The London Ontario real estate market is balancing out. Buyers and sellers are unclear about who has the authority to set the final sale price!
When it was a seller’s market in London, buyers generally thought sellers were greedy—even when homes were priced at the market price! Ten to fifteen buyer offers later, prices increased. Do you blame the seller?
Is it a plane, a rocket, or a buyer? No, it is the Super Uninformed Buyer!
In today's market, even when a house or condo is priced at market value, some buyers are merciless in their expectations and perceptions of a home’s value. Some believe they can buy a home at 80-85-90% of the asking price and are surprised when the seller refuses. Duh!
Examples of Some Buyers’ Mentality
Recently, I had buyers and their Realtor view a $1,300,000 home I had listed for sale. One Realtor called me and said their buyer is qualified for a $1 million loan. Henceforth, they could offer $950,000 because they needed money for closing and moving costs.
The second Realtor, without even seeing the home, asked whether we would accept $1,050,000.
Really, oh and conditional on financing, a home inspection, and a 120-day close. Most likely, a few other conditions like:
The sky must be blue on move-in day.
The neighbours have no pets.
The neighbours will never ask to borrow anything.
More blah, blah, blah! And, other sheep noises!
Which Way To Turn?
Will the London Ontario Real Estate Market balance out?
Yes, just as we went from a seller’s market to a buyer’s market. There will be fewer sellers because they will wait, just like buyers waited. We will see some balance and get back to a reasonable market.
The change in interest rates and qualifying is for the good. It has tamed the market and, hopefully, prevented potential buyers from getting into situations they cannot afford. Some Realtors thought they were the Kings and Queens of real estate. Their listings sold in one day with multiple offers. Their buyers would pay any price for a home. They are now discovering that it takes skill, experience, and work to help a buyer or seller in a transaction!
That means a Realtor can’t just plop a sign on a lawn, and the house sells.
They will need to speak with other Realtors.
Learn how to talk to the seller about no offers after seven days.
Learn how to market and budget their money.
There will be less coming in.
Aaaah! The real world again!
Get the facts, not opinions!
Will This London, Ontario Real Estate Market Surge Affect You?
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