Price a London Ontario House High, Accept Less?
I always hear this from home sellers: “Let us List it High Because Someone Will Offer Us Less.”

What should we list our house for in London, Ontario?

That thinking may have worked years ago, but in today’s real estate environment, homebuyers have a tremendous amount of information at their fingertips with just a few clicks of the mouse. Today’s buyers know prices, and if you list a house or condo for sale in London, Ontario, too high, it could cost you!

I Want to List My Home High Because I Know Someone Will Offer Less.

When a home seller interviews a Realtor, it’s easy to get caught up in the excitement of choosing a sales price. If a seller can get more money for the home, it means more financial opportunities for them. Unfortunately, uninformed sellers often choose the Realtor who tells them they will list it at the highest price or, worse, the lowest commission. These are the worst mistakes home sellers can make.

Establishing Value:

It doesn’t matter how much a home seller thinks their home is worth. The only people whose opinions matter are the buyer who will make an offer and, of course, the appraiser. Pricing a house is part science and part art. It involves comparing houses in similar neighbourhoods in London, making the necessary adjustments for the differences between them, charting market movements, and measuring the amount of housing inventory to help determine a range of value.

 This is the same method appraisers use to evaluate a house. No two appraisals are the same; however, they are generally close to one another. There is no hard and fast way to set a price on a home in London, Ontario, and the area.

Is the Price Too Low?

Houses sell at a price a buyer is willing to pay, and a seller is willing to take. If a house is priced too low, the seller should expect to receive multiple offers and drive the price up to the market value.  There is not much danger in pricing a home under its actual value and your competition. The danger is pricing a house or a condo too high and having the home sit on the market for weeks, even months.

How It Starts To Go Wrong

The home seller did not interview more than one Realtor. They may have picked the first Realtor off the Internet because they have a meagre commission fee or a friend or a co-worker recommended them. The first Realtor priced their house at $795,000. After 90 days of sitting on the market, the listing expired.

It Continues To Go Wrong
The following Realtor they hire lists the house for $775,000. A few weeks pass, and eventually, the price drops to $765,000, but there are still no offers. A few people look at the house, but no serious buyers come forward.

The Home Owner is Now Tired & Exhausted

The home seller and the Realtor then priced the home at $737,000, and it sold very quickly. The sad part is that the comparable sales in the neighbourhood fully justified a price of $755,000, but the home had been on the market for too long at the wrong price, and now the market had slowed.

Protect Yourself

The question is, how much money does an expired listing or an old listing cost the homeowner? The financial losses often exceed the extra mortgage payments paid and go beyond the cost or hassle of trying to keep a home spotless during the listing period. It affects the value a buyer ultimately pays because it is no longer a “fresh” listing. It’s now stale and dated, an overpriced home for too long.

Don’t let it happen to you. Don’t let it go to a stale listing.

“To sum up in two words all failures in war and life. Too late!” Douglas MacArthur

This condo London Ontario tip is to contact your corporation manager before you list it on MLS. In addition to the price and dates, contacting the condo manager could save you last-minute headaches.

99% of the time, when you and the buyer agree on the price, there will be a conditional clause that states that the buyer’s lawyer will have 7-10 days to review the status certificate provided by the condo management company.

The buyer’s lawyer is looking at the corporation’s financial status to see if there are any unpaid condo fees or assessments from you, infractions, such as a missing screen, or an unauthorized addition, such as a deck or satellite dish.

You will be surprised at the number of hasty remedies and discussions if a lawyer discovers some things you were unaware of.

To ensure a smooth sale, take the time and effort to find out if any issues could affect the final sale of your condo,  be it an apartment or a townhouse in London, Ontario.

For more condo London Ontario tips:

Condo Buyers Guide

London Ontario Condo Seller Guide

Why a Status Certificate When Buying a Condo In London, Ontario?

When people think of a condominium status certificate, they believe it concerns the amount of money in the reserve fund. A Status Certificate when buying a condo contains information regarding the condominium corporation’s operational, legal, and economic dimensions.

