Behind the price of luxury real estate

Luxury home prices on the resale market are reaching dizzying heights. Far from being taken lightly, they are the result of a comprehensive study of recent transactions in the same sector. Therefore, properties offered at a similar price may not have anything in common. Expert explanations on this crucial question.

Posted at 12:00 p.m

Danielle Boneau

Danielle Boneau
The press

Apartments at 9.8 million

Westberg

  • This stone residence is located at 29, Chemin Ramezay, in Westmount and is selling for 9.8 million.

    PHOTO PROVIDED BY CENTRIS

    This stone residence is located at 29, Chemin Ramezay, in Westmount and is selling for 9.8 million.

  • The property has 20 sumptuously decorated rooms.

    PHOTO PROVIDED BY CENTRIS

    The property has 20 sumptuously decorated rooms.

  • It is notably equipped with a bright solarium.

    PHOTO PROVIDED BY CENTRIS

    It is notably equipped with a bright solarium.

  • The master bedroom, one of the seven bedrooms

    PHOTO PROVIDED BY CENTRIS

    The master bedroom, one of the seven bedrooms

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Mont Royal

  • The luxurious stone residence at 300, Chemin Strathcona, in Mont-Royal was built in 2006.  Her price: 9.8 million.

    PHOTO PROVIDED BY CENTRIS

    The luxurious stone residence at 300, Chemin Strathcona, in Mont-Royal was built in 2006. Her price: 9.8 million.

  • It includes this carefully decorated living room.

    PHOTO PROVIDED BY CENTRIS

    It includes this carefully decorated living room.

  • The residence features high ceilings on all three levels including the mezzanine.

    PHOTO PROVIDED BY CENTRIS

    The residence features high ceilings on all three levels including the mezzanine.

  • The lower floor, which unfolds under the entire residence, houses this family room as well as two bedrooms.

    PHOTO PROVIDED BY CENTRIS

    The lower floor, which unfolds under the entire residence, houses this family room as well as two bedrooms.

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Joseph Montanaro, Real Estate Agent of Re/Max Action

How do you set the prices?

We always look at so-called “comparables”, i.e. similar properties that have already been sold and have the same criteria, explains Joseph Montanaro. One thing is certain, the higher you go in luxury, the less there is to compare. Sellers don’t always have the same idea of ​​what their property is worth because they look at the prices of houses that are on the market that have not yet been sold. But we base it on the sales made. Before the pandemic, we went back to a year. Now we go back three to six months because the market is constantly changing.

How do you proceed?

We always look district by district. But even in neighborhoods there are certain streets or certain sectors that are more preferred. If we can compare with a property on the same street it certainly helps a lot.

Which criteria have a greater impact?

Three factors are particularly important. The location is of paramount importance. Then we consider the area of ​​\u200b\u200bthe plot and the house. And then whether there has been any renovation work or the house has been completely renovated.

Is there a reason these two properties are being offered for 9.8 million?

We wanted to stay under the 10 million mark because the higher the price, the fewer buyers. But it is always case by case. Every home is different, every seller is different, and expectations are different.

Homes at 5.9 million

Ivry-sur-le-Lac

  • The property, located at 62-68, Chemin du Vieux-Club, in Ivry-sur-le-Lac, comprises a main residence and two guest pavilions.  Its price: $5,995,000.

    PHOTO PROVIDED BY CENTRIS

    The property, located at 62-68, Chemin du Vieux-Club, in Ivry-sur-le-Lac, comprises a main residence and two guest pavilions. Its price: $5,995,000.

  • The main house sits on the edge of Lake Manitou.

    PHOTO PROVIDED BY CENTRIS

    The main house sits on the edge of Lake Manitou.

  • Delimited by a terrace and equipped with glass doors, the master bedroom allows you to enjoy the breathtaking views that the Laurentians district offers.

    PHOTO PROVIDED BY CENTRIS

    Delimited by a terrace and equipped with glass doors, the master bedroom allows you to enjoy the breathtaking views that the Laurentians district offers.

  • The property has a double boathouse.

    PHOTO PROVIDED BY CENTRIS

    The property has a double boathouse.

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Montreal

  • Located at 1300 René-Lévesque Boulevard West, the spacious condominium offers sweeping views of downtown Montreal and has been carefully personalized.  Its price: $5,990,000.

    PHOTO PROVIDED BY CENTRIS

    Located at 1300 René-Lévesque Boulevard West, the spacious condominium offers sweeping views of downtown Montreal and has been carefully personalized. Its price: $5,990,000.

  • A huge 1170 ft⁠2 terrace runs along the length of the condo.  Several sections have been designed to take advantage of this.

