Who or what decides the real estate market? The market does. A buyer or a seller might think so. Realtors, their clients, marketing gurus, and advertisers think they do, and the senior levels of the government think they do.

“Those who have knowledge don’t predict. Those who predict don’t have knowledge!” Lao Tzu

Pundits and economists profess that supply and demand dictate the real estate market.

Who is the market? What is the market?

The market is somewhere between expectations and reality.

The reality is what a motivated, willing, and capable buyer is willing to pay and what a motivated, willing, and capable seller is willing to sell for.

Not six months ago, not six months from now, but today. Tomorrow, who knows?

That adage ‘Location, Location, Location’ is now ‘Price, Desire, Location.’

Some constraints may inhibit a buyer or a seller, but it is not the market; it is a case of mistaken perceptions!

“Where is the knowledge that is lost in information? Where is the wisdom that is lost in knowledge?” T.S.Eliot

Just a thought!

Before buying a home in London, Ontario, the one single element that will determine how well you & your real estate representative negotiate your offer is:

How MOTIVATED Is the Seller And How MOTIVATED Are YOU

Has the house been on the market for 30 or more days? Is it because the seller is not motivated enough to sell?  Or perhaps the house hasn’t sold by now, and he/she is very motivated.  Or, they are fishing for a price, or (in most cases) by the time they pay off their mortgage and other debts, no money is left at a reduced price!

And if you’ve been transferred, have your home listed, and you wish to downsize, or another child on the way and your house is too small, or your neighbourhood is a proctological pain, or you’ve had it with your landlord, you may be very motivated to buy!

Nevertheless, here’s a tip you must bring to any real estate transaction:

    Avoid Emotional Attachment for the Home You’re Considering

If your heart is racing about the home and you can’t hold back your emotions when thinking about the house, then you won’t do well when negotiating the purchase price. In some cases, money may not be the issue; it could be the layout, neighbourhood or perceived lifestyle.

What’s the single best piece of information you can have?

Besides my phone number, it’s the comparable sales and market data for the entire market and the area, plus the assessed values for five houses on each side of the house and ten across the street from the home you are interested in.

 Four Prudent Things To Know Before Making an Offer on a Home in London, Ontario

1. look at the area’s currently active (for sale) listings.  Is the place you’re considering priced within reason to other properties?   If so, you know you’re at a reasonable starting point.

2.    Now, look at the average selling price compared to the listing price.  You may notice that most homes in London sell for 96% to 100% of the asking price. Take this into consideration when making your offer.

3.    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 shape?  Is it laid out better on the lot?  Is it bigger, smaller, better style, better landscaping, etc.?  These factors will help you determine how much you should pay vs. how much others paid for similar homes in the neighbourhood.

4.    Now, look at the average market times for listings in the area.  If they’re long (evaluated on a market-by-market basis), the market may be soft, and you might have more negotiating room. If they sell within a week or less, you may be paying full price or, in some cases, more!

You’re now ready to make your offer.

More Tips on Buying a Home

Buying a house or a condo is a big decision, not only financially but emotionally. This Home Buyers Guide London offers a few ideas and tips to help you feel prepared and confident throughout the process.

Prudent Home Buyer Tips

 There are income property seller mistakes or errors that some owners may not even know occur! Or, if so, they may stick their heads in the sand and plead, “There’s nothing I can do!”

I have been fortunate to help buyers who wanted to buy a condo or a 4-6 bedroom house near Western for an investment, for their son or daughter, and have friends move in. That way, to build equity or cover some of the expenses of getting an education.

Two wanted a medium—to high-end condo near Western for one of their children, and they could have a friend move in.

I have seen these mistakes before, but these buyers had not, and the most common comment I heard was :

“Do they want to sell this building (condo)?”

The most significant drawbacks to why we did not submit or even consider submitting an offer.

• The listing Realtor never called us back! Wow, you, as an owner and your Realtor have a $677,000 property, and they don’t call you back after three attempts? (By the way, that building is still listed for sale!)

• My clients and I arrive, but can’t get into the rooms. The tenants say they were not notified or given enough notice. Whether the tenant is correct or not, it would behoove you as a landlord or the Realtor to ensure that ALL tenants are notified and reminded before a showing. Either by email, text, in person, smoke signals, notice on the door, telegram, fax, Morse code, or even Pokémon!

• In some 4-6 bedroom houses,  we can only see one or two bedrooms because our keys don’t work!

• The stated rental income or the comment “If fully rented, the potential rent is” is unrealistic. In my experience, tell it like it is. Someone willing to buy your property is not dumb or lazy, and they want real numbers, no B.S.

