In a still tight market, renowned Mont-Tremblant real estate broker Michel Naud advises those who love their home to keep it. The Press spoke to him while he was at the international convention of real estate brokerage firm Engel & Völkers in Las Vegas. With 30 years of experience, he identifies five mistakes to avoid in 2022.
Michel Naud has just put Mario Lemieux’s residence in Mont-Tremblant, a 22 million dollar castle, up for sale. For 30 years, the real estate broker has participated in more than 1,000 real estate transactions in all price ranges, sometimes in seller’s markets, sometimes in buyer’s markets. In 2022, while the real estate madness persists, he is adamant when it comes to advising his clients.
I have calls from clients who say they would like to take advantage of the market to sell and secure their future. OK, perfect, that’s a good idea, you could sell your house for a lot more than two or three years ago. Up to 50% more expensive. But where are you going?
Michel Naud, real estate broker in the Mont-Tremblant region
“That’s the big question,” he continues. Even I thought of doing the same thing with my house in Mont-Tremblant, but I have no solution. Where I’m going is going to cost me a lot more anyway. If you don’t have a plan B, keep your house! says Michel Naud bluntly between two conferences on real estate in Las Vegas.
Michel Naud says he is taking advantage of this international event to network in the high-end market in order to find a buyer interested in Mario Lemieux’s property.
The 22 million property of Mario Lemieux
Because if there are wealthy people in Quebec interested in this type of residence, as well as in Ontario, it is very likely that the buyer will come from international markets, explains the broker. The Mont-Tremblant region attracts many Americans, French, Mexicans, Asians and Africans, he lists.
Three trends seen in Las Vegas: Bitcoin, metaverse and TikTok
During the event of the real estate brokerage company Engel & Völkers, Michel Naud took the opportunity to familiarize himself with new trends in the industry. Buying properties with bitcoins has caused a lot of buzz, he says, especially about how funds and commissions will be delivered. “I’m not sure I want to touch that,” he says.
If, for the moment, some real estate transactions by bitcoins have been recorded in the United States, sellers and buyers come up against notable obstacles: both parties must want to proceed by cryptocurrency and hold accounts, the value of bitcoin fluctuates, the selling prices are still in “classic” currency and the buyers convert their cryptocurrency to have a mortgage loan.
A second phenomenon attracts attention: the purchase of luxury properties in the metaverse. Since the middle class cannot afford a property of 22 million, for example, in reality, some choose to buy it in the metaverse in order to virtually live their dream.
“We were all experienced brokers and all stunned by the metaverse phenomenon, reports Michel Naud. Will there really be a resale market for it? “, he wonders.
While COVID-19 has pushed a market that has remained marginal until now, namely the sale of properties by virtual tour, Michel Naud says he often sells condos in the mountains without buyers visiting them once… In this market of resort, he still says he prefers to see the emotions of customers in person. And the new trend to which he will have to adjust is TikTok, which is now becoming a promotional tool for brokers.
“TikTok’s audience is younger, but we realize that there are young people who have money. »
Five mistakes to avoid in 2022
1. Thinking that one-upmanship is an urban legend
Even though we’ve been talking about it since June 2020, many future buyers are surprised when they come to grips with this reality. “When I have a customer who visits, I say to him: “Do you understand the market in which you are embarking? Often the bonus will be 10% above the asking price, sometimes 20%. The market for properties at $500,000, for example, will end at $600,000. »
2. Hire a broker who is not from the region
A local broker who knows his market, the price of properties and the latest bidding is likely to be more effective, says Michel Naud. “He will also have quick access to information concerning building regulations, contacts with the land surveyor or a building inspector who can give him a quick opinion. »
3. Make offers without mortgage pre-approval or proof of funds
“If you’re not ready, the seller will never consider your offer. I see sellers accepting lower offers, because the other buyers had put financing conditions. »
4. Make an offer without inspection
“As a broker, you have to suggest inspections,” he recalls. But in such a crazy market, without pretending to be a building inspector, the broker can see the significant flaws. The seller’s declaration is also a very helpful tool. »
5. Go over budget
When the buyer gets their pre-approval, they have an idea of their borrowing capacity. However, he must take into account other expenses that could be added, such as a roof to change, a drain to redo and furniture to buy. “Some people get emotional and stretch their budget. »
What if there is nothing in our prices?
What does the broker advise a buyer who, seeing the sales that always end at a higher price, realizes that he cannot afford to buy? “That’s the killer question. There’s no answer. As a broker, we say: “If you don’t go now, understand that the next property that will meet your criteria will be even more expensive. Either go now or wait to pay more.”
“What is surprising is that despite the fact that we are in a seller’s market, there are a lot of buyers. People don’t believe that prices will come down. And me neither. I don’t think it will continue to grow as we have seen for two years, but since there is a lack of inventory, there will be no price drop. »