    PHOTO PROVIDED BY CENTRIS

    A huge 1170 ft terrace⁠2 runs along the apartment. Several sections have been designed to take advantage of this.

  • Like all rooms in the penthouse, the dining room adjacent to the kitchen also has floor-to-ceiling windows.

    PHOTO PROVIDED BY CENTRIS

    Like all rooms in the penthouse, the dining room adjacent to the kitchen also has floor-to-ceiling windows.

  • In addition to exercise, conference and reception rooms, the condominium has a swimming pool.

    PHOTO PROVIDED BY CENTRIS

    In addition to exercise, conference and reception rooms, the condominium has a swimming pool.

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Liza Kaufman, founding partner of Sotheby’s International Realty Quebec

Is it important to set the right price?

“I think it’s especially important in the luxury real estate market to get the fairest possible price upfront,” said Liza Kaufman, founding partner of Sotheby’s International Realty Quebec. There is no ready formula.

How do you proceed?

We make an initial analysis of the market that gives us an average price. But mostly the houses have very special qualities and sellers have invested large sums of money to bring them to a very special level. Our job is to show potential buyers that the asking price is justified. And to do this, we highlight what makes each property stand out. Each of the elements that contribute to its distinctiveness affects its value. The list is often very long.

Which criteria have a major influence?

We check the property backwards. We look at the value of the lot, what a house on that lot would cost if brought to the same level as the house in question, then we add what complements it, such as: a swimming pool, garage that can house several cars, view etc. The people we do business with are business savvy and don’t throw their money away. You need to determine what makes each property exceptional.

Homes at 2.7 million

Laval sur le Lac

  • Located in the prestigious Laval-sur-le-Lac district on the banks of Lac des Deux Montagnes, this sprawling 17-room residence.  Its price: $2,798,000.

    PHOTO SUPPLIED BY SOTHEBY’S INTERNATIONAL REALTY QUEBEC

    Located in the prestigious Laval-sur-le-Lac district on the banks of Lac des Deux Montagnes, this sprawling 17-room residence. Its price: $2,798,000.

  • It features an indoor pool…

    PHOTO SUPPLIED BY SOTHEBY’S INTERNATIONAL REALTY QUEBEC

    It features an indoor pool…

  • ... and a bar.

    PHOTO SUPPLIED BY SOTHEBY’S INTERNATIONAL REALTY QUEBEC

    … and a bar.

  • The terrace offers a view of the marina.

    PHOTO SUPPLIED BY SOTHEBY’S INTERNATIONAL REALTY QUEBEC

    The terrace offers a view of the marina.

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hudson

  • Built in 1792 at 18 rue Chipman's Point in Hudson, the house stands on the edge of Lac des Deux Montagnes.  Its price: $2,798,000.

    PHOTO SUPPLIED BY SOTHEBY’S INTERNATIONAL REALTY QUEBEC

    Built in 1792 at 18 rue Chipman’s Point in Hudson, the house stands on the edge of Lac des Deux Montagnes. Its price: $2,798,000.

  • The house has been completely renovated while retaining its historic character.

    PHOTO SUPPLIED BY SOTHEBY’S INTERNATIONAL REALTY QUEBEC

    The house has been completely renovated while retaining its historic character.

  • The property offers panoramic views of Lac des Deux Montagnes.

    PHOTO SUPPLIED BY SOTHEBY’S INTERNATIONAL REALTY QUEBEC

    The property offers panoramic views of Lac des Deux Montagnes.

  • The kitchen is equipped in particular with a gas stove.

    PHOTO SUPPLIED BY SOTHEBY’S INTERNATIONAL REALTY QUEBEC

    The kitchen is equipped in particular with a gas stove.

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Susan Lloyd and Géraldine Libraty, real estate agents at Sotheby’s International Realty Québec

How do you set the prices?

You have to consider the neighborhood and not just the house, explains Susan Lloyd. I look at what has sold in the industry over the past six months and then compare. Does this house have more land, is it on the edge of a creek etc.? ? Every element is important. Sellers are given a price range and mostly choose the high-end. We then see the reaction of the market.

When can the offer price change?

We have to adapt to supply and demand, says Géraldine Libraty. The market has fallen in recent months. This prompted us, for example, to lower the price of the XVIII century housee Century, in Hudson, completely renovated. The property now costs less than 3 million, which was the original price.

Would it be wrong to compare these two properties even though they are offered at the same price?

Their only common point is that they are at the water’s edge, warns Mme Library. There are many criteria to take into account. They are two completely different houses and two properties that stand out in their own way. They are not in the same neighborhood. Nor are they likely to target the same buyers.

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