Could Energy Costs Affect the Sale of A Home in London Ontario?

Will energy costs affect the sale of a home in London Ontario?

It is possible.

With predictions that energy costs may increase by as much as 40% over the next few years, if not all ready, have you had a look at your hydro bill lately?

energy costs could affect the sale of your home

The Affordability Rule for Home Buyers Called PITH

The monthly housing costs shouldn’t be more than 32% of gross monthly income. Housing costs include monthly mortgage payments (principal and interest), property taxes and heating expenses.

  • Principal,
  • Interest,
  • Taxes
  • Heat

 

For example, if income was $50,000 a year, the gross monthly income is $4,167, therefore to stay within the 32% range, the PITH rule is $1,292. If the mortgage payment is $1200 a month and utilities such as water, electrical, gas averages $360 per month equalling $1560 per month, you would be over the 32% rule, it is actually at 37% and in most cases, not qualify for a mortgage.

At $60,000 per year, which is $5,000 a month, the 32% would be $1,600.  Here is a great link for you to learn more about debt percentages and rules.

So, what has that got to do with selling your home?

You will attract more buyers in your price range because more buyers would qualify for a mortgage if energy costs were below average.

It holds true for a $100,000 plus income earner as well.

Before upgrading your home and doing improvements, your first priority may be to see how to get the energy use down.

As well, when buying a home in London Ontario, do not just look at the purchase price. What is it going to cost to maintain it? It would be real wise to know exactly what the utility costs are, it will help get approval for a mortgage easier and if you were ever to sell your home down the road; you know your home with a low energy use will sell quicker than a home that has not been energy efficient.

In two separate instances last week, my buyer clients chose homes that were more energy efficient over others in the neighbourhood, even over better priced ones, and in one case, over one that they loved but could not get their head around the expense it would have taken to get the home energy efficient

One was a condo townhouse with electric baseboards and the other was a 23 year old house with original windows and the original furnace.

Townhouse For Rent/Lease in Chelsea Green, London

Photo Link
Beautiful location

•  2 bath, 3 bdrm townhouse – $1,350.00. Immaculate Monthly

– What a beautiful quiet complex in London. Close to Victoria Hospital, downtown, shopping, dining and walking & biking trails. This extremely well maintained 3 bedroom, one and 1.2 bathroom townhouse has 6 appliances and gas furnace with central air conditioning.

Only $1350 per month plus utilities.

Property information

Why Fear Buying a Home in London Ontario?

When buying a home in London Ontario & area, be it your first time or your 5th, most home buyers face at least one of the following.

Have no real estate fears in London Ontario

  •   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 feel that you know the values in the London neighbourhoods, but are not really sure. You know how much you are pre-approved for, but you don’t really want to go that high. What you really would like is to be assured of getting the most that you can for your money, without having any regrets after the sale.
  • You’re feeling a bit overwhelmed because there are so many unanswered questions. Making it a challenge to know where to start.

     Is there an easy way to buy a home?

NO!

I am not trying to be smart here or offend anyone. Fear can be a good thing and I truly believe as a professional Realtor® in London Ontario, there is no need for a buyer to have uncertainty and fear of the unknown.

Buying real estate in London Ontario and area is a process, not an event. There are proven steps that all happy and successful buyers have taken and why not you?

I have helped hundreds of home buyers in London through the process and they graciously have thanked me.

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 protected as well?

Not all Realtors are the same!

One Floor Homes In London Ontario. How many?

                   One floor houses and townhouses in London Ontario and area

Last week I worked with 5 separate home buyers, all looking for either a one floor condo townhouse (townhome) or a one floor ranch or bungalow. Having reviewed on line and researched 143 of them and seeing 61 of them, here is my helpful (or disparaging observation) about those I saw and researched

(On a side note, I received an email the other day from a gentleman wanting to know how many sheep he could legally raise on a ranch in London!)

A ranch home is larger than a bungalow with more interior space. At present there are 9 houses between $100,000 to $150,000 available for sale, no condos. Of those 5 are real dogs!

a real dog of a house in London Ontario

There were 37 houses  & 2 condos between $150,000 to $200,000 for sale and of those, 14 were a really a good deal!                                well priced homes in London Ontario

Homes from $200,000 to $275,000 led the way with 27 houses and 11 condos and some of them really need some work!                          fixing up a house in London Ontario

There were 35 houses between $275,000 to $400,000 , 16 condos and 43 houses over $400,000  and 19 townhouse condos in London Ontario.  You would think of a house or a condo over $275,000 would be pretty nice, but 18 of these were in need of elbow grease, flooring, bathrooms, kitchen cabinets and maybe  four hosts from any reality real estate show to do the work! I am not kidding 5 of those your dog wouln’t live in

.some houses in London Ontario need TLC

So, if you were to buy a house in London Ontario or a one floor condo in London and area would it not be wise to know the good values and which homes were sleepers?

Good house deals London Ontario

A sleeper is a well priced home, in great shape, inside and out and in a great safe neighbourhood. Why guess or take advice from anyone who wants to drive you around town and waste your time viewing junk, when you can take advantage of my research, knowledge and closet humorist?

Office Space for Rent London Ontario

office space to lease London Ontario
Office Space for Lease, Sub-let or Long Term!  1,030 square feet for only $1,241.00.
MLS® #590630

Sublease until Oct 31, 2017 or can do a 2-5 year lease, second floor 1030 sq.ft. office space, presently being used as a real estate office, reception, 2 meeting rooms, manager office & 4 work stations. $1240.72 per month ($8.00 + $3.59 common area = $11.59 gross per sq ft)

Plenty of free parking, high traffic area, Base Line W, Wharncliffe, Commissioners road, behind Audi dealership.

Shoppers Drugmart,banks, restaurants, grocery store all nearby .

Option to buy or lease existing furniture, computers, copiers, phone system , etc. ! Just bring your cheque book & files, ready to go.

By appointment only.

Property information

London Ontario Real Estate Sales Are Up!

999 homes were sold in London and Area in August 2016 making it the best August on record through our local MLS system, “The London and St. Thomas Association of Realtors®, (LSTAR).”

LSTAR

804 detached homes were sold along with 195 condos. Year-to-Date sales were up 9.1% .Inventory (available homes for sale) was down 29.4%.

Sixty two homes sold in St. Thomas in August, slightly short of the total for last August. The average price for a home in St. Thomas Year-to-Date stands at $225,317, up 3.9%.

The best-selling house style in LSTAR’s jurisdiction for August 2016 was the two-storey, then the bungalow, followed by ranches, then townhouse condominiums, then high rise apartment condos.

The average price for a detached home Year-to-Date stood at $295,078 up 4.6%, while the average price for a condo over the same period stood at $201,393, up 6.1%.

The average price of all homes sold through LSTAR’s MLS® Year-to-Date stood at $277,236, up 4.8%.

House Style Units Sold Average Price
2 storey 239 $384,384
Bungalow 174 $220,079
Ranch 109 $336,907
Townhouse 95 $188,571
High rise apt. condo 40 $170,676

The following table, based on data taken from CREA’s National MLS® Report for July 2016 (the latest information available), demonstrates how homes in LSTAR’s jurisdiction continue to maintain their affordability compared to other major Ontario and Canadian centers.

City Average Sale Price
Vancouver $1,042,110
Toronto $723,865
Fraser Valley $660,985
Victoria $572,339
Hamilton $494,949
Calgary $478,327
Edmonton $386,640
Ottawa $367,984
Kitchener-Waterloo $361,993
Montreal $358,891
Saskatoon $343,309
Regina $319,004
Niagara Region $318,969
London St. Thomas $277,660
Canada $478,954