• In one condo we saw, the fees were off by $113.00. There was one parking spot, not two, as indicated!

• Some will not cooperate with a Fire Marshal’s report or ESA Certificate. Some are not legal duplexes or triplexes. A Realtor or owner tries to tell me, “Don’t worry. It’s been like that for years; nobody will ever find out.” Yeah, right!

• Most Realtors did not have much experience with investment properties. Residential listings, investment listings, and even condo listings are pretty different. They can be more complex, and they require a different skill set to handle.

Diligence Should Not Be Difficult!

The above are just a few challenges. I haven’t even reached the offer stage yet!

Also, incorrect information was provided regarding property size, room sizes, taxes, outstanding work orders from the city, city violations of the building code, and three mortgages and liens on the building!

My clients and I cannot change the condition or situation we are dealing with, so it is unlikely any emotion will be helpful. I can’t change the obstacles; that part of the equation has already been set. However, how I approach them to find a solution is something that my clients and I can control!

So, ultimately, my clients found what they were looking for at a price point they were happy with.

If it sounds like I am ranting against the disorganized, lazy, and unwashed people who represent property sellers, I am. I also praise and thank the professional who is organized, diligent, has the correct information, and is willing to make an effort to ensure a transaction gets done. 

Preventing and fixing income property seller mistakes should not be a hassle!

More Income Property Tips & Prudent Things To Think About

Before making an offer on a home in London, Ontario, there are four things you may want to know first, and the most fundamental element to keep in mind is:

How MOTIVATED Is the Seller And How MOTIVATED Are YOU

Has the house been on the market for over 30 days? Is it because the seller is not motivated enough to sell? Perhaps the house hasn’t sold by now, and the seller is very motivated. Or are they fishing for a price?

If you’ve been transferred, have your home listed for sale, your lease is up, you wish to downsize, another child is on the way, and your house is too small, your neighbourhood is a proctological pain, or you’ve had it with your landlord, you may be very motivated to buy!

Try To Avoid Emotional Attachment to the Home You’re Considering

If your heart is racing about the home and you can’t hold back your emotions when thinking about the house, you won’t do well when negotiating the purchase price. In some cases, money may not be the issue; it could be the layout, neighbourhood or perceived lifestyle.

What’s the single best piece of information you can have? Besides my phone number (I couldn’t resist), it’s the comparable sales and market data for the entire market and the area.

 Four Important Things Before Making an Offer on a Home in London, Ontario

1. Look at the area’s active (for sale) listings.  Was the house you’re considering priced within the range of other homes?   If so, you know you’re at a reasonable starting point.

2.    Now, compare the average selling price to the listing price. Consider this when making your offer.

3.    Make sure you visit several 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 shape?  Better sited?  Bigger, smaller, better style, better landscaping, etc.?  These factors will help you determine how much you should pay for your home vs. how much others paid for similar homes in the neighbourhood.

4. Look at the average market times for listings in the area. 

Now, you may or may not be ready to make an offer!

Before Buying a Home Essentials

What are your decisions when buying that particular house or condo based on?

This London Ontario Home Buyer’s Guide May Help!

Of all the things homeowners control when selling their home in London, Ontario, the condition of the house or the condo is one of the most important.

A crucial part of marketing any product is the presentation. The same is true for real estate. To compete effectively with other homes on the market, homeowners must present their homes in an attractive, desirable condition to the marketplace.

You may not be able to change room layouts, sizes or locations, but you can choose how your place creates first impressions. whether it is an apartment, a townhome, a single-family detached home, or a $400,000 or a $1,500,000 place! You would be surprised by how many homes I have shown over the years, regardless of price, were appealing and ones that were not!

Untidiness, disarray, blemishes, lights not working, cobwebs in the furnace room, dirty furnace filters, and junked-up rooms are prejudices against you receiving offers on your home that will get you your asking price or close to it!

When you bought your home, you probably comparison-shopped. According to the latest Realtor stats, the average purchaser looks at 8 to 12 properties before purchasing a home.

THINK LIKE A BUYER!

You are not just selling a house; you are selling shelter, lifestyle, and dreams. Buyers arriving at your front door want to find the right home, so don’t make them search elsewhere.

If you do your homework, every room in your home will create a desire for the buyer to stay. And when they stay longer, they like your home and are getting closer to making an offer!

Do not lose them!

When buying a house or a condo in London, Ontario, and the area, the last thing you need is unbudgeted financial obligations as a home buyer; some or all of these could apply!

Purchase Price and down payment
The starting point in your calculation.

