New Rules For Buying a Property in London Ontario With Tenants

If you have a client who is interested in buying a property, but it has a tenant, make sure to extend the closing date because the required notice days in Ontario have now doubled in length. In the past, only 30 days written notice was required to terminate a tenancy. Now it’s 60.

Landlord in London Onatrio

Another glitch: the date the tenancy ends must coincide with the end of term or rent period. This could result in a full year passing before your client can move in.

For example, if the tenant’s lease ends Dec. 1, 2018, your buyer can’t move until Dec. 1, 2018 even if the closing date is Nov. 1, 2017. And if you’re thinking of “fudging the dates” by giving less notice than is required, don’t! If the termination date is so much as a day off, the notice is invalid, and you’ll have to start all over again.

Previously, landlords have not been required to compensate the tenant if the landlord gave proper notice and acted in good faith. That’s no longer so. Section 48.1 of the RTA requires that the landlord compensate the tenant equal to one month’s rent. This amount has to be paid prior to the termination date specified on the N12 notice. This means a tenant can take the money and still refuse to leave!

Some real estate salespeople have encouraged investor buyers to buy a place and evict a tenant under the pretense that the buyer, or her family member, is moving in. Under the new rules, if the buyer gets caught, she can be fined up to $25,000. This fine can also be levied if the buyer decides to move out before 12 months are up following the date of eviction, rent it to her cousin and charge rent or demolish the place.

Given these rules, it’s important that you get a copy of the tenant’s lease. This way, you can gauge when your buyer can move in and how much she’ll have to pay the tenant to move out.  It’s also important that you always use the updated forms found on the Landlord and Tenant Board’s website, because the previous forms are no longer valid.

To avoid extortion by the tenant – a practice whereby tenants demand money in order to move – make sure that your buyer, once she becomes the landlord, files an L2 application and obtains an order terminating the tenancy pursuant to the notice prior to the termination date. Ensure that the order references the payment so that it is documented that you will be providing the tenant with proper compensation. Getting an order in place speeds up the process if the tenant refuses to move following the notice date and prevents the tenant from extorting the landlord by demanding more and more money in order to move out.

While affordability is an issue and the housing reforms attempted to solve this matter, the reforms have disproportionately hurt landlords and those who are scrimping and saving to buy a home. As such, buyer agents, as well as seller agents, must be aware of these financial and practical changes. They can destroy a deal.

The above was written by   Natalka Falcomer  a lawyer in the GTA area

 Another interesting tip about investing in London Ontario

What Price To Sell a House In London Ontario if Downsizing?

                    What to be Careful of When Setting Your Selling Price

Meeting with a REALTOR

Meeting a Realtor

You have decided to sell your home and have a fairly good idea of what you think it is worth. Being a sensible home seller, you schedule appointments with three local real estate representatives, (or a friend of a friend who has a friend). They set up a time with you and maybe arrive with a “Competitive Market Analysis” (which no longer is an accurate tool, I’ll cover that in another report) and they each recommend a specific sales price.

Amazingly, two of the Realtors have suggested prices that are lower than what you expected. Even though they have backed up their recommendations with recent sales data of similar homes, you remain convinced your property is worth more.

When you interview the third Realtor’s figures, his or her numbers are much more in line with what you think your home is worth. Or they may have even suggested to you a higher price. Wow! Now you are happy and an exited home seller, perhaps already counting the money.

   A Sales Practice Called “Buying a Listing”

If you are like most people, you have chosen Realtor number three. This is a Realtor who seems willing to listen to your input and work with you. This is a Realtor that cares about putting the most money in your pocket. This is a Realtor that is willing to start out at your price and if you need to drop the price later, you can do that easily, right?

 After all, everyone else does it! Wrong!

The truth is that you may have just met a Realtor engaging in a questionable sales practice called “buying a listing.” He/she “bought” the listing by suggesting you might be able to get a higher sales price than the other realtors recommended. Most likely, he or she is quite doubtful that your home will actually sell at that price. The intention from the beginning is to eventually talk you into lowering the price.

  Why do some “buy” listings this way?

There are basically two reasons: A well-meaning and hardworking Realtor can feel pressure from a homeowner who has an inflated perception of their home’s value. On the other hand, there are some who engage in this practice routinely.

Overpricing a property in London Ontario

If you start out with a price that is too high, there is likelihood you interviewed other Realtors. They did not get the listing, of course. They got “beaten” out by someone telling you what you wanted to hear.

