Your emotions when buying a London Ontario home and controlling them will determine the price you pay and the home. 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, perhaps the seller isn’t motivated enough to sell. Or, the seller may be very 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 the home, 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?
Other than my phone number, it includes comparable sales and market data for the entire market and the area, as well as the 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, look at the average selling price compared to the listing price. You may notice that most houses in London sell for the asking price or a bit more than the asking price. If that’s the case, you know the original offers were less than this amount. Take this into consideration when making your offer.
Now, make sure you 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, smaller, a better style, landscaping, etc.? These factors will help you determine how much you should pay for your home vs. how much 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 or do not get the home they want because of poor negotiating, or upset everyone, or lose lots of sleep!