Lawyer’s Fees
Although fees vary across the country, it can cost up to $3,500 depending on whether you are re-mortgaging your existing home or buying a new one.

Land Transfer Tax
It is a tax payable to the Provincial Government by the purchaser upon the transfer of title from a seller. Land Transfer Tax Ontario.

Registration Fees
Fees are paid to the provincial government for recording a title transfer, mortgage registration, or other instrument, such as an Assignment or lien, with the local authorities.

Compliance Letter
This is an acknowledgment from the building department that the property has or is clear of outstanding work orders. Work orders are specific clean-up or fix-up requirements the owner must legally complete before ownership can be transferred. They are obtained by your lawyer and are required in many municipalities throughout Canada before a property transfer can take place.

Taxes
Your lawyer obtains them at the time of sale to confirm that local taxes have been paid and are up-to-date. If they are not up to date, the seller must pay them from the sale proceeds. You may be legally required to pay the outstanding taxes if insufficient proceeds exist. If, on the other hand, taxes have been prepaid, you may have to compensate the seller for them.

There’s More!

Provincial “New Home Warranty Program” premiums — New Homes Only!
A third-party (provincial) warranty program between a builder and a buyer. Except for Ontario and Quebec, the builder’s membership in such a program is voluntary. Through these programs, your home is guaranteed against defects for at least one year. Tarion Ontario.

Mortgage Appraisal and Application Fees
Application fees apply on high-ratio mortgages only, while appraisal fees are standard to most mortgages. Generally, $200— $500 each would apply.

Home Inspection
A report commissioned by a property owner or purchaser is usually used to verify the condition of a property before the “firming up” of a purchase agreement. The scope and detail may vary, but most reports outline any particular problems and associated repair costs. Unfortunately, no licensing is required, and this service is not specifically regulated other than by general consumer protection legislation. The best safeguard against inadequate work is to ask for the inspector’s resume.

Land Survey
The legal written and mapped description of the location and dimensions of your land. The survey should also show the dimensions and placement of any structure, including additions such as pools, sheds and fences. A lender may require an up-to-date survey as part of the mortgage transaction. However, obtaining Title Insurance is more prevalent, and a survey may not be necessary.

And More!

Title Insurance
Title insurance protects residential or commercial property owners and their lenders against losses related to the property’s title or ownership. Understanding Title Insurance

Connection Charges
Some local utility companies (hydro, gas, oil) charge a fee on the closing date to connect new buyers to their service. However, an extra charge on the first billing is more common.

Property Tax and Prepaid Utilities Adjustments
If the previous owner prepaid property taxes or other utilities, they will be credited the prepaid portion on closing. If they paid all their taxes by April, expect a significant adjustment in closing costs!

Interest Adjustment (IA)
Suppose you arrange to make your mortgage payments monthly on the first day of the month, and your transaction closes after the first day. In that case, your lender will charge you interest on closing to the next interest date, called the Interest Adjustment Date (IAD), when your payment cycle begins. This can be a sizeable amount, but it is the correct interest you should pay. For example, close on June 15th, pay 15 days of interest on closing and start payments on August 1st.

Property Insurance

   Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured, as it protects their investment in the loan.

Movers

Avoid the end or beginning of the month; that is when movers are busy and will most often charge you more!

Miscellaneous!

More Home Buyer Tips

Buying a house or a condo is a big decision, not only financially but emotionally. This Home Buyers Guide London offers a few ideas and tips to help you feel prepared and confident throughout the process.

Get Your Free Home Buyer’s Guide London, Ontario Now!

Waiting until it is too late to downsize a house in London Ontario, has many pitfalls; sometimes, fate decides when it is too late.

Relatives of mine loved their home, took pride in their garden and large private backyard. They were more than comfortable in their neighbourhood after 30-plus years. There came a time when the garden was too much work. The snow clearing and repairs around the house became difficult. They hired out those jobs for a few years, but the care was never satisfactory to their standards.

For years, their adult children and friends suggested they move to a bungalow townhome or semi-assisted living. In all respects, stubbornness and pride said no.

Then, the wear and tear of advancing years started to take its toll. Managing the house, the stairs, and the upkeep was too much. They listened to their children, sold the house, and moved to a lovely two-bedroom + den retirement building.

“I wish we had done this sooner,” was all we heard after they moved. Unfortunately, within two months, one passed away!

My advice? Give yourself the time to downsize a house in London Ontario, on your schedule. Do not be forced to!

As complex as the decision is, do the deed before you can’t wait or are forced to move because of health or finances.

More Tips and Insights of Downsizing