If your listing Realtor routinely engages in “buying “listings, he/she has probably has done this to other Realtors in the same way. Word gets around that their homes are overpriced and the home seller has an inflated value in mind. This can be very difficult to resolve.

In short, you may have ended up with a Realtor who was good at selling you, but not good at selling your home. And you are willing to pay them a fee for it?

wasting your time

It is human nature for you to want the highest price for your home. However, when you choose the Realtor who promises what you want to hear, it often leads to stress and frustration. Most of the time, it will take you longer to sell your home. Possibly, and this happens, you will end up selling at a lower price instead.

Or maybe as a result of reading this, you will choose one of the “good” Realtors in the first place. They are out there, you know!

What Happens Behind the Scenes?

If you start out with too high a price on your home, you may have added to your stress level—and selling a home is stressful enough! There will be a lot of “behind the scenes” action taking place that you don’t know about. Contrary to popular opinion, a professional listing Realtor does not usually attempt to sell your home directly to a homebuyer. That would be inefficient.

Pro’s market and promote your home to hundreds of other local Realtors and even Realtors from the GTA areas who do work with homebuyers, dramatically increasing your personal sales force. During the first couple of weeks your home should be a flurry of activity with buyer’s agents coming to preview your home so they can sell it to their clients. (See my report “When is the most important time for a new listing)

   If The Price Is Right

If you and your Realtor have overpriced, fewer Realtors will preview your home. After all, they are Realtors, and it should be their job to know local market conditions and home values. If your property is dramatically above market, why waste time? Their time is better spent previewing homes that are priced realistically.

  Dropping Your Price Too Lat

  If you start out with a high sales price, then drop it later—your property is “old news”. You will never be able to recapture that flurry of initial activity you would have had with a realistic price. Your property could take longer to sell.

Price reduced

 

Even if you do successfully sell at above market price to an uninformed buyer, your buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable sales for the last six months and current market conditions do not support your sales price, the property won’t appraise. Your deal falls apart. Of course, you can always attempt to negotiate the price, but only if the buyer is willing to listen.

Your property then goes “back on the market”. Other Realtors will know this, as will their buyers, what do you think their response will be to your home?

Once your home sits on the market awhile, it is harder to get a good offer. Potential buyers will think that you might be getting desperate, so they will make low offers. By overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally received.

 In summary, when you decide to sell your property, why not work with someone who knows the market and is financially and emotionally strong enough to guide you? Who will not tell you what you want to hear. The truth hurts but you might as well hear it now than 3 months later! To get results, let’s discuss your options and let you start packing!

Finding a Home To Buy In London Ontario Should Not Be a Puzzle

  Finding a Home in London Ontario Should Not Be A Puzzle!

If I brought you in a room and in a pile on a table in that room was a 1200 piece jigsaw puzzle with no picture of the completed puzzle on the box and then asked you to put it together, where would you start?

Thinking about buying a house in Uplands

I am sure eventually you would be able to put it together over lots of time and lots of trial and error and some frustration! But why go through the hassle if all you needed was the picture?

Well, buying a house or condo in London Ontario is no different!

If you had a picture in your mind of exactly what you wanted and needed in a house, do you not think that the buying process would be easier and in the long run, save you money?

Here is a scenario that is frequently a request that we receive:

   “We are looking for a house in __________________________ 3-4 bedrooms, 2 bathrooms, garage and between $____, 000 and $___, 000.”

  “We would like a master ensuite, fenced back yard etc.”

      A puzzle to Buy a Home                          

                                  

Yes, you may have decided on a one floor home versus a two story, maybe even a neighbourhood or close to a particular school or your work.

Over the years what our clients have really appreciated is what we call a market education.

We sit down with our clients and take the time to narrow down your must have’s, your lifestyle preferences, your budget, your comfort zone and after that we are getting close to having a picture of your needs.

We then go look at 4-5 homes with the intent of not buying any of them! We are solely getting a clearer picture of what you would really like and can afford in a home. After this 2-3 hour tour and analysis, we have found that  90% of the time, our buyers have a clear picture and now can act on the home that matches their picture!

Our clients know comparative prices; know the right neighbourhood, the right style of home and the necessary amenities that match their lifestyle.

I will agree that this process may not be for everyone but over the years it sure works for our clients and their level of satisfaction is very pleasing to us and a barometer of our values and work ethic!

In 90% of cases, a real estate sales person’s role is not to be a home finder. That was what real estate people did in the 80’s & 90’s, consumers  did not have access to  the vast amount of information that is available today.

