Who decides the market? Why? When? Understanding the London, Ontario real estate market is quite simple!

You can study all the statistics you want, gaze into crystal balls, or get advice from a meteorologist(weatherperson), a Realtor, or a Mortgage Broker, your relatives or co-workers.

In Hyman Minsky’s ‘Financial Instability Hypothesis,’ here goes:

• When an economy is stable, people get optimistic

• When people get optimistic, they go into debt

• When they go into debt, the economy becomes unstable.

Since Adam and Eve wanted more than an apple and bought their first home, history repeats itself—maybe not history, but people do.

Those who say they can time the market walk away. Is the Spring, Summer, Fall or Winter the best time to buy or sell a home? The best time is when you want, not have to!

There are outliers to this hypothesis of understanding the London, Ontario, real estate market.

• Being transferred between cities

• Marital challenges

• Death

• Need to Sell

• Don’t need a mortgage

• A need to impress someone

• Ignoring reality

• Wanting to downsize

Beware of Real Estate Experts

Full Disclosure:

• I am a Realtor

• I am classified as a Senior

• There are some things I know

• There are a lot of things I do not know

• I am right-handed

As you can see, I’m normal, aside from being a Realtor, because I keep my perspective on the London, Ontario real estate market in line with reality.

I have experienced all the markets in Southwestern Ontario, lived through them, and survived them—as did my clients! That is not to say that the market eye-opener the COVID debacle created will recur; not reacting and responding instead is more progressive than harmful!

A house or a condo is brick and mortar, a home is you, your comfort zone, your reward at the end of a day to come home to!

The most essential thing homebuyers want from a Realtor is risk management! Yes, arranging for showings, referring mortgage providers, home inspectors, and lawyers is not risk management. That is providing a service and a responsibility of the profession.

Over the years, I have helped hundreds of buyers from all income groups, ethnicities, and cultures, from investors to first-time buyers. Ultimately, buyers want to feel confident that their decisions were correct and aligned with their comfort zone.

Some buyers’ perspectives: 

• “Am I paying the right price for this home?”

• “What if something major goes wrong with this place I’m buying?”

• “Are the interest rate quotes I got from my bank good or bad?”

• “Are interest rates going to go down?”

• “What will happen if I feel in one year that this place is not for my family and me?” “My kids hate the schools more than I do?”

• “What happens if I get transferred, or laid off, or my company shuts down?”

• “I want to buy a place. What about down payments, insurance, home inspections, lawyers, and movers?”

• “Is this a Realtor who is transactional or transformational? How can I tell?”

• Add your fear or concern here: ___________________________________________________________________________

Buying a home today can be an emotional experience, not a financial high-wire act.

How do I define risk management for home buyers?

• Listening and understanding a buyer’s needs and wants, ‘it would be nice,’ and if?

• Explaining the reality of what they want and need regarding their buying power with facts, not opinions.

• Investing the time to explain the buying process from start to finish and afterwards can be boring for an excited buyer; they want to see properties! However, without reviewing the buying process and the what-ifs, jumping into a purchase off the bat leads to emotional exhaustion and buyer’s remorse.

The two links below will help you find more ideas, tips, and prudent methods for buying a home in London, Ontario! This is what I think homebuyers want from a Realtor and nothing less!

Home Buyer’s Guide London, Ontario
Condo Buyers Guide London Ontario

I started writing this blog post about real estate experts, but it kept getting longer and longer. It was about all the so-called experts, gurus, economists, relatives, hairdressers, etc.

Instead, I have enclosed some quotes that may help you distinguish between an expert and someone who talks like one!

• Mark Twain said kids provide the most interesting information because they tell all they know and then stop. Adults lose this skill and go on babbling!

• “The wise in all ages said the same thing, and the fools, who at all times form the immense majority, have in their way, too, acted alike, and done just the opposite!” Arthur Schopenhauer

• “Focus is the art of knowing what to ignore”. James Clear

• Using words to plead your case is risky business. Words put you on the defensive. If you must explain yourself, your power is already in question.” Robert Greene

• ‘If someone we know took traffic signals personally, we would judge them insane!” Ryan Holiday

• “A wealth of information creates a poverty of attention.” Herbert Simon

• “When two people believe opposite things, chances are that one of them is wrong.” Ray Dalio

Don’t get me wrong, there are experts in many fields; if I need heart surgery, I go to a heart surgeon, but I don’t ask her for real estate advice. My barber knows more about hair than I do. I don’t ask him about real estate advice or even listen.

