Be careful how you choose a real estate lawyer in London, Ontario, when buying a house or a condo. Please use this as a guideline; I am a Realtor, not a lawyer.

A real estate lawyer’s role in purchasing a house or condo involves more time than that in a sale. The purchaser’s lawyer does most of the heavy lifting—or should!

The purchaser’s lawyer’s role is to protect you, the buyer, throughout the transaction. To ensure that you obtain a good title to your new property.  Traditionally, the purchaser’s lawyer also represents your mortgage lender’s interests in preparing and registering the documents in accordance with your mortgage commitment. At the end of the transaction, you and the lender each receive a report from your lawyer.

When should I get a real estate lawyer?

As soon as you have an Agreement of Purchase of Sale. Your lawyer can begin preparing documents and conducting the time-sensitive searches needed.

How do you select a lawyer?

Ask your family and friends to recommend a lawyer who has given them good service.  Or, ask your Realtor for a list of reliable real estate lawyers.  At this stage, many first-time buyers make the mistake of asking how much. Unfortunately, they think the lowest price is all that matters!  Remember, this is your home, get it done right the first time and protect yourself!

You want a law firm that provides good advice.  Why would you accept poor advice to save $200.00 on a purchase of $500,000.00 or more?   Use the initial interview to assess the law firm for basic courtesy and professionalism and to probe for information:

• If I retain your firm, what exactly are the next steps?

• What is the lawyer’s experience?

• Will I meet the lawyer personally?

• When?

• Will you keep me informed as the transaction progresses?

• May I phone you occasionally for progress reports or advice?

• When will you tell me about the final closing costs?

• When do you require me to bring in the funds?

• Sign the papers?

• How soon after closing will I get my reporting letter?

LEGAL FEES, DISBURSEMENTS, “ADJUSTMENTS,” CLOSING FUNDS.

Your lawyer should quote a block fee for all professional services related to the transaction.   Expect this figure to be firm unless something unusual happens, such as a Court application.  Your lawyer should also estimate the disbursements, which are the lawyer’s expenses over and above fees. 

Disbursements include a Title Insurance premium, the cost of a title search, government registration charges, Land Transfer Tax, HST, courier charges, and other related costs.

Your lawyer can also prepare you for adjustments to the closing.  Here are two examples of “Adjustments”:

• The seller has paid municipal taxes for the entire calendar year, and your purchase closes on July 1; therefore, at closing you owe the vendor a reimbursement of one-half of the year’s taxes.

• The seller paid the condo fees a month in advance.

• Or consider the following: it is not strictly an “adjustment,” but rather an additional closing cost that may be an unpleasant surprise: you have selected a high-ratio mortgage with mortgage insurance to protect the lender; the lender deducts the insurance premium from the mortgage, reducing the available funds for closing.

If you do not require a mortgage, your lawyer will ask you to bring a certified cheque or bank draft the day before closing, covering the lawyer’s fees, disbursements, and the balance due on closing. Those funds are placed in the lawyer’s trust account.

In most transactions, the mortgage holder transfers the funds to the seller’s lawyer’s account.

What Does a Buyer’s Lawyer Do?

Your Realtor should have read and explained all the Agreement of Purchase and Sale clauses to you, including important dates and what you may be required to tend to. Your lawyer will look primarily for clarity in the conditions inserted to protect you in the Purchase and Sale Agreement.

Some purchases may be contingent on a satisfactory property inspection and mortgage financing (even if you have a pre-approved mortgage, the lender may still want to appraise the property). Your lawyer will request and examine the status certificate if it is a condominium.

Every rural purchase should be conditional upon proof of potable water and a legal septic system.  Each condition should specify the fulfillment time, whether it may be waived, the notice required if the condition is satisfied or waived, and the consequences.

Time is vital in a real estate transaction.

Be sure you or your Realtor gives your lawyer a copy of the Agreement of Purchase and Sale along with any waivers, fulfillments and amendments as soon as possible.

