Price a House in London Ontario, High or Low?

More Money When You List Your House For Sale in London Ontario

When  a seller sits down to interview Realtors, it’s easy to get caught up in the excitement over choosing a sales price. More money means more financial opportunities for the homeowner. Perhaps it means the seller can afford to buy a more expensive home, help pay for their child’s  education or take that long overdue vacation. Unfortunately, some home sellers often choose the Realtor who suggests the highest list price, which is one of the worst mistakes a seller can make.

Interviewing a Realtor

Establishing Value

The truth is it doesn’t really matter how much money you think your home is worth. Nor does it matter what your Realtor thinks or ten other Realtors just like her. The person whose opinion matters is the buyer who makes an offer and their Realtor. Pricing homes is part art and part science. It involves comparing similar properties, making adjustments for the differences among them, tracking market movements and taking stock of present inventory, all in an attempt to come up with a range of value, an educated opinion.

This method is the same way an appraiser evaluates a home. And no two appraisals are ever exactly the same; however, they are generally close to each other. In other words, there is no hard and fast price tag to slap on your home. It’s only an educated guess and the market will dictate the price.

Is it Too Low?

Homes sell at a price a buyer is willing to pay and a seller is willing to accept. If a home is priced too low, priced under the competition, the seller should receive multiple offers to drive up the price to market value. So there is little danger in pricing a home too low. The danger lies in pricing it too high and selecting your Realtor solely on opinion of value.

How It Starts To Go Wrong :  

Here is a story of a seller who did not interview her Realtor. She plucked the first one off the Internet because, “She looked like such a nice person.” She priced her home at $419,000. This Realtor never heard the experienced Realtors chuckling or shaking their heads  at the price. After 90 days, the listing expired.

Continues To Go Wrong The next Realtor,  who was referred to her by a co-worker, ( again, no interview)  listed the home at $404,900. Months passed and eventually the price dropped to just under $390,000. Still no takers. A few tire kickers, but no serious buyers.

More Than a Year Later By the time the last Realtor was hired to list this home, the seller had grown weary and exhausted, exasperated and of course, discouraged.  It was now 12 months later. Together, the seller and her professional listing Realtor priced the home at $385,000. It immediately sold for no conditions. The sad part is the comparable sales in the neighborhood fully justified a price of $400,000, but the home had been on the market for too long at the wrong price, and now the market had softened.

Some Realtors Specialize in Expired Listings There are Realtors  whose basic real estate practice is comprised of finding expired listings and relisting them at market value. I know one  who sits in a small room with a phone, desk and chair, dialing number after number. Last year she sold more than 17 homes & has 3 active listings right now. She makes a pretty good living repackaging overpriced homes.

pricing a home to sell

Protect Yourself

The question is how much money have those expired listings cost the sellers? The financial loss often exceeds the extra mortgage payments paid and goes beyond the uncompensated hassle factor of trying to keep a home spotless during showings. It affects the value that a buyer ultimately chooses to pay because it’s not a fresh listing anymore. It’s now stale, dated, a market-worn home that was overpriced for too long.

If you or anyone else you know who may be selling a home, don’t let it happen to you.

Work with a professional Realtor and ask these questions before you hire anyone!

Wortley Village Houses Are Selling Quickly. Or Are they?

  There has been a lot of activity concerning real estate sales in Wortley Village, Old South London so far this year, with sale price up on houses, multiple offers, less days on the market (how many days it takes a house to sell) and buyer and seller frustrations!

First: the facts:

  • March – houses sold for 102% of asking price and within 22 days.
  • February- houses sold for 100% of asking price and within 23 days.
  • January – houses sold for 104% of asking price and within 9 days!

In this blog post, I wrote about the 12 month history of sales in London Ontario and the fact that 40% of homes listed for sale did not sell within 60 days, yet some sold for more than the asking price and in a short period.

Was Old South any different? As of March 25, 2017, 43 homes were sold, there are 23 still listed for sale, (9 of those are over 35 days on the market)  and 5 did not sell!

One of the homes that did not sell, the sellers received an offer for their asking price and turned it down! I know of 7 of the homes that sold had more than 10 offers on them!

I have my opinions why this turmoil occurs, there will be disappointments for some and ecstasy for others and perhaps delayed gratification for some or, depending what the real estate market is like over the next 2 years, financial challenges and buyer’s remorse.

Warren Buffet states regularly ” People get emotional about stocks, yet stocks have no emotion for people”. Real estate is no different and fear of loss, greed and ego costs money!

 My point?

Make decisions on facts, not opinions. Most opinions about the weather, a sports team or vacation place do not hurt too much if you are wrong, an opinion without facts about money and real estate really hurts!