I end with my two favourite sayings about real estate experts:

• “A rational person (realist) never leaves their interests at the mercy of any one person.” Ayn Rand

• “Big hat, no cattle!”

What does a threshold price for buying a home mean or matter?

A threshold price is one at which you can be confident that you are offering a fair price and that, in the future, if the market does take a downturn, your financial world will not be turned upside down.

I have been in several offer situations, won some, and some say ‘lost some,’ but my clients can’t lose something they never had. My clients and I set a threshold price and stick to it; we try to keep emotion out of it and avoid one of the biggest motivators in the world: “fear of missing out.”

Not long ago, homes received 7-15 offers without conditions, and some sold 12-18% above the asking price.

Jim Rohn wrote: “The pain of discipline weighs ounces; the pain of regret weighs tons!”

Speculation is dreaming, and though we read about the money that less than 5% of speculators say they make, we very seldom hear about the other 95% of speculators who lose. It may not be in the short term, but second and third-order consequences can come back to haunt you.

History does not repeat itself; only humans do.

I have rearranged one of Warren Buffett’s beliefs and changed the word stock to property: “It is far better to buy a wonderful property at a fair price than a fair property at a wonderful price.”

If you are in the market to buy a house or a condo in the London, Ontario, area and want a prudent advisor and Realtor to help you with your threshold price, what more can I say?

Being flexible for buyers to see your home in London, Ontario is essential. Have you considered how and when buyers will see your home?

If possible, schedule showings in the same way most homes in your area are shown. This may be by special appointment or by a lockbox system.

Remember that this will be the buyer’s first contact with your home, and it should set a positive tone.

  Make the buyer and their Realtor feel welcome.  Be as flexible on timing as possible.  The buyer may be viewing many homes over a large area.  (The average buyer sees 4-9 homes before making a decision)

  While having people traipsing through your place can be inconvenient or disruptive, keep in mind that if a qualified buyer is willing to spend hundreds of thousands of dollars on your home, be flexible.

Why?

  Would you go elsewhere if you wanted to buy a car on a Thursday afternoon and one dealership was closed? Or are you in London with your family for the weekend only, and cannot see some homes because the seller is too busy or tired? ( True story: a $750,000 house, and the seller was too busy and had no time to keep the house tidy!) By the way, that house sold one month later for $709,900.

  I recall instances in which the seller was hostile and demanded an explanation for our 5-minute delay. Last weekend, my clients and I arrived at the house we had scheduled to see (11:30 AM to 12), arriving at 11:55 AM. The man in the house ranted and raved that we were disrupting his day and yadda, yadda! We left, never even getting past the screen door. By the way, the house had been on the market for 51 days! Hmmmmm! I wonder why?

  Many people are reluctant to intrude on or bother other people. Remember that the decision to buy a home can be emotional and stressful. You will most likely feel the same way when selling your home.

As a home seller, you do not have to go overboard, but be flexible; that next buyer could be the one!

Want More Valuable Home Seller Tips?

How organized are you before selling a London home? How important is:

• An inadequate or poorly written description of your property.

• No video or a poor one

• Floor plans?

• Accurate Taxes.

• What’s included in the asking price?

• Is the square footage.

  Double-check and double-check again!

Homebuyers and their Realtors search daily for specific neighbourhoods or something new when their excitement is usually at its highest! Please do not confuse or alienate them!

In most cases, home sellers are unaware that misinformation is occurring. They may not know that potential buyers and their Realtors have bypassed the listing, disregarded it altogether, or are either frustrated or pleasantly surprised when they view your home.

Below are some reasons your home may not get the exposure and action you anticipated.

• The sign goes up, but the Listing Realtor has not submitted the listing to the office yet, so the office has no record of it and does not know who the Listing Realtor is. Buyers drive by; they call the office and get nowhere.

