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Property sale Lakeside in Canadian dollars?


Sarita

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I have an offer on my property there but it is in Canadian, despite the listing in US funds. Has anyone ever dealt with an offer like this before? I have concerns that by the time of closing, the amount will be worth considerably less than today due to the unstable nature of the loonie lately. The agent insists the buyer will not pay in US funds and that they are doing me a 'favor' making it in Canadian. I should mention, it is also considerably below the list price and my agent is pushing me to accept saying 'this is all my property is worth' despite him stating it has a market value of $80,000 US more just one month ago...

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Is the agent representing both sides?

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If you're asking $200,000 US for your property, and he offers $200,000 CDN instead, it means that, in reality, you are getting only $173,000 US for it.

Are you ready to take the loss?

The buyer would have to come up with $288,600 CDN to meet the $200,000 US.

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Wow, we had an agent like that long ago but since her business has closed there are obviously more like her in the area. I would tell your current agent that you would like to terminate the listing but they will probably not be willing to do that. You could mention about fraud in the inducement but chances are those clowns don't even know what that is.

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You are the only one who can do the math and make the decision to accept the offer or reject it and wait for another offer. If you are unhappy with the listing agency, just let it expire and choose another firm.

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Since you are Canadian there should be no problem with the buyer paying in Canadian dollars, as long as there are enough of them. If your realtor is urging you to take Canadian dollars at par with U.S. dollars, though, you have chosen the wrong realtor. The wording in the contract has to express that you will be paid at closing, in Canadian dollars, the current exchange rate as of that date for XXX U.S. dollars.

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Your agent doesn't care that you are taking a big loss he or she only cares abut their commission I would look for a new agent. You cannot blame the person making you the offer but you sure don't have to accept it.

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I am an absentee owner not returning and the agent knows this so I think I have been 'marked' as desperate. It is listed just below $300,000 US well down from last list at $380,000 US a couple of years ago and well below all current market evaluations as well. The offer came in at $345k Canadian -- that is $237k US which I replied is an insult and countered at full list. Not sure if my agent is double-ending the deal but I don't doubt it. At 7% commission, that is a huge chunk of change in their pocket (incidentally, about 3X what commission would be on same sale in Canada where many agencies are now at a flat 2%). This property is not a dud, rather it is one of the nicer ones Lakeside, with a recent $100k total renovation and second to none lakeviews. Agent says the Mex. buyer will not care what I paid for renos as they would not have invested so much in it themselves so that is irrelevant. Uh huh.

The agent has told me I should not be concerned that the offer is in Canadian funds since I should be looking at it from his point of view, that it is still more than I would have gotten a couple of years ago when the loonie was closer to par with USD. In other words, I should not be so greedy as to hope to break even, I should be grateful to only be losing a little.... My big concern is that closings in Mexico are notorious for dragging on, with a mid-March close, the loonie may have plummeted further, costing me tens of 1000's more in loss. Oh, it has slipped that the buyer is planning to have a pool built with all the money he saves. Seriously?

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When I was selling real estate in Sinaloa, a counter offer voided the original offer and you had to start all over. If you have a notario, I would be willing to pay for a consultation to see where you stand officially rather than rely on a public forum for advice. Good luck!!!!

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I have an offer on my property there but it is in Canadian, despite the listing in US funds. Has anyone ever dealt with an offer like this before? I have concerns that by the time of closing, the amount will be worth considerably less than today due to the unstable nature of the loonie lately. The agent insists the buyer will not pay in US funds and that they are doing me a 'favor' making it in Canadian. I should mention, it is also considerably below the list price and my agent is pushing me to accept saying 'this is all my property is worth' despite him stating it has a market value of $80,000 US more just one month ago...

A couple of month's back my friend accepted an offer in CDN. She "parked" the monies in a CDN no interest account in MONEX, and hope the CDN will (eventually) gain strength.

Her other problem was Canadian Tax, if the whole amount was transferred to her Canadian account.

Regardless Pesos or CDN, you have to judge, how many golden years do you have left.

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I'd just insist the buyer pays what ever the equivalent is USD is at closing, the current rate. It just sounds like they are trying to grind you. If you don't need to sell right away I'd stick to my guns. Leaving 80K on the table is a bit much. In conversations I have with two local Realtors who are in my opinion honest and reliable, the market is picking up and they are closing on more properties now than the last few years. With the lower peso price, a lot of grinders will be out trying to wave cash a people.

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It would seem to me that if you refused their offer and began discounting your listing by let's say $ 10,000 USD every few months you could still end up making more money than the current offer. There's a huge cost to desperation so if you can hold out you can still get more than their offer.

Mucho Suerte

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I have an offer on my property there but it is in Canadian, despite the listing in US funds. Has anyone ever dealt with an offer like this before? I have concerns that by the time of closing, the amount will be worth considerably less than today due to the unstable nature of the loonie lately. The agent insists the buyer will not pay in US funds and that they are doing me a 'favor' making it in Canadian. I should mention, it is also considerably below the list price and my agent is pushing me to accept saying 'this is all my property is worth' despite him stating it has a market value of $80,000 US more just one month ago

Simply refuse the offer or counter offer, I find that many people at lakeside sometimes over estimate their property, you could simply have your property appraised by an independent firm and go with that

Nothing wrong with paying with the pesos from the north, as long as there is enough to match the closing cost !!!

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There are no independent appraisal firms here! You're at the mercy of the real estate agent when it comes to determining price.

The funny thing is, this agent criticized the previous agent of 3 yrs ago for doing exactly the same thing- over valuing a property to get the listing, then dropping the price. Only difference is, this one is telling me that only Mexicans would be interested in my property (really? I bought here & I'm Canadian, and half my neighbors are also!) and trying to convince me that the drop in the peso means my property has therefore also dropped by nearly $100,000 US since early December on an original $325k price.

Currently, I am being urged to counter but was told that even a $390 Cndn ($275k US) is too much and the buyer will walk. Sounds like he is getting the steal of a lifetime to me. I know the smart thing to do is to let them go and hope for a better offer but that is the real scary part- who knows when or how much. I so wish For Sale By Owner had been a more realistic option. I sold my last 4 properties myself, saved over $100,000 commission and the buyers got a better deal. So not enjoying dealing with the real estate mafia here!

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