Your lawyer will arrange Title Insurance.   (Great link explaining title insurance from the Financial Services Commission of Ontario) Title Insurance is not a substitute for a title search, which your lawyer must perform.  Title Insurance aims to give you insurance protection for title defects that your lawyer might have missed and any other defect that a title search, such as a survey problem or a technical violation of a zoning by-law, would not typically reveal.

You pay a one-time premium on closing.    In most cases, the Title Insurance premium cost is more than offset by the expense of searches your lawyer will not have to perform because the potential problems are insured.

The most notorious disbursements, made unnecessary by Title Insurance, are the fees formerly charged by a municipality to issue a letter confirming that it has no record of a zoning or property standards violation on your property.

Your lawyer will prepare the closing documents, including the transfer (deed) and the mortgage.  In London, deeds and mortgages are created and registered electronically rather than on paper.   That means the “closing” will occur in your lawyer’s office, not the Land Registry Office.

The money and keys are exchanged between the vendor’s and purchaser’s lawyers by courier under an “escrow” agreement. Your lawyer can give you the keys only after the electronic registrations are complete. The funds are in the vendor’s lawyer's hands—usually by the mid-afternoon closing date.

WHAT IS A SURVEY, AND DO I NEED ONE? WHO PAYS FOR IT?

In a real estate purchase, the only “survey” that counts is one signed and sealed by an Ontario Land Surveyor. This shows the boundaries of your property, along with the locations of buildings, fences, and other physical features.   If you have retained the surveyor and paid his professional fee, you have a claim against the surveyor for any inaccuracy.  An engineer’s sketch is not a survey nor a copy of the subdivision plan.

For most new construction, relatively new resale houses, and properties created by severing an existing building, a survey document is likely available and may provide helpful information if you need additional legal protection.

Many people will tell you that a survey is unnecessary because of Title Insurance.  This is partly true—if you have Title Insurance, your mortgage lender will not require a survey. But remember that you have a greater personal and legal interest in the property than your lender does.  Knowing exactly where the foundation and fences are related to the lot lines before buying the house may benefit you, not after trouble arises.

Your best protection is a new survey prepared for you by an Ontario Land Surveyor who reports to you and to whom you pay a professional fee. The lesser and cheaper protection is for the seller to give you whatever survey they have, “updated” by an affidavit prepared by your lawyer. The seller declares that the property has not changed since the survey date.  You may find this sufficient to convey helpful information, though you may have no recourse if it is inaccurate.   You may decide not to survey if you have title insurance.

Whether you choose to incur the expense of a new survey is your decision.

Insurance.

“Insurance” will come in many forms upon your purchase.  Your lender will require you to obtain fire and other perils insurance for the property and provide proof before closing.   Ask your Insurance Broker for a “Binder Letter”. The policy should list you as the owner and your mortgage lender as the first mortgagee. 

If you have a high-ratio mortgage, Mortgage Insurance (CMHC) will protect your lender against default, and you will pay a significant premium, typically deducted from your mortgage.

Mortgage Life Insurance has obvious benefits – it may be a great relief to you or your dependents if your mortgage is repaid upon your death or that of a co-mortgagee.   However, it would help to compare the premium rates your insurance broker charges for ordinary term insurance before deciding whether to accept the mortgage lender’s group insurance plan.

Definitions

Adjustments. Your purchase price is “subject to the usual adjustments,” which you should review with your Realtor and lawyer to avoid surprises. 

Agreement of Purchase and Sale. This is the Offer to Purchase document for your transaction, prepared by your Realto. Once signed by both parties, it becomes a contract that binds both of you.

Disbursements.  These are transaction expenses in addition to legal fees. They may include:

• Title Insurance premium.

• the cost of a title search,

• government charges to register documents,

• Land Transfer Tax,

• HST if applicable

• Whatever the lawyer wants to charge ( I had to add that, I’ve seen it in a few cases).   

Closing Date.   The date stipulated in the Purchase and Sale Agreement for the purchase to be completed. Your money is exchanged for the possession (keys), and the documents are registered.   Remember that the closing may occur at any time during that day. Discuss this with your lawyer to know when to expect the keys.