• The Realtor has not promptly entered the listing into the Multiple Listing Service (MLS). Again, the buyer may not see it for a day or two, and their Realtor will not see it in their frequent searches for new listings.

• The listing appears on the MLS, but when the buyer and Realtor arrive, the lockbox isn’t active yet; no keys have been cut. If you are not home, the buyers may reschedule a return visit if they have not made a purchase.

• Your house listing is not yet available on other websites, blogs, or social media. (Is that not important?) The latest data shows that buyers preview homes online 94% of the time BEFORE they visit in person!

There’s More Before Selling a London Home!

•  The MLS listing has mistakes. Room sizes are wrong. Poor pictures or not enough pictures. (Last week, I showed a $839,000 house to some of my good clients, and they initially declined to see the property because of the poor or inadequate pictures.) Their interest was piqued after seeing the house, but they did not make an offer.

•  The showing instructions indicate that the “call agent for appointment” should arrange showings, but the Realtor does not return the call or, if they do, does not return the next day. The buyer’s Realtor calls again to schedule a time and leaves a message or a page. The window for showing comes and goes, and the buyer cancels the appointment to see the property. Believe it or not, this can happen two or three times before they can finally get in!

•  The buyer and their Realtor arrive at your door without notice. Or, they show up at your door when you explicitly told the listing Realtor you did not want any showings. The buyer and Realtor leave or are uncomfortable if they do go through your house. All because someone did not notify you.

• You do not get any feedback about the showings that have taken place.

• You do not know why you have not received an offer yet.

• You are unaware of whether there is anything you can do or change to help sell your home.

• The listing Realtor does not know either because they did not ask the showing Realtor for feedback.

• They have not recorded who viewed your home or their comments.

Oh No!

You may think that the above is rare, but it is not! Frustration mounts for a buyer, they and their Realtor think:

 “Am I going to get in”? “Is the home seller serious about selling?”

If buying a car, the salesperson said he/she would get the keys so you could take a test drive. Then, if they never returned the keys, you would finally move on to another dealership, wouldn’t you?

Your listing Realtor’s credibility transfers to you and your property. If the lack of credibility begins with the property showing, the buyer and their Realtor wonder what other problems they will encounter.

Listing with a Realtor with a reputation for being thorough will never harm you.

• Who has a strong web presence?

• Has a thorough, consistent follow-up system.

• Has the financial capacity to see your property through to the final stages without being pushy.

Ensure that:

• Keys are cut and stored in the secure Supra Lock Box (not a contractor box for $39.95).

• Listing brochures, presentation folders, or pertinent information is in place.

• The sign is installed with directional arrows at each corner.

• The listing is active on MLS.

• Ensure the Realtor has a system for you to view comments and feedback about your house..

• Do they have a checklist they share with you before your house is even listed on the MLS?

Do not let others get in the way of selling your home. Why not make it easy and comfortable for buyers and their Realtors to see your home and make an offer? You are always in the loop, informed, and willing to sell your home.

In summary, the most critical time for selling a London home is BEFORE it goes on the MLS.

More Home Seller Tips

I should warn you before you read further that my comments about why some London Ontario apartment condos take longer to sell are based on frustration and exasperation. I do not imply that the events that occurred will happen again. (Can pigs fly?)

My clients were interested in downsizing from their 2-storey home and in seeing 2-bedroom units in this particular building, all within $35,000 of each other in price. 

We chose a Thursday for the viewings, so I arranged showings on Tuesday morning. Five were listed for sale because we were interested in only this building.

One Realtor replied within an hour that the scheduled time would be fine. Another responded the following day, and one responded in the afternoon that it was acceptable to show the units. As I had not heard from the other two, I called their offices and used our appointment scheduler, Broker Bay. One called back immediately and apologized, stating that she had forgotten to confirm.

I have not heard from the other realtor, even after three attempts. Three weeks later, this condo is still listed for sale.

Checking The Facts

The evening before the scheduled showings, I did some homework. I retrieved all sales in the building over the last two years. Even called a past client (who had purchased from me years ago) in the building. I asked how happy she was and if she had any complaints. How the property manager was, and how solid the condo corporation was. Other pertinent questions that would enable me to inform my clients about the building's condo culture.