Home Buyers in London

A good real estate person’s advantage and skill is to be an interpreter of data, a consultant, an advisor, a professional negotiator who ensures that not only is the price right, but the terms and conditions of a complex transaction are well managed from start to finish.

These Steps Will Help Your London Ontario House Sell Quicker

Even though houses in London Ontario are selling quite well,  41% of homes listed in the London area take over 60 days to sell or not sell at all!

Why is this?

Below are a few steps that you may want to consider BEFORE putting your London Ontario house up for sale and after it is for sale.

Home not selling

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

Do not reveal your motivation for selling to anyone else because they may use it against you at the negotiating table. When asked, just say that your housing needs have changed.

Different goals will dictate different strategies.

What is more important to you: the money you walk away with or the length of time your property is on the market or both?

3 Do your homework before setting a price.

The average buyer will look at 15-20 homes at the same time they are looking at yours. That buyer will now have a basis of comparison, and if your home does not compare favorably with others in the price range, your home may sit on the market for a longer time.

More Homework.

 (A good Realtor should do this for you) Find out what homes in your neighbourhood have sold for in the last 6-12 months, and research what current homes are listed for. That is how a prospective buyers and their Realtor will assess the worth of your home.

Maximize your home’s sales potential.

You may not be able to change your home’s location or floor plan, but you can do a lot to improve its appearance. The look and feel of your home generates a greater emotional response than any other factor.

101 Ways To Sell Your House in London Ontario

Deciding upon a Realtor

You and your Realtor are partners in marketing your home. Choose carefully and wisely.

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

Buyers calling 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 get a hold of the listing Realtor or some of the information is incorrect.

Deadlines create a serious disadvantage.

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

Keep emotions in check.

Do not be offended by a low offer or certain demands from the buyer. A good listing Realtor can turn these negatives into a positive situation.

10 Be a smart seller- disclose everything.

Be proactive, by disclosing any problems or defects you are giving the buyer confidence that you are not hiding anything..

All the above steps , though simple and easy to do, are not often done, perhaps because they are so simple and easy to do.

From experience, my clients have commented that thoroughness in getting their house sold and the systems we use were outstanding! (Their words, not mine!)

 Would you like to discuss how to maximize the price of your home?

Retiring, Downsizing in London Ontario Or Going Crazy?

How the wealthy are redefining their retirement and the concept of a “traditional” retirement is a relatively recent phenomenon.

When retirement schemes were first introduced at the end of the 19th century, retirees were lucky to live just a few more years after stopping work. But increased life expectancy means that today’s retirees are often enjoying 20 to 30 years of leisure at the end of their working lives.

london ontario retirees

In Barclays Wealth Insights and their wonderful insightful presentation The Age Illusion How the Wealthy are Redefining Their Retirement” you will find it quite useful not only for yourself personally but potential as a service provider to these people who are sometimes called “Nevertirees

Assessing the impact of the Nevertiree and understanding the role that I ,as a Realtor and a Nevertiree, is exciting and something I can relate to. (The Nevertiree part, not the wealthy part!)

active retirees

I have many clients who have started second or third careers, or are still growing their business and really enjoying life.

Their real estate needs are quite different than our traditional retiree and the last two years, especially the last 6 months in London Ontario, real estate has  been in demand, especially a one floor home, be it a house or a condo, have been sought after in the $500,000 plus range.

I would say that the majority of my clients are in that high end range which I truly appreciate, not the dollar amount but their vibrancy, maturity, no nonsense approach and who appreciate a professional to help them!

London Ontario Real Estate Numbers For October 2017

The London and St. Thomas Association of REALTORS® (LSTAR) announced 757 homes exchanged hands last month, slightly down 10.2% from the same time a year ago. Year-to-date sales are up 10.6%, with a total of 10,111 homes sold, marking the second consecutive year residential sales have surpassed 10,000 across the region.

Real Estate Numbers London Ontario

The CREA Residential Market Activity Report provides more data, featuring an in-depth look at home sales trends happening across London and St. Thomas. Here it is.

In October, the average sales price across London and St. Thomas was $325,331 up 14.2% from the same time a year ago. The average year-to-date sales price was $330,497 up 18.3% from October 2016.

In London East, home sales are up 21.2% compared to a year ago, while in London South, sales are up 13.9% and in London North, sales are up 6.5% compared to this time last year.

In October 2017, there were 847 listings, down 17% from the same time last year. St. Thomas saw a total of 67 homes sold, down 21.2% from 2016 and the average home price in St. Thomas was $284,344 up 25.7% from October 2016.