Read More

Ty Lacroix Broker Envelope Real Estate Group

Are you thinking about moving and wondering how to price a home to sell in London, Ontario? You have a price in mind, maybe two or three! Such as:

• Incredible

• That will work

• No way

How is the right asking price determined to get you what you want?

There are several ways to price a home to sell.

Remember that value and price vary between sellers’ and buyers’ perspectives!

• Disregard your view of your home’s worth for a moment and start considering what it is worth to a prospective buyer. Chances are, you have invested much time and money into making your house the perfect home for you. A buyer doesn’t share your memories or emotions or care about your financial situation.

• A Realtor may give you a comparative market analysis (CMA).  This tool lets you see what other similar homes have sold for in your area.  Ask why certain homes were included on the CMA while others were not. The CMA is an excellent tool for determining an asking price but is not necessarily the best.

• Consider going to open houses. Remember to look at other homes with the impartial eye of a buyer, not from the view of a current homeowner looking to sell.

• The price per square foot formula is a good way to compare apartment condos. It is unsuitable for houses as most homes have different finishes and styles.

• Is it a seller’s market? A buyer’s market?

• Do you have to sell?

• Use my 60-point valuation chart, our exclusive home audit, and a scorebook that addresses these questions and others to value your home and obtain a price that could exceed your expectations.

Want your home sold now? I can be reached at 519-435-1600.

Ty Lacroix Broker Sutton Group Preferred -Envelope Real Estate Group 519-435-1600

Why use a Realtor to buy a home from a builder? Buying a brand new home? Buying pre-construction? Who is protecting whom?

Who is protecting your interests when you buy from a builder?

The advantages of having a Realtor help you purchase a new home are the same as those for purchasing a resale home.

• Knowledge of the market

• Help find the perfect home quickly,

• Expertise in contract writing/negotiation,

• Closing assistance.

Builders have professional representatives or licensed or unlicensed salespersons watching out for their needs. Who is going to protect you and watch out for your needs?

Lawyers cannot represent both sides of a transaction for a reason!

Your interests need protection when you enter a legal contract for a semi-custom or build-to-suit home. These transactions are complex, and the contract details must be exact to protect you!

Is there any advantage to not using a Realtor to purchase a new home?

No.  There is no financial advantage to buying directly from the builder.  Most ethical builders, including many in London, Ontario, have a “single-price” policy. You pay the same price whether a realtor represents your interest or not.  Like most resales, the Seller pays the Realtor’s fee. There is no extra cost to have an experienced Realtor help you.

Legal Contracts Builders Use Are Drafted by Their Law Firm!

Who do you think the contract favours or is biased for?

Do you know what you want and are looking for when you do your pre-delivery walkthrough of your new home? If something is wrong, what can you do other than receive promises?

If a condominium, you should know:

• How many are sold now?

• Are there rental units?

• Sold to investors?

Buying a home from a builder is much more complicated and time-consuming than buying a resale. Experience working with builders and accessing a database of information about subdivisions, floor plans, etc. is a must. Familiarity with new home warranties and builders’ purchase contracts is a must.

Caution– 99% of builders insist your Realtor accompany you on your first visit to the builder’s sales office or model home. They will NOT PAY your representative’s fee!

This home buyers guide has more tips and ideas for you!

When thinking about buying a home in London, Ontario, two homes compete for your attention: the one that meets your needs and the one you want.

In one of the most outstanding financial books ever written, ‘The Richest Man in Babylon,’ George Clason writes that there are two kinds of study. The things we learned and knew and the training that taught us how to find out what we did not know.

I read this book yearly to refresh and remind myself of some simple financial basics. While very simple and maybe too easy, many Canadians do not make wise financial decisions.

Educated or Wise?

Many well-educated people buy or sell real estate without knowing what they do not know when buying a house or a condo in London, Ontario.

“A degree on a wall means you’re educated, much as shoes on your feet mean you’re walking. It’s a start, but hardly enough.” Ryan Holiday

It is like a person complaining of a sore belly goes to their doctor and tells the physician that Dr. Google says it is blah blah blah! The kind physician ( the one not rolling their eyes or thinking, “Oh no, here we go again) will ask questions, identify the cause or the remedy and treat the problem.