I retrieved the city’s current unit taxes, and two out of five were accurate, as shown on the listing data form. I don’t mean by a few dollars; in one case, there was a $ 1,732.00 difference.

The condo fees shown for all five units differed by $166.19. How can that be? Subsequently, after checking and speaking with the property manager, I found that only one condo unit had an accurate, current condo fee. That was because the listing Realtor had a current status report ready.

Fair is fair, I thought. Mistakes happen, and I will include clauses if my client decides to submit an offer to verify all condo fees, taxes, and any other discrepancies.

The Day of Reckoning

On the day of the showings, I meet my clients in the lobby, where lockboxes hold the keys for entrance to the building and individual units. My day is not starting well. Nine lockboxes were identified, only one of which included the unit number. Opening a few, some keys were tagged with the unit number, but some weren’t. My male client thought this was funny or laughed at me because I have only 4 pockets on my pants and could only keep track of 4. He also had four pockets, so he helped!

A couple of the units we saw were, according to the listing data, equipped with appliances, room sizes, and amenities. One unit was a disgrace, one unit, the occupant would not let us in (Nobody told me you were coming, she said). Two units were out to lunch in the price.

We return to the lobby and play Russian roulette with the keys and lockboxes again! I say to my clients, “ Well, what do you think?” with a straight face.

Other than the usual comments like poor layout, overpriced compared to others, and the condition of the units, my clients just kept shaking their heads and asking themselves, “Is this what they want to do or move here?”

The Outcome

They did not purchase anything that day. One week and two buildings later, they purchased a beautiful unit they liked. They know, and my past clients know why I work with just a few clients at a time. Preparing thoroughly before every showing due to a lack of confidence in the listing data is time-consuming. It creates some mistrust of MLS listings among buyers.

Again, I want to reiterate that not all real estate agents are like those mentioned above. If you do list your condo, check weekly that the information on the listing is accurate. This will ease the buyer’s uncertainty and prevent you from having your condo sit on the market while others sell!

Note: I wrote this four years ago. Pigs have not yet learned to fly; I have encountered similar challenges twice this year.

More Tips When Selling a Condo in London Ontario

Your emotions when buying a home in London, Ontario, and your ability to control them will determine the price you pay. Before buying a house or condo in London, Ontario, the single element determining how well you and your real estate representative negotiate your offer is…

How motivated are you and the seller?

If the house or condo has been on the market for two months, the seller may not be sufficiently motivated to sell. Or the seller may be highly motivated or fishing for a price. No money is left over when they pay off their mortgage and other debts!

If you’ve been transferred, have your home listed, and wish to downsize, or have another child on the way, 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!

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

Avoid Emotional Attachment to the Home You’re Buying

If your heart is racing about the home and you can’t hold back your emotions when thinking about it, you won’t do well 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?

In addition to my phone number, it includes comparable sales and market data for the entire market and the area, as well as assessed values for five houses on each side of the house and ten across the street.

 Why?

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

• Now, compare the average selling price to the listing price.  You may notice that most houses in London sell for the asking price or slightly above it.  If that’s the case, you know the original offers were less than this amount.  Take this into consideration when making your offer.

• Now,  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?   Is it bigger or smaller, or does it feature a better style or landscaping?  These factors will help you determine how much to pay for your home compared with what others paid for similar homes in the neighbourhood.

• 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 with your offer.

• What is the percentage difference between assessed values and market price?

You’re now ready to make your offer and negotiate buying a home. This is where strategies come into play and are one of the most essential steps in the buying process. Most either overpay, fail to get the home they want because of poor negotiation, upset everyone, or lose a lot of sleep!

You most likely have researched prices and a sense of what your house or condo should sell for, or have asked a Real Estate Agent or two.

What your home should and will sell for depends on the following:

•1.       Understand that your asking price will define the expectations and limit the number of buyers who see your home.  An unreasonably high asking price will create unreasonable expectations from buyers.

•2.       Understand that the number of potential buyers for your home is finite.  Every appointment request you refuse or delay responding to will significantly limit your Realtor’s chance of receiving an offer and increase the time needed to sell your home.