Note:

Get legal advice from a lawyer. Get real estate advice from a Realtor!

Over the years, I have worked with more than 100 lawyers in London. When my clients request a referral, I typically provide 2-3 names to choose from. I am prompt, on time, dot the i’s and cross the t’s. I expect the law firm to do so.

Buying or selling a home can be stressful, especially when you’re unsure how efficient or thorough your lawyer is. After a successful offer acceptance, we forward and submit the paperwork to your lawyer at no extra charge. We follow up to ensure the lawyer and their staff are aware of essential dates and conditions. We also pay for a condominium status certificate to expedite the transaction and forward it to your lawyer.

I have always said purchasing or selling is easy; the detailed follow-up separates a top-notch Realtor from the masses!

In any real estate transaction, there is a chain of events and people involved. Expect a few challenges.

Before buying a home in London, Ontario, there are five critical numbers you need to know—and absolutely the definitive sixth! The market has decisively shifted, moving from a frantic seller’s environment to a more balanced, buyer-friendly landscape. Your successful offer relies on using the current market data to negotiate with the authority and posture.

1. Active Listings vs. Market Inventory: The 6.0 Month Advantage

First, look at the area’s active (for sale) listings. But more importantly, recognize the overall market shift. Recent LSTAR data show we have 6.0 months of inventory. This indicates that supply is high and competition among buyers is low. Is the home you’re considering priced within reason compared to others? If a seller is chasing an old peak price, they will be unsuccessful in this high-inventory market. Use the abundance of listings as leverage.

2. The Sale-to-List Price Ratio: The 97.0% Negotiation Zone

Compare the average selling price to the listing price. Historically, London homes have sold near or above the asking price. The average sale price of $622,805 reflects a much softer market, with homes selling for approximately 97.0% of the asking price. This statistic is your mandate: it confirms that a 3% negotiation is the norm. The best way to upset a home seller is still to start with an unreasonable, deep-discount offer, but you can confidently target a fair reduction based on solid data.

3. The Condition and Comparison Ratio

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 condition? Is it bigger, smaller, a better style, better landscaping, etc.? These factors, especially in a market with high inventory, will help you determine how much to offer relative to what others paid for similar homes. Poor condition now warrants a much deeper price cut than it would have a year ago.

4. The Average Days on Market (DOM): The 29-Day Threshold

Now, look at the average days on the market (DOM). London’s median DOM is currently around 29 days. Priced right, just-listed homes still sell relatively quickly. However, a property that sits for 45 to 60 days or longer indicates a critical flaw—usually overpricing—thereby allowing a much wider negotiating range. If a home has been on the market for over a month, the seller will likely be much more open to a low, conditional offer.

5. The Assessed Value vs. Market Price Percentage

What is the percentage difference between the municipal assessed value and the current market price? This highly technical number provides a safety net, preventing emotional overpayment. (I have an excellent formula for this and have found it right on the money over the years!) Knowing the correct numbers for buying a home in London, Ontario, will make your life much easier and your offer successful.

You are now ready to make an offer. The strategy here is imperative: keep emotion and fear of missing out (FOMO) out of the equation.

I said there were six numbers; here is #6, the one that makes the difference between an average deal and a great deal: 519-435-1600! I couldn’t resist!

Call me today to utilize this latest market data and my expertise to secure your new London home.

For the past year, this 25-Question Checklist has been the secret weapon for smart home buyers in London, Ontario. But I’m upgrading it because, after years of working in this market—and countless conversations with sellers who share what they wish they’d known before they bought—I know one thing for sure: Uncertainty is the most expensive thing you can bring to a real estate transaction.

The stress, the doubts, the fear of making a costly mistake… I hear about them every single day.

I’m Ty Lacroix, and I’ve compiled the absolute, non-negotiable list of 25 insider questions every prospective London homeowner needs answered. This isn’t just a list; it’s a comprehensive roadmap based on experience, designed to eliminate stress, prevent five of the most expensive mistakes, and save you thousands of dollars.