In real estate, the same thing happens. Wise, intelligent people listen to what their neighbour or co-worker says, read “How to save thousands when buying real estate,” or watch all those reality shows and then become experts in buying a house or a condo.

As Joe Rogan wrote: “We live in a world today where it’s never been easier to be full of shit!”

Home sellers and their real estate representatives love you because you are the one who overpays for a home (yet brags that you got a good deal or became a complainypant) or finds out that the home has structural issues or a neighbourhood stigma.

In real estate, we do not have a Dr. Google, but we have everyone who has ever bought or sold a home as an expert on how to buy or sell a home.

You may think money dictates your decisions; in some cases, you may be right. But about 85% of the time, decisions are emotional reactions to wants, not needs!

London Ontario Home Buyer Guide For More Tips

The thought of moving to a smaller home in London, Ontario, or the area, the memories, and the familiarity can be overwhelming. One day, you realize that putting things off and procrastinating may not be the best choices.

It could be too much upkeep or troublesome stairs. Sometimes, it is feeling isolated from family or old friends or being closer to the amenities you like or services that you need.

As a Realtor who has helped hundreds of clients downsize to a smaller place, be it a bungalow house, an apartment condo, or a lovely one-floor townhome, I recommend a six—to twelve-month timeframe at least to fully understand moving, research, and consider all your options!

I am so glad I moved to a smaller home in London Ontario

Downsizing And Conflicting Information

If you’ve come this far, why jeopardize all you’ve accomplished now? You have many options, choices, and decisions to make. The better informed you are, the better. This is the question I always ask myself when seeking information.

• Is it true?

• The source?

• Unbiased?

Downsizing And Conflicting Information

If you’ve come this far, why jeopardize all you’ve accomplished now? You have many options, choices, and decisions to make. The better informed you are, the better. This is the question I always ask myself when seeking information.

• Is it true?

• The source?

• Unbiased?

• Competency of the source, for example, is the advice scholarly ( teach but don’t do) or from experience?

• Is the information fear-mongering, from lack or too good to be true?

• What is the objective of the author, writer, or poster? To sell you or guide you?

For example, when I Googled “downsizing a home in London, Ontario,” I got ‘about 6,380,000 results (0.34 seconds)’! For a start, it’s wise to be familiar with your local real estate market, the area you may want to move to, and the best practices for buying or selling a home.

They are enjoying staying in touch with their children wherever they may be!

You cannot depend solely on the MLS or social sites to attract buyers and get them to see your home for sale. To get buyers to see your home, a few ideas:

Did You Know:

• 44% of the buyers who walked through a home viewed it online.

• 67%  of the buyers who walked through a home viewed it online and had a virtual tour.

• 88.6%  of the buyers who walked through a home viewed it online that had floor plans and a virtual tour

Hope is not a Strategy When Selling Your Home!

When your home is for sale on MLS, you enter one of the most competitive businesses anywhere! The primary key to effectively marketing your home is identifying potential buyers.

What do you see when you pick up any real estate magazine or flyer?

The content looks virtually identical:

• Two to six homes with a small picture of the property

• A massive picture of a Realtor and

• #1 this, #1 that, or a member of so and so club.

Or (I can see your eyes rolling now!) They say honesty, integrity, we care, etc. Well, they better care, be honest, and have all that and more; it’s your home and your money!

Does three bdrm, two baths, a beautiful home, and lovely floors wow you? A clean, good neighbourhood and close to schools put you to sleep?

Your home has a story; it is your past, and your home’s marketing must reflect your home’s feel and energy. Not necessarily the number of rooms.

Most people who can afford to buy a home can count!

When Marketing A Home In London, Ontario & Area To Sell, Some Do’s and Don’ts

Read More

To get your selling price, these 12 steps to selling a home in London, Ontario, will ensure that your home sells quicker, and you can reduce stress and have some semblance of control.

1 Keep the reason you are selling to yourself and your Realtor®.

Keep your motivation for selling to yourself and your Realtor, no one else! When asked, say that your housing needs have changed.

2 Different goals will dictate different strategies.

What is more important to you:

• The money you walk away with?