•3.       Understand that every day your home is on the market is a day closer to a price reduction and failure to sell.  Housing data indicate that your home has a higher market value today than at any time during the listing agreement.

•4.     Understand that buyers typically view between four and 12 homes.  Your home needs to be in the first place to get them to make an offer.  You will not get a decent offer if the price, condition, and presentation are not number one.

When people think of a condominium status certificate, they believe it concerns the amount of money in the reserve fund. The myth that has grown around this is that a condo corporation with a large sum of money is in better shape than a condominium with a much smaller sum.

When buying a condo, a status certificate provides information on the condominium corporation’s operational, legal, and financial stability.

The property manager is asked to provide a condo status certificate upon request from you, your lawyer, or your realtor. The property manager has up to 10 days to deliver the Status Certificate to the requester. The cost is generally $100 to $ 150.

When I list a condo for sale, I pre-order and pay for a status report.

• The condo owner and I are aware of any issues or warning signs.

• I can answer buyers’ questions accurately.

• I speed up the offer by providing the status report to the other Realtor and their lawyer.

The condominium corporation's bylaws and rules most directly affect owners’ enjoyment. The bylaws explain to owners how a building, townhouse, or townhome is run on a general level.

The Condominium Authority of Ontario has excellent articles that I highly recommend you read when purchasing a condo in Ontario.

This London Condo Buyer’s Guide Has Further Tips and Ideas

Contrary to popular belief, when selling a home in London Ontario, value is determined by only one thing. What a qualified buyer is willing to pay: no more and no less.

How important is price? Everything!

Who Controls The Real Estate Market in London Ontario?

Many homeowners think their house or condo has an insurance replacement, appraised, or tax-assessed value. Unless your insurance agent, banker, or appraiser is willing to write you a cheque, guess what? It means diddly squat!

A home without a buyer has no value in the marketplace.

Here is the key to pricing your home to sell. What a reasonable buyer thinks your home is worth will ultimately determine its sale price.

You may think, “Hey, wait, if I left it up to a buyer, they would pay me as little as possible”! True, they would. But in the real world, a knowledgeable buyer knows that you, the seller, have no obligation to sell your home at any price. To purchase your home, the buyer must make you an offer you can’t or won’t refuse.

One that will motivate you to pack up all that ‘stuff’ you haven’t used in years. Hire a local mover, and wave goodbye.

But here lies the trap many fall into (I did once): the mistaken idea that we can hold out for an inflated price and eventually the market will come to us.

Wrong!

Buyers are not obligated to buy any particular home. No amount of marketing, open houses, websites, praying, wishing, dreaming, or deceiving yourself can motivate a buyer to purchase an overpriced home.

Why?

They can buy elsewhere for less or wait. This reveals one of the essential considerations in pricing your home: price vs. time.

Understanding Price VS Time

What is more important, price or time? 

Price and time control every seller’s decision to sell and every motivated buyer’s decision to complete a purchase. For sellers, this comes down to either selling within a set timeframe or holding out for the best possible price. For buyers, buying within a set timeframe or securing the lowest possible price is essential.

A seller who wants to sell for top dollar should be prepared to potentially wait longer for a buyer willing to pay a premium price. Conversely, a seller who needs to sell quickly and doesn’t have time to wait should expect to discount their price somewhat because of their limited time to expose their home to the market.

What’s the difference? Timing!

Buyers are in the same boat. A buyer shopping for a home over a long period can probably wait for a bargain, or wait and wait and wait. Another buyer who must buy a home in the next few weeks will probably be willing to pay a premium. Again, it boils down to price vs. time. So you might ask yourself: what is your highest priority—selling quickly or selling at a higher price?

When I ask my clients this question, they often smile coyly and answer: I want both! 

Some homeowners will entrust their realtor with securing the highest price and a quick sale. The result can be summed up in one word—frustration. Why? No matter how much a seller blames, ignores reality, or finds fault, Realtors don’t walk on water!

This is why successful sellers understand that while a Realtor’s responsibility is to provide marketing, expert advice, and negotiation services, the Realtor does not own the property. They don’t make the final pricing decisions. The seller does, and ultimately, the seller’s asking price will largely determine how quickly or slowly the home sells.