When you finish this checklist, you won’t just feel confident; you will be the most prepared buyer in the market.

Here’s a preview of the essential answers you’ll find in this guide:

Your Ultimate 25-Point London Home Buying Blueprint

The Financial & Loan Secrets You Need:

1. What five critical numbers should you know before ever making an offer?

2. What four essential questions should you ask your mortgage lender before you sign any of their documents?

3. What is the quick-fire way to determine how much house you can truly afford?

4. Want to know why you should never buy a car right before you buy a house?

5. What are a few inside secrets of how to get a “Yes” when you borrow?

6. How do credit reports and scoring affect how much house you can buy, and what’s the optimal score?

7. What should you know about interest rates, points, and the “mysterious” APR that lenders use?

8. What seven money-saving secrets can you use when buying that your bank won’t tell you?

The Expert Strategy & Negotiation Edge:

9. I’m the one buying a home. Who else is involved, and how can I control the process?

10. What are the eight crucial steps to follow when buying a home, and which two steps are non-negotiable?

11. How to avoid 5 of the most expensive mistakes homebuyers make (and how much they truly cost)?

12. What four comfortable, quick tips could save you thousands if you follow them exactly?

13. How do sellers price their homes, and more importantly, how much should I offer?

14. Want to know how to avoid being beaten out by other buyers who may be competing for your dream home?

The Home Search & Inspection Checklist:

15. Get the home YOU want! Just what is it that you want, and how do you stick to it?

16. What are the top six things you may want to take a closer look at when looking at homes—beyond the kitchen counter?

17. What five questions should you ask your Realtor at every single home you visit?

18. What are the six signs that could mean expensive (hidden) problems are lurking in the foundation or roof?

19. What are the six things most home builders hope you NEVER hear about their new construction?

20. How can I remember each home when I’ve seen so many, and what is the best note-taking system?

21. How would you feel if you knew more about the neighbourhood and demographics than the person selling the home?

The Stress-Free Closing & Moving Plan:

22. What three things worry you most about buying a home, and what is the solution to each?

23. What are four great ways to beat the stress of buying a home during the most critical phases?

24. What is the best no-fail guide to finding a mover that won’t take you to the cleaners (and hold your belongings hostage)?

25. Planning your move: What are the immediate to-dos now that you’ve bought your dream home?

Here’s a Sales Pitch!

When you buy your home in London, Ontario, you deserve to look back and know you got the best deal, avoided all the headaches, and made an informed decision. That’s the confidence this 25-point blueprint gives you.

By seeking answers to these crucial questions, you’re not just buying a house—you’re making a smart, informed investment and proving that I might know what I am talking about!

Start with Question 1 and take control of your London home-buying journey today.

What would your buying experience be if you had answers to those 25 questions?

What is stalling London, Ontario home sales, and how can you take advantage of this market, whether you are a buyer or a seller?

BMO Capital Markets has been transparent about what is holding back the real estate market: the spread between what sellers want and what buyers are willing to pay.

At the bottom of this blog, I will articulate the best I can how this will affect you if:

• You don’t care what the market does.

• You are thinking of selling.

• You are thinking of buying.

• You are thinking of buying and selling.

• Your home is for sale now.

Robert Kavcic, senior economist, describes it as a “wide bid-ask spread” that has prevented the market from clearing, leaving listings to languish. The only durable remedy is to close that gap.

There are three theoretical ways to achieve it.

• The first is forced selling, which would require a deep recession, rising defaults, and job losses, a scenario neither imminent nor desirable.

• The second is a substantial drop in mortgage rates to the low three-percent range, requiring a roughly 100-basis-point cut from current levels. That path is considered improbable in the near term.

• The third is price reductions. BMO regards this as the most realistic outcome. RBC reaches a similar conclusion, noting that moderating prices in several regions have delivered the most remarkable affordability improvement in three years, encouraging more buyers to act.

