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!