To frame this discussion differently, consider what you will do at the end of your two- to three-month listing period, when the home has not yet sold. Are you more likely to give it more time or adjust your price at that point? Or, get another Realtor?

Does it work?

Sometimes, it does, but often, sellers end up three months later in the same slow boat to nowhere. Successful sellers take ownership of pricing decisions by clearly deciding whether to prioritize speed or top dollar.

Successful sellers have learned that accurately pricing their home requires thinking like a buyer: getting inside a buyer’s skin and seeing the world through the buyer’s eyes. For instance, imagine for a minute that you are moving to another area of the country, to an unfamiliar city. What would be your first step if you were faced with buying a home in a strange town?

Most buyers would likely start online, viewing website listings to get a general sense of local home prices. Next, narrow your search to a specific community or neighbourhood by comparing utility costs, school reports, and crime statistics with other online tools. Feeling good about your findings, you might venture into the real world to begin viewing homes in person.

The average buyer looks at nine to fourteen homes over eight weeks with the assistance of a real estate professional. By the end, most buyers become so knowledgeable about the market that, by the last showing, they can estimate each home's listing price with reasonable accuracy before the Realtor can tell them.

So what happened here? As a buyer, from a blank slate with no impression of the market, to being able to predict listing prices. It is a big leap, sure, but this description is exactly what most buyers experience. However, this is only the build-up; the next step for buyers who have found their dream home is to review a comparative market analysis.

A What?

A Comparative Market Analysis is a report that compares a specific home with other homes within a particular neighbourhood. This analysis then provides the subject property’s anticipated sales price or price range.

Although not formally an appraisal, the report serves a similar function by providing home buyers and sellers with a clear understanding of market data that may affect their opinion of value.

It is frustrating to me (and most real estate professionals) that some buyers feel that home sellers are desperate. They make lowball offers or unreasonable conditions. Most of these buyers are getting advice from television shows. Or, “How to Make a Zillion Dollars in Real Estate in 30 Days” books. No-money-down gurus or Joe at work who buys houses on the side and is making a fortune. (Why is Joe still working?)

London Ontario Home Seller’s Guide: Sell Your Home Quicker and For More

Get it now!

London Ontario Condo Seller Guide: Sell Your townhouse or apartment condo quicker and for more

learn how now!

There are many turn-offs for home buyers when selling a home in London, Ontario; here are 5.

1. ODOURS …Overwhelmingly, the #1 complaint among buyers was unpleasant odours in the home.  Chief offenders were smoke, pet odours, and exotic cooking aromas.  Most of us are unaware of our homes ‘peculiar odours because we become immune to the smells – the buyers are not resistant to these same odours.

 2. CLEANLINESS...This # 2 complaint was that the seller should have cleaned.  We’re not talking about home staging or even unrealistic expectations of spotless homes – just simple old-fashioned cleaning.  Selling your home can be inconvenient, but when you have advance notice that a buyer is coming to view it, make sure it is clean.  At a minimum, remove the dirty dishes from the sink.

3. SELLER Being at Home…Coming in at #3 is having the owners at home while the buyers are trying to view it. Most buyers felt very uncomfortable with the seller there. Many said they could not take the time to review the home’s features because they were in such a hurry to leave the seller.

 4. CLUTTER…The #4 complaint is related to the cleanliness point – the dreaded clutter.  We have all seen it on home shows: many buyers struggle to visualize your home because of all your belongings.

5.  UNFINISHED PROJECTS...Unfinished projects rank #5.  If you plan to sell your home, complete any ongoing home improvement projects before listing it.  Homes with unfinished painting, flooring, trim, and other features gave buyers the wrong overall impression.

London Home Seller’s Guide to Moneymaking Fix-Ups

All the above may seem obvious and common sense, and though I have exaggerated a few points here, after showing thousands of homes in my career, it is the little things that matter!

Each year, thousands of homeowners needlessly lose thousands of dollars when selling their homes.  But they don’t lose the money for reasons you might think. They lose money because they unknowingly left it on the table, for the buyer to pocket, by failing to recognize their home’s hidden profit potential.