 Price Movements Are The True Lever Of Affordability

In the current interest rate environment, the arithmetic of affordability favours price declines over marginal rate cuts. Consider a $700,000 home with 20 per cent down, a 25-year amortization, and a five per cent mortgage rate. A five per cent drop in price reduces monthly payments by approximately $165. By comparison, a 25-basis-point rate cut on the same home saves about $58 per month.

The implication is straightforward: in the near term, further price moderation will have a greater impact on unlocking demand than incremental moves by the Bank of Canada.

Daniel Foch wrote: “September’s influx of new listings will test the market’s resolve. CREA (Canadian Real Estate Association) highlights this as a pivotal moment, when the balance between buyer demand and seller supply could either sustain recent gains or compel further price concessions.”

He further wrote: “The outcome matters because the recent lift in sales reflects opportunity rather than exuberance. With mortgage rates still high, price adjustments have been, and will remain, the most powerful lever for unlocking demand. In many major markets, values have eased just enough to restore some affordability, drawing sidelined buyers back into the market. “

How This Will Affect You

You Don’t Care What The London Ontario  Real Estate Market Does!

The real estate market affects everyone, from tenants and landlords to developers, as well as the commercial and industrial workforce, and affordability. Even if you have no intention of buying or selling, your wealth or poverty status is irrelevant. You don’t have to guess what drives interest rates, population growth or decline or demographics.

Reality is neutral.

You Are Thinking Of Selling.

You have two choices: price to sell or price to sit.

Thinking Of Buying.

The smartest move in a London, Ontario Buyer’s market is to buy now! 

You Are Thinking Of Buying And Selling.

What you can buy for and sell for is the spread, a few synonyms: unfurl, broaden, expand, proliferation, advance and reach your net worth!

Your Home Is For Sale Now.

Your pricing strategy will make or break your results. And no matter the market—sellers, buyers, or balanced—every seller has just three choices:

1. Price At the Market

2. Price Behind the Market

3. Price Ahead of the Market

What are the consequences?

Wondering What To Do?

Sell, buy, stay, sit, guess?

Allow me to help you understand the London Ontario real estate market

The smartest move in a London, Ontario Buyer’s market is to buy now! When the real estate market tips in favour of buyers, opportunity is everywhere. More choice. More negotiating power. Less competition. Yet oddly enough, instead of seizing the moment, many would-be buyers do… nothing.

They’re not buying homes. They’re buying into negative headlines and half-baked advice.

Think about it:

• In a seller’s market, buyers were tripping over themselves to bid on homes—sometimes paying well above asking—because they feared missing out. The advantage was firmly with the seller, yet buyers dove in headfirst.

• In today’s buyer’s market, the tables have turned. Prices are softer. Conditions are negotiable. It’s easier to get exactly what you want. But now? Buyers are hesitating, worried they’ll “pay too much” if prices slip further.

It’s the ultimate market irony: when fear should have been high, buyers felt fearless. Now that fear should be low, buyers freeze.

Here’s the truth—you’ll only know the exact bottom of the market once it’s already passed. The same goes for the top. Wait too long, and you’ll miss the sweet spot entirely.

In my experience, the smartest buyers in London, Ontario, right now are not reckless or greedy. They understand the market. They’re strategic. They see the bigger picture and act while the advantage is theirs.

Capable Buyers

Capable buyers are often paralyzed by the sheer volume of information, much of which is incorrect, the numerous choices available, and the numerous opinions. This leads to confusion and prolonged waiting, as they fear making a mistake.

Too many capable buyers get stuck in “analysis paralysis”—drowning in conflicting media stories, well-meaning but unqualified family advice, and outdated assumptions. The result? They wait. And wait. And wait… until the market shifts again, and opportunity is gone.

Market expectations are often more emotional than factual. If you want to make a confident, well-timed move, talk to someone who’s on the front lines every single day, not just speculating from the sidelines.

