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.