• How long does it take your home to sell?

• Or both?

3 Do your homework before setting a price.

The average buyer will look at six to ten homes at the same time they are looking at yours. That buyer will now have a basis for comparison. If your home does not compare favourably with others in the price range, buyers or realtors will not take your home seriously. A result can be that your home will sit on the market longer. Unfortunately, some buyers may think something is wrong with your home because it is still on the market.

Homework Before Choosing a Selling Price

4 The discovery.

• Find out what homes in your neighbourhood have sold for in the last 6-12 months.

• Research what current homes are listed for sale (your competition).

• The days on the market

• The percentage of the sold price to the asking price.

That is how a wise prospective buyer and their Realtor will assess the worth of your home.

5 Maximize your home’s sales potential.

Although you may not be able to change your home’s location or floor plan, you can do much to improve its appearance. The look and feel of your home generates a higher emotional response than any other factor. Before showings, pick up, straighten up, unclutter, scrub, scour, and dust. Present your home to get a “WOW” response from prospective buyers. 

Allow the buyers to imagine themselves living in your home. The decision to buy a home is based on emotion, not logic.

6 Deciding upon a Realtor

You and your Realtor are partners in marketing and selling your home; negotiation strength is paramount, and the support staff, experience, and tools to handle any situation are good to know.

There Are Six More, You Are Doing Great!

7 Make it easy for buyers to get information on your home.

Buyers who call for information on your home value their time as much as you do. They also do not want to be hassled or frustrated because they cannot reach the listing realtor or because some of the information in the listing is incorrect.

96.7% of homes sold have been previewed with a virtual tour or professional photography! Ensure your Realtor has a proven feedback system that lets you know prospective buyers’ comments and opinions.

8 Do not move before you sell or keep it furnished.

Studies have shown that it is more difficult to sell a vacant home because it looks forlorn, forgotten, and naturally unappealing. Prospects may also think that because it is empty, you are motivated to sell fast and for a lower price.

9 Deadlines create a severe disadvantage.

Don’t try to sell by a specific date. This adds unnecessary pressure and is a severe disadvantage in negotiations.

Keeping Emotions and Expectations in Check

10  Do not be offended by a low offer or individual demands from the buyer. An experienced Realtor can turn these negatives into favourable situations. You will have an advantage over others who get caught up emotionally.

Emotions will not alter the situation; it has already occurred.

11 Be an intelligent seller- disclose everything.

Be proactive. Disclosing any problems or defects gives the buyer confidence that you are not hiding anything. This will also prevent liability or legal issues.

12 Make sure the offer is complete. Ensure that all terms, conditions and responsibilities are spelled out in the offer and that you fully understand them. An excellent Realtor will take the time to explain and help you understand the conditions and terms and will insert clauses if required to protect you further

These 12 steps are a guideline, and no one can afford to waste time and money or have a process that will return to haunt them! There are 187 steps I follow, but for now, these 12 are basic yet important.

Read More at The London Ontario Home Seller’s Guide

Have you been thinking about updating your home before selling in London, Ontario, and whether it is worth it?

Some updates to your London, Ontario home make sense or should I say dollars? Are you worried about spending wisely, getting your money back, and more?

 The most important question to ask yourself is:” How long am I going to stay here?” 

If you plan to stay awhile, remodelling for your comfort and long-term enjoyment is far different from modernizing to make your home show better to sell. Some remodel projects take much longer to get a good return on your dollar.

Updating the kitchen and bathrooms or a new roof is always valuable. Excellent choices such as flooring or paint are remodelling projects that return almost 100 percent of their cost to the value of your home.

The average return within one year after the remodel varies for larger projects.  Major kitchen remodelling gives an average performance of 71 percent, a family room addition at 77 percent, a master bedroom and ensuite averages 83 percent, and windows 68 percent.

It is important to remember that you may be selling your home someday, and you need to make wise decisions if you are updating it. You may want to weigh the up-front cost of the project against its usefulness and added value to your home.

If you are considering selling or buying a home in London, Ontario, there are pros and cons to renovations and the best return for your dollar. Another huge consideration is the timing, not only yours but also lining up materials and contractors and allowing for Murphy’s Law.