Bottom line:

This is a fantastic time to buy in London and the area—if you have the right information. As an experienced local Realtor, I’ll make sure you have the facts, the strategy, and the advantage.

Want The Truth?

Smart London Ontario home buyers know how to make an offer that wins, without low-balling!

When you’re buying a home in London, Ontario, it’s tempting to start with a “throwaway” offer—something low, to see what happens.

But here’s the risk:

• Sellers can dismiss your offer outright.

• A skilled seller’s agent can expose your lack of preparation (and make you look unserious).

• You lose credibility with the other side.

• And sometimes, you lose the house you actually wanted.

Strong offers aren’t always about price—they’re about strategy. That means:

• Using data to justify your number.

• Structuring terms that appeal to the seller.

• Having a Realtor who knows how to negotiate without burning bridges.

“Most deals don’t fall apart because of buyers or sellers—they fall apart because of Realtors who don’t know how to negotiate. Here’s how low-ball offers actually reveal who’s skilled, who’s guessing, and how to protect your price.”

Every offer is filtered through two people:

• The buyer’s agent (who frames the property’s value).

• The seller’s agent (who protects it).

If one of them lacks skill—or lets ego drive the conversation—the deal can collapse.

A firm strategic offer or a low-ball offer, what is your Realtor advocating?

Five Realtor Archetypes That Sabotage Deals

1. The Ghost – Disappears or gives vague responses.

2. The Bulldog – Pushes hard but forgets that the goal is an agreement.

3. The Rookie – Nervous, inconsistent, overly script-driven.

4. The Bluffer – Creates false urgency or twists facts.

5. The Performer – Loves drama more than results.

After helping hundreds of home buyers and sellers in London, Ontario, I’ve learned this: the right Realtor isn’t transactional, they are transformational, they’re your shield, strategist, and negotiator.

Smart London homebuyers understand the difference between price and value and do not confuse the two.

Ready To Start Looking? Let’s put a strategy in place!

See how we can help

Will a real estate spreadsheet help you decide on buying a home in London Ontario? In my many years as a Realtor, I hear “I’ll add it to my spreadsheet and get back to you.”

Or, “I’ll do a spreadsheet and see if the numbers work”.

Does a spreadsheet have:

• Rationality?

• Reasonability?

• Common sense?

• Optimism?

• Patience?

• Happy or being right?

• Uncertainty, doubt, regret?

• Analysis by paralysis?

Does a real estate spreadsheet rationalize a private backyard, a particular view, a unique layout or room sizes?

Your commute to work or work from home space? Schools? Walkability? Demographics?

When I worked with investors, most of them ran spreadsheets. The most successful investors used a spreadsheet with a twenty-year time frame and removed emotion from the equation.

Those wise investors also considered future changes, such as new construction, altered traffic flows, or government interference that could affect their ability to achieve a decent return on their investment.

Morgan Housel wrote,” Financial decisions are not made in spreadsheets or textbooks.”

A real estate spreadsheet for a home buyer helps calculate utilities, taxes, and mortgage payments, but that is it.

A home may not be the wisest investment you will ever make, but a home is you, your family, your retreat, your safety zone, your comfort zone.

How can you put a price on that? Yes, prudence in theory may be bantered about, but home ownership is more powerful!

Would you like to better understand the London, Ontario real estate market and avoid being swayed by uninformed opinions?

First, a few common ways:

• Scroll through Realtor.ca or a real estate website to view the prices of available properties.

• Go to Open Houses

• What the economists say or predict.

• Your local newscast or newspaper

• The National Average, or what the GTA or Vancouver market is doing.

• Your parents

• Your children

• Your relatives, co-workers, pickle-ball friends, golf buddies, church members, neighbours.

• Your local bank representative, mortgage broker, Realtor, financial advisor, lawyer, doctor or nurse, your shrink, hairdresser, barber, plumber, electrician.

• The doom-sayers.

• Or, anyone who you think has their sh*t together.

What we do for our clients, and we highly recommend that all buyers and sellers do.