The following chart is based on data taken from the CREA National MLS® Report for September 2017 (the latest CREA statistics available). It provides a snapshot of how average home prices in London and St. Thomas compare to other major Ontario and Canadian centres.

Average home prices in Canada at the end of September 2017

Want To Sell Your Income Property In London Ontario?

Thinking of Selling a Multi-Family Residential Property in London Ontario & Area?

 Over the past few months there has been a shortage of good quality duplexes, triplexes, four-plexes and 6-12 unit properties in London and area.

All the ones I had were sold or are conditional  from 27 units and down and I have 7 registered buyers, (pre-approved for financing and experienced) that are looking to buy, actually more than looking, real serious, no nonsense types who can make a decision within 24 hours.

Do you want to take advantage of my seven or of the Realtors from the GTA area begging me to find their buyers a property?

Now, do not get me wrong, my investors are not wishy washy or unwashed, they want to see value or be able to create value and they are long term investors so they are not interested in drastically overpriced properties, junk or cap rates below 6%.

Stress Test for Mortgages

Come 2018, the stress test for mortgages comes into effect and I am hearing from mortgage providers that there be fewer buyers that will be able to pull the trigger on a purchase.

That is good news for my buyers, the stress test has little effect on them and will actually be better for them, less buyers, less competition.

So, if you have a property you want sold without a song and dance process, contact me, I don’t sing and the only time I dance may be if there is amber liquid around and that is very unlikely as well.

10 Excellent Steps To Sell a House in London Ontario

10 Excellent Steps To sell a House in London Ontario

Every seller would like their home to sell quick and bring top dollar. That makes sense but does not always happen! Careful planning and knowing how to  spruce up your home that will send home buyers scurrying for their cheque books be the goal. Here is how to prep a house or a condo and turn it into an irresistible and marketable home.

Time Required: Seven to 10 Days

Here’s How:

  1. Disassociate Yourself With Your Home.
  • Say to yourself, “This is not my home; it is a house or a condo– a product to be sold much like a new home builder will do it. It is bricks and mortar!
  • Make the mental decision to “let go” of your emotions and focus on the fact that soon this house will no longer be yours.
  • Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
  • Say goodbye to every room.
  • Don’t look backwards — look toward the future.

New Mortgage Lending Rules

  1. De-Personalize.
    Pack up those personal photographs and family heirlooms. Buyers can’t see past personal artifacts, and you don’t want them to be distracted. You want buyers to imagine their own photos on the walls, and they can’t do that if yours are there! You don’t want to make any buyer ask, “I wonder what kind of people live in this home?” You want buyers to say, “I can see myself living here.”
  2. De-Clutter!
    People collect an amazing quantity of junk. Consider this: if you haven’t used it in over a year, you probably don’t need it.
  • If you don’t need it, why not donate it or throw it away?
  • Remove all books from bookcases.
  • Pack up those knickknacks.
  • Clean off everything on kitchen counters.
  • Put essential items used daily in a small box that can be stored in a closet when not in use.
  • Think of this process as a head-start on the packing you will eventually need to do anyway.
  1. Rearrange Bedroom Closets and Kitchen Cabinets.
    Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
  • Alphabetize spice jars.
  • Neatly stack dishes.
  • Turn coffee cup handles facing the same way.
  • Hang shirts together, buttoned and facing the same direction.
  • Line up shoes.
  1. Rent a Storage Unit.
    Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room’s purpose and plenty of room to move around. You don’t want buyers scratching their heads and saying, “What is this room used for?”
  2. Remove/Replace Favorite Items.
    If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won’t want it. Once you tell a buyer she can’t have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
  3. Make Minor Repairs.

 

  • Replace cracked floor or counter tiles.
  • Patch holes in walls.
  • Fix leaky faucets.
  • Fix doors that don’t close properly and kitchen drawers that jam.
  • Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls.
  • (Don’t give buyers any reason to remember your home as “the house with the orange bathroom.”)
  • Replace burned-out light bulbs.
  • If you’ve considered replacing a worn bedspread, do so now!
  1. Make the House Sparkle!

