Before buying a home in London, Ontario, there are five critical numbers you need to know—and absolutely the definitive sixth! The market has decisively shifted, moving from a frantic seller’s environment to a more balanced, buyer-friendly landscape. Your successful offer relies on using the current market data to negotiate with the authority and posture.
1. Active Listings vs. Market Inventory: The 6.0 Month Advantage
First, look at the area’s active (for sale) listings. But more importantly, recognize the overall market shift. Recent LSTAR data show we have 6.0 months of inventory. This indicates that supply is high and competition among buyers is low. Is the home you’re considering priced within reason compared to others? If a seller is chasing an old peak price, they will be unsuccessful in this high-inventory market. Use the abundance of listings as leverage.
2. The Sale-to-List Price Ratio: The 97.0% Negotiation Zone
Compare the average selling price to the listing price. Historically, London homes have sold near or above the asking price. The average sale price of $622,805 reflects a much softer market, with homes selling for approximately 97.0% of the asking price. This statistic is your mandate: it confirms that a 3% negotiation is the norm. The best way to upset a home seller is still to start with an unreasonable, deep-discount offer, but you can confidently target a fair reduction based on solid data.
3. The Condition and Comparison Ratio
Now, visit several of the other listings in the area. How does your choice compare to the others on the market? Is the home you’re considering in a similar condition? Is it bigger, smaller, a better style, better landscaping, etc.? These factors, especially in a market with high inventory, will help you determine how much to offer relative to what others paid for similar homes. Poor condition now warrants a much deeper price cut than it would have a year ago.
4. The Average Days on Market (DOM): The 29-Day Threshold
Now, look at the average days on the market (DOM). London’s median DOM is currently around 29 days. Priced right, just-listed homes still sell relatively quickly. However, a property that sits for 45 to 60 days or longer indicates a critical flaw—usually overpricing—thereby allowing a much wider negotiating range. If a home has been on the market for over a month, the seller will likely be much more open to a low, conditional offer.
5. The Assessed Value vs. Market Price Percentage
What is the percentage difference between the municipal assessed value and the current market price? This highly technical number provides a safety net, preventing emotional overpayment. (I have an excellent formula for this and have found it right on the money over the years!) Knowing the correct numbers for buying a home in London, Ontario, will make your life much easier and your offer successful.
You are now ready to make an offer. The strategy here is imperative: keep emotion and fear of missing out (FOMO) out of the equation.
I said there were six numbers; here is #6, the one that makes the difference between an average deal and a great deal: 519-435-1600! I couldn’t resist!
Comments:
Post Your Comment: