Real Estate Talk:
Purchase process in 2026
Using market uncertainty to your advantage when purchasing
By Joseph Marovitch
March 5, 2026
As stated in the last article, we are in a turbulent world affected by novice politics, sanctions, and war on several levels, from cyber to physical, and on multiple fronts. These issues affect our supply chain of goods and services by reducing the flow to Canada. In a new war that is spreading through the Middle East, we are already feeling the effects of gas prices rising due to a lack of production and embargoes.
These are the issues that cause inflation to rise, interest rates to increase to combat inflation, household incomes to decrease, and real estate market values to rise, while supply falls and demand stagnates as buyers are uncertain whether carrying costs will increase.
In our current scenario, there are ways to navigate the market, reduce risk and purchase at the lowest price, such as:
- Verify that the asking price is within the fair market range by comparing it to similar home sales in the area over the last six months.
. - Checking the property for arrears, such as unpaid late taxes, unpaid mortgage payments, or 30- or 60-day assessments from the bank or government. Find the reasons for the sale, anything that creates stress for the seller and provides an opportunity to purchase at a reduced price.
. - Before deciding to purchase, consider national and global factors that may lead to sudden inflation and high interest rates. Then make sure you have contingency funds to manage increased carrying costs until issues pass. Then take the opportunity of pent-up demand and the property’s increased value to either sell or refinance.
. - To mitigate risk from creditors and reduce taxes, purchase the property in a corporation, in the event the carrying costs become unmanageable.
An experienced broker does not cost you and can narrow your search to specific criteria such as location, number of bedrooms and bathrooms, style, and price range.
In this article, the first topic addressed is searching for a property with a broker. You can search online or in local newspaper ads; however, this is a time-consuming process, and much effort can be wasted. An experienced broker does not cost you and can narrow your search to specific criteria such as location, number of bedrooms and bathrooms, style, and price range.
The broker can also:
- Check the fair market values
- Check for arrears
- Determine the most advantageous price and terms the buyer requires and negotiate these.
The first step is to meet several referred brokers and find chemistry, integrity, and trust. In a meeting, you will determine if the broker appears informed, professional, and trustworthy.
Questions to ask include:
- How long have you been a broker?
- Have you purchased many homes?
- How do we finance?
- Can you recommend a mortgage broker?
- Can you recommend an inspector?
- Can you recommend a notary?
These are not complicated questions, but you want to detect knowledge, patience, integrity, professionalism, the ability to negotiate, and commitment to you… and not just a sale. If your gut feeling is positive, then use the broker. If not, go to the next broker. The wrong broker to buy or sell a property can lead to legal issues and plenty of frustration. The broker should also ask you several questions to build a foundation of trust. After all, you will be working together intensely for a time.
The following is the purchase process step by step:
Meet the broker at your home or in their office to determine:
- Type of property – residential, detached, semi-detached, condo
- Number of bedrooms
- Number of bathrooms
- Number of parking and/or garages required
- Preferred locations
- Price range
- Style – old, new, concrete, wood, brick, stone
- Financing: mortgage or cash? You and/or your broker should arrange a pre-approval or prepare proof of cash.
‘The broker will provide a crystal-clear explanation of the purchase process, the rules when working with a buying broker, and the new Quebec buyer’s brokerage contract.’
The broker will then provide a crystal-clear explanation of the purchase process, the rules when working with a buying broker, and the new Quebec buyer’s brokerage contract, which is now mandatory in residential purchases.
Process
1. The broker searches and reviews listings based on the buyer’s criteria.
2. The broker emails the buyer the listings to preview.
3. If the buyer finds any listings to be of interest, the buyer informs the broker.
4. The broker arranges visits.
5. The broker checks for liens, mortgages, registered rights, etc.
6. The broker compares the property to other comparable sold properties from the past six months.
7. Using all the previous information, the broker and buyer determine the best offer price and terms to present.
8. The broker prepares the promise to purchase with a price and conditions.
9. The broker prepares a counteroffer, if required.
Once the offer is accepted
10. The broker ensures all required documents are provided to the designated notary.
11. The broker ensures financing is arranged with bank evaluations.
12. The broker ensures inspection deadlines.
13. The broker handles miscellaneous problems: Certificates, loans, servitudes, non-conformities, septic-well, weeping field.
14. The broker arranges the signing.
Then there are closing costs, which include:
- Notary fees – for radiating a prior mortgage, title transfer, researching titles, researching the property for infringements, unpaid bills related to the property, including but not limited to unpaid taxes and mortgage payments, title insurance if required
- Land transfer fee, also known as the Welcome tax
- The inspector’s fee for a home inspection
- Mortgage broker fees
- Broker commission, which is plus tax
- Lawyer fees, if required
- Adjustments between buyer and seller for paid or unpaid bills, taxes, condo fees, etc.
- Moving costs
The information in these articles is a summary. Should you have questions, comments or wish to discuss further, please refer to the comments section at the bottom of the page or contact me directly. As well, to view past articles, click here.
State of the market
If you have not purchased a property yet and intend to soon, it cannot be stated strongly enough: go to your lender today and lock in a pre-approval asap. It is possible to lock in a rate of 4.3% or less for up to 120 days.
Further conflict has emerged in the Middle East, a tinder box of misunderstood issues, with the U.S. attack on Iran. This is a war that has begun to spread in the region and pull in other countries. The effects on our economy can already be seen in the increasing gas prices. Next, we may see a shortage of goods and other services as the supply chain slows, prompting higher inflation and interest rate hikes to ease it.
‘If you have not purchased a property yet and intend to soon, it cannot be stated strongly enough: go to your lender today and lock in a pre-approval asap.’
Rates are low, and inflation is currently at 2.3%. With the current conflict, these issues can worsen, and inflation and interest rates can continue to rise the longer the conflict lasts.
Now is the time to purchase or lock in a rate. There are opportunities in this scenario. Conflict of a political or physical nature can cause inflation and rate hikes. However, over time, as these issues occur, pent-up demand increases. When these issues calm down, the property owner’s house will suddenly increase in value due to pent-up demand and low inventory. At this time, the owner can sell at a profit or refinance to cover other needs.
The only other consideration a buyer must decide on is if they have the financial means to cover costs in the interim, and the risk, should the conflict go on too long, in order to benefit in the end.
Have a great week.
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Feature image: Alena Darmel
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