make the house sparkle

  • Wash windows inside and out.
  • Rent a pressure washer and spray down sidewalks and exterior.
  • Clean out cobwebs.
  • Re-caulk tubs, showers and sinks.
  • Polish chrome faucets and mirrors.
  • Clean out the refrigerator.
  • Vacuum daily.
  • Wax floors.
  • Dust furniture, ceiling fan blades and light fixtures.
  • Bleach dingy grout.
  • Replace worn rugs.
  • Hang up fresh towels.
  • Bathroom towels look great fastened with ribbon and bows.
  • Clean and air out any musty smelling areas. Odors are a no-no.
  1. Scrutinize.  Get More Money for your London Ontario Home
  • Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
  • Linger in the doorway of every single room and imagine how your house will look to a buyer.
  • Examine carefully how furniture is arranged and move pieces around until it makes sense.
  • Make sure window coverings hang level.
  • Tune in to the room’s statement and its emotional pull. Does it have impact and pizzazz?
  • Does it look like nobody lives in this house? You’re almost finished.


  1. Check Curb Appeal.
    If a buyer won’t get out of her Realtor’s car because she doesn’t like the exterior of your home, you’ll never get her inside.
  • Keep the sidewalks cleared.
  • Mow the lawn.
  • Paint faded window trim.
  • Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
  • Trim your bushes.
  • Make sure visitors can clearly read your house number.

Sounds like a lot, doesn’t it? Well, it will be worth it and I have other ideas, tips and strategies that get results , day in, day out. Lets talk!

32 Minutes Will Make Buying A Home in London Ontario Easier!

First, Second ,Third Even Fifth Time Home Buyers

Ask Sutton Group Envelope Real Estate


Have you been driving around looking at open houses, searching the web, picking up real estate magazines in a constant search for a home? Then find one that you fall in love with and its been sold or a little out of your price range? It gets to be frustrating and a waste of time to say the least.  I know the feeling; I was there once myself.  The problem is most home buyers  just don’t know where to start. 

So you ask many of the Realtors you meet  questions about home buying and get different answers, becoming  even more confused.  Well there is a right way, and a wrong way, and the best way of getting the right house, and at the right price.  You want accurate and proven information (facts) that will guide you through the jungle of home buying with ease and success.

Have you or will you face any of these situations?

  • You’re looking to make one of the most important purchases of your life and you don’t want to get burned because of not knowing whom you can trust, or making a mistake that could cost you thousands of dollars later.
  • You do not know the values in the marketplace and you want to be assured of getting the most that you can for your money, without having any regrets after your closing?
  • You’re feeling out of control because there are so many unanswered questions. Making it hard to know where to start.

Is there an easier way to go about it?

If any of these situations sound familiar,or, you do not even want to go there,  then we  can help you prepare you for the purchase of your next home.  Doesn’t it make sense that in order for you to make one of the most important decisions in your life you should be well informed and have all the facts?

I say that because I was in your shoes.  In fact, I was once facing every one of the above situations.

Just 32 Minutes of Your Time Will Save You from “Years of Headaches”

How? Give us a call 519-435-1600 or contact us, we will arrange to set up a brief get together, you tell us what you want and when and we will offer some suggestions and leave you with some great information.

Call 519-435-1600

You are under no obligation what so ever, you don’t have to sign anything, don’t bring a thing, not even a pen, just yourself or you and your partner, we might even offer you a free coffee or water!

 

 

 

How To Find a Buyer For Your London Ontario House

One of the biggest downfalls I see when selling a house in London Ontario, be it through a real estate brokerage or a For Sale by Owner (FSBO) Company is that most sellers think that if they do the following:

  • Put a sign out front
  • Get your home on MLS
  • Take some pretty pictures
  • Maybe make up some feature sheets
  • Maybe run an ad with the agent’s picture larger than your home
  • Run an Open House

house for sale

Home buyers  have easy access to information, and over 96% of homes are first seen through their desktop or hand held device , so your home requires quick, thorough exposure to all markets, not only on the web but social media areas as well.

Plus, who is going to buy your home? Marketing to that group, in other words, focusing on the type of the buyer you wish to attract is extremely effective and works!

For example, if you have a 4 bedroom, 2 car garage house which is close to good schools, of course you would market to families, not to an empty nester or single person. Or, a one floor, 2 bedroom condo in an upscale neighbourhood of London, you would not market it to a family of 4!

Focus on your market (or tell your real estate salesperson to)

Keep in mind that most home buyers view between 10-16 homes in London Ontario, they are very much aware of price, other homes similar to yours and with a good real estate buyer representative helping them, they can laser focus on the home that fits their budget and lifestyle.

focus on your home buyer

Why not focus your home on that buyer? Want to know who that buyer may be? Why? How?

That is what I do, I market homes to sell in London Ontario.