Time and again, when I show homes or list them, some or all of these tips would have dramatically sped up the sale, and the seller could have received more money.
Over the years of working with hundreds of home sellers and buyers, the little things a buyer sees may be the stumbling block in making an offer on your home. You have only one chance of making an excellent first impression on home buyers!

Ty Lacroix Broker Envelope Real Estate Group

In London Ontario, pricing a home to sell far outweighs pricing your home to sit on the market and hope!

Try not to get too carried away when your home sells for the price you want and quickly!

•  A Quicker Sale: This means you save on mortgage payments, real estate taxes, insurance, and other carrying costs.

• Less Inconvenience: When your home is on the market, your lifestyle and schedule will change. Preparing your home for showings and making arrangements for children and pets are two examples. Proper pricing shortens market time.

•  Realtor Excitement: When real estate salespeople are excited about a property and its price, they are motivated! They make special efforts to contact all potential buyers and show the property whenever possible.

• Exposure To More Buyers: Pricing at market value will open your home to more qualified buyers.

• More Eyeballs On The Marketing: Buyer inquiries are converted into showing appointments.

• Reasonable Offers: Buyers may fear losing out on a great value.

Now What?

Further Drawbacks Of Not Pricing a Home Correctly!

• Fewer Showings: Realtors and buyers won’t visit the property if they feel it is too expensive.

• Helping Your Competition: Buyers will visit other properties that offer better value or that they think they do.

• Buyers Can’t See The Value: Your home will seem to have fewer amenities than other homes in the same price range.

• Outside Appraisal Challenges: Appraisers must base their value on what comparable properties have sold for.

 Drama should be in the movies, TV or the theatre stage, not when selling your home!

See more from the London Ontario Home Seller’s Guide

If interest rates drop, will London home prices increase? Most likely not, as we are currently on the edge of a balanced real estate market slightly above a buyer’s market!

I, for one, can state what the real estate market is today, but next week, next month? Motivated buyers or sellers will do what they want to do, regardless of the market.

As more homeowner mortgages come up for renewal, more homes may come on the market, and for buyers waiting for interest rates to drop, there is the market! However, more homes on the market end up being a buyer’s market, with more buyers, a seller’s market.

Fence sitting in a real estate indecision matter usually results in a proctological splinter in your finances!

A London home price increase concurrent with a monthly inflation rate of 2.5 to 3% can be expected. Of course, there will be outliers, but as usual, the sky is not falling for real estate in London, Ontario.

The tariff threats by our neighbours to the south have created uncertainty in the market. We Canadians are strong, and this may be patriotic defiance on my part, “I would rather die standing on my feet than dying on my knees!”

I refuse to join the fear-mongering rhetoric. I always see challenges or obstacles as an opportunity to improve, change, or overcome.

Amor fati!

Latin for a state of mind where one not only accepts fate but actively loves it, viewing all experiences as valuable and necessary. 

Home sellers use four pricing strategies when listing their homes in London, Ontario, on MLS. How would you negotiate if you were a home buyer if you knew which?

What price?

  Overpriced:

   Every seller wants to maximize the amount they receive. They may have an inflated home value because they got opinions from uninformed advisors and friends, have an over-financed house, or have renovated their home to a standard inconsistent with their neighbours.

  Somewhat Overpriced:

  35% of homes on the market are overpriced, and they sit on the market longer than they should. There are two main reasons for this:

• the seller and their Realtor are not intuned to the current market,

• or the seller has left room for negotiating.

  Priced Correctly at Market Value: 

   Some sellers understand that real estate is part of the supply-and-demand system. They have realistically priced their homes based on a thorough analysis of other homes on the market prepared by a competent and knowledgeable Realtor. These competitively priced homes sell within a reasonable time and are very close to the asking price.

  Priced Below the Fair Market Value:

  Some sellers are motivated by a quick sale. These homes could attract multiple offers and sell fast, at or above the asking price!

  As a buyer, do you know which strategy is in place?

What if you guessed wrong?

Check Out The London Ontario Buyers Guide