A Market Education

 Visit the market and view 3-4 properties that are similar to what you are looking for, or to your current home.

Not to make an offer or buy on any of those 4, but to learn realistically about the market.  Then, when you are ready to buy or sell, you will know what to expect and be able to clarify your wants and needs more effectively.

When we offer market education.

• There is no obligation on your part, no signing anything, just an old-fashioned face-to-face meeting that, again, past clients said, helped them.

• Look at a few homes and keep your chequebook at home!!!!! 

• No signing anything

• No blah blah blah stuff, such as, “we’re #1, we sell gazillions of homes.

• No, I am not a miracle worker who can find your dream home for ½ the price

• No begging,” buy from me, I’m starving, my Mercedes payment is overdue, I’m honest, I’m a friend, a neighbour, a relative, yadda, yadda, yadda?

• No coffee, tea or lunch (you are not bringing your chequebook, I am not either!)

In summary, this involves a commitment of time and energy from both the Realtor and the buyer and seller.

Does this market education work? Below are what two of our clients wrote:

 “Ty, your market education system is wonderful!” Marilyn Cuthbert 

” Ty, you made our decision so much easier with your market education, thank you,” Philip Rosenburg

Would you like to book a personal London Ontario real estate market understanding?

No, not all homes in London are overpriced! Yes, we are now in a buyer’s market, but that does not mean every seller will reduce their price.

There is no question that some sellers have overpriced their homes, but it is essential not to compare these overpriced homes with those that are priced well.

Here, then, is the crux of this market.

Most buyers and their Realtor are making low offers, regardless of the comparables and the value of an individual home.

The ‘throwing out the baby with the bath water’ mentality is distorting the market. I contend that this mentality harms buyers by leading them to forgo fundamental value in favour of perceived value.

If I may, here is a classic example that not all homes are overpriced.

A townhouse condo is listed for sale at $650,000, and it is the only one available. Five months earlier, one sold for $565,000. Realtors and their clients will consider the $650,000 unit overpriced. I dug further, and here is what I discovered:

• The seller was underwater. (Meaning, they were in financial difficulty and had to sell quickly or lose the property to the mortgage holder)

• Nine photos, no video or floor plans.

• No status certificate is available; it is the buyer's responsibility to order one.

• Initially listed for sale at $639,000, no offers. The listing was cancelled, reduced, and expired three times before ultimately selling.

• Everything in the unit was original from the builder, no upgrades.

• The listing Realtor was from the GTA area, and the only way for local Realtors or consumers to arrange a showing was by calling the brokerage’s switchboard, usually an answering service, then waiting hours for a call back, if ever, and by email, two to three days later!

• The unity was dusty and had a stale, musty odour because it was vacant.

• The rugs were slightly soiled, and the walls required paint.

The $650,000 unit?

• Upgraded throughout with high-quality flooring, lighting, window coverings, and appliances, and decorated.

• One more bathroom

• The backyard view was of a green space, not a six-foot wall.

Now, Are All Homes in London Overpriced?

What do you think happens when a Realtor and their client see the $650,000 place? They appreciate it but consider it overpriced because a unit sold five months earlier for $565,000.

Even though others that sold in 2024 in that enclave were in the $619,000 to $640,000 range!

In one instance, an offer of $575,000 for the $650,000 unit was refused because it was perceived as insulting not only the seller but also his Realtor. A counteroffer was declined; the verbal offer was $589,000.

Two weeks later, that buyer purchased a unit in another area of town for $595,000. The unit was older and of lesser quality than the $650,000 unit, and the condo fees were $285.00 higher.

Hmmmm! Who was the winner here?

Want more examples? I see houses and condos that are a great value sitting on the market waiting for the right buyer with foresight! Those sellers are not desperate or in need of selling, so why play a game you are going to lose as soon as you start?

Don’t get me wrong here, this is an excellent opportunity for buyers to take advantage of the softening real estate market. The homes that are priced appropriately, their Realtor, and the owners are realists and have priced their property accordingly.

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

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!

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!