Unfortunately, 83.7% of home buyers and their Realtors believe they can only address two of the three sides: price, location, or features. I strongly disagree that a motivated, patient, and knowledgeable buyer working with a Realtor who has systems in place can fulfill all three; maybe not 100% in some cases, but I would take 90% plus over 66% any day!

As a home buyer in London, Ontario, and the area, I am sure you would, too!

Price

This may sound flippant, but price is what you are qualified for. If you are qualified to buy up to $800,000, why look at properties priced at $900,000 or more? You will either discourage yourself or discredit the seller’s ego if you can get $80,000 to $100,000 off the price.

Yes, I have seen a few cases where a seller with pie-in-the-sky fantasies has dropped the price by $100,000 or more after a few months of no showings or offers.

A reasonable buyer can easily fulfill the left side of the pyramid when there is a reasonable seller!

Location

Location may be #1 on the London home buyer pyramid. Regardless of price or features, you ain’t buying. You have your reasons and comfort zone; if you are going to move, feeling good about your environment is beneficial.

Features

What are your must-haves in a home? Would it be nice? Don’t care? I have yet to find a home that checks 100% of the boxes. Think about your must-haves and if necessary, draw a line in the sand, no ifs, buts or what the heck -don’t cross the line.

Please tell me: if you took the time to understand the three sides of the London home-buyer pyramid, why would it be difficult to find that home? If you find it challenging, one of the three sides is not aligned.

More Home Buyer Ideas

Have you ever wondered what a savvy home buyer is? Or is not? I may ruffle a few feathers here, warning those who like to pooh-pooh on everything.

You Don’t Know Everything!

Wise, savvy buyers know what they don’t know. They will then expend the energy to learn or get factual, qualified advice from those who do know. Notice I did not say get an opinion? You can ask 50 people for their opinion, read 50 articles, or view 50 social media feeds; cumulatively, you will most likely get 150 opinions!

Be Real—This Market Isn’t Hard

David Greenspan wrote, “It’s hard because too many people are operating with false expectations, and not enough honest conversations are happening to fix it. Buyers are chasing homes they can’t afford, and sellers are living in the past, stuck on 2021 prices.” 

Trying To Time The Market.

Timing the real estate market to sell or buy a house or a condo is a guessing game. If anyone tells you otherwise, run.

The market doesn’t care when we want to sell or buy, which is why so many quality and well-located homes end up on the market longer, or, heaven forbid, unsold! I learned a long time ago that there are things I can control and cannot, and the market is not in your or my control. You are the market.

Not Understanding The Process

Winging it will cost you. Buying and selling real estate is a process, not an event. Yes, it can be exciting, fearful, dreadful, hopeful, exhilarating, greedy, bountiful, forgiving, and scary simultaneously. Ok, I’m exaggerating. All within 24 hours! Or two weeks, or for an extended period.

Be aware that Realtors have a mandated process for handling purchase and sale transactions, timelines, and a fiduciary duty to their clients. Your lender, lawyer, home inspector, or condo management company also has a mandated process for handling a purchase and sale.

Meet with all who may be involved BEFORE you start looking at properties. If you do that, I guarantee you will be a savvy homebuyer with a significant advantage over other buyers.

We can all experience temporary amnesia; try not to when buying a property!

Be Boring

Yes, speaking with professionals takes time and is not as much fun as driving around looking at properties. Boring is similar to the story of the turtle and the hare. The turtle’s pace is slow, tedious, and plodding; however, the price is right.

Your time and effort will be rewarded exponentially, in proportion to how long it takes you to understand the process. Spend the time now and be rewarded later. Boring, I know, it’s your choice.

When you feel the timing is right to start the buying process, you’ll likely view several homes on the market that match your criteria. Below are the usual run-of-the-mill ideas.

Bring a notepad. Take notes on the home’s characteristics and your impressions. Can you imagine yourself happily relaxing in this place or entertaining family and friends?

Bring a measuring tape. Do you know if the furniture you plan to bring fits? Exercise equipment or a couch? Will any windows, appliances, or flooring need to be replaced soon?

Check out the area. Do other homeowners take good care of their properties? This shows pride in ownership. What is the noise level? Is there a playground or another area feature nearby?

Make a list of compromises. For example, is the kitchen acceptable or a deal-breaker? Two bathrooms instead of three, and if so, can you live with that? Four bedrooms instead of three? Garage/ no garage?

Make a list of likes/dislikes. What features does the home have that are not necessary but would be desirable? For example: a dining room, a fenced backyard, sun exposure, or shade?

Remember your budget. Is the price within your range and allows some wiggle room for updates or repairs? The savvier you are when viewing properties on the market, the more likely you will be to find the right home for you.
More Prudent Buyer Tips.

Who would you want representing and protecting your interests, a transactional or transformational Realtor in London Ontario?

What is transactional? Transactional means there is an expectation that if one gives, one will receive.  In the real world, in it for the money, not you.

What does transformative mean? Causing or able to cause a significant and lasting change in someone or something. Merriam-Webster. In the real world, it's in it for you and when you are successful, you get rewarded.

Transactional

It’s like going to a doctor’s office and saying you are not feeling well. The Doctor goes to a shelf and gives you four different pill bottles and says, “Take these. These will help.” Also, drink lots of water, stand on one leg, and whistle Dixie. If you are not feeling better, make an appointment in a month or so! The Doctor made little effort to know about you, your concerns, fears, and history or to listen.

There is no difference with a Realtor who will tell you anything and show you anything to get you to buy or sell.

Transformational

The Realtor, who takes the time to understand your wants, needs, fears, goals, and concerns, will not tell you what you want to hear, but will walk you through the process and ensure he or she protects you and your family.

Who will have your best interests at heart and be there for you during the process and after you move in? You may be surprised at the questions you may have after a transaction closes. Or the names of some tradespeople.

How will you know if a transactional or transformational Realtor? Or Lawyer? Home inspector or mortgage lender? Listen to your gut. Feel it in your bones. Give yourself some credit; you can tell the difference in a heartbeat!

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

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?

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!

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