotiating on your second. I agree that landlord expect a negotiation after the inspection (as they know the repairs that are needed) but there are a few that wont budge. Just happened on a 1.1m 12plex in gatineau. Guy wont budge on his roof. Then you gotta make the call to move ahead or not. To answer the original question of negotiation, I tend to be agressive with my first offer, it is the job of a real estate agent or present all offers. Some people wont counter but most do and then you know where you stand. It should be noted that I always have a reasoning for offering a certain amount for which I can explain to the seller (to make him see the light).