 206 houses were sold in Wortley Village, Old South London in 2016 through MLS, starting as low as $200,000 and up to $749,00 and the 26 days on the market and most selling for full price verify that the real estate market in London Ontario and especially this neighbourhood  is very healthy!

11 condos sold in the same period for 98.9% of the asking price and took about 42 days to sell.

 The character and charm of this great London neighbourhood is what attracts home buyers and the people who do live in Old South love the ability to walk and shop in the Wortley Village core, with tree lined streets and no cookie cutter homes.

Living in Old South London       

Why Is The London Ontario Real Estate Market So Vibrant?

I am always asked when is the best time to list a house or a condo on MLS in London Ontario, and:

  • how is real estate doing?
  • what are  prices like?
  • does this chart show why?

Last 12 month inventory of homes for sale London Ontario

As you can see, there were 600 less  houses or condos for sale in  February 2017 than February 2016, meaning more buyers than sellers, meaning when demand is higher than supply, prices usually rise.

The most glaring part I would like to point out is, have you noticed the spread between units listed and units sold? For example, there were 1385 properties listed for sale, but only 837 sales, which means that 40% of the properties listed for sale did not sell!

I hear many excuses why homes do not sell or the rationalization of why some homes sell quicker than others and some, for more money.

Understanding the local market and facing the reality of it can be a double edged sword for many London home owners. Selling your home is not a lottery, or a gosh by golly whim, or just putting up a sign on your lawn or pricing your home because one of your co-workers and one of your friends told you your home is worth ‘x’, because they sold their home last year and know of a friend of a second cousin who has a friend who used to sell real estate part time. (whew!)

Yes, there are speculators and people from the GTA and their Realtors coming to London and buying houses and condos, (with very little knowledge of neighbourhoods in London Ontario, etc) and all too pleased to buy a home that is at minimum, half of what a GTA home sells for!

That someone is going to get hurt overpaying seems to be no concern for some.

I cannot predict the future and as I prefer to live in the moment,  my experience has proven to  me (and history has a habit of repeating itself) that real estate will sell based on price, condition and location and the amount of listings (competition) there are that compete with your home has an effect.

60% of the sellers got it right, 40% did not. Mr. and Mrs. Buyer decide on price in the end, not the seller.

Oh, and for buyers, why not go look at the 40% of houses that have not sold?  You will find what you want once the seller realizes their price is not realistic.

Interested?

 

 

Prices of Hunt Club Houses in London Ontario Rising

Houses and condos in the Hunt Club neighbourhood in London Ontario in 2017 so far have been sought after with the days on the market dramatically reduced and the prices have risen as well, for example:

  • March prices received were 107% over the asking price and 1 day to sell
  • February, 103% over asking price and 11 days to sell
  • January , 101% over asking and 20 days to sell.

 What does this mean?

If you are thinking of selling, now may be the time to capitalize on the market energy and if you are buying, keep your emotions in check and do not get caught in the frenzy, that is where I come in, I will not let you.

They say that the truth hurts, I am not afraid to tell you the truth.

Hyde Park London Ontario House Prices Continue to Rise

2017 prices and the days it takes a house or a condo to sell in Hyde Park in London Ontario are setting all time records, can it continue?

Here is what has occured so far in 2017:

  •  March houses sold for 107% of asking and 19 days on the market and condos 106%
  • February houses sold for 103% of asking and 12 days on the market and  condos, 102%
  • January houses sold for 101% of asking and 16 days on the market and condos 100%

Where do you stand if you are thinking about selling your house or condo in Hyde Park? What about buying?

What can you do to protect yourself? What you do over the next 90 days is critical, are you protected?

In these roller coaster days of pricing and availability, this is where a professional Realtor really stands out!

Byron London Ontario Real Estate is Selling!

Houses and condos in Byron London Ontario is selling at a record pace, price wise and the amount of time it takes for a home to sell.

 Yes, this is a sellers market for Byron in London Ontario in 2017 and here is why:
  • March houses sold 104% of asking in 15 days, condos 102%
  • February houses sold for 106% of asking in 11 days, condos 101%
  • January houses sold for 101% of asking in 16 days, condos 101%

As a property owner in Byron, how can you take advantage of this market and if you want to move to Byron, what should you do?

What could you do?

What will you do?

Be wise!

London Ontario Home Buyer Worries?

  One of the ways to solve 3 London Ontario home buyer worries and concerns that occur with almost every home buyer is to break down those worries and to fully understand the process of home buying in London Ontario.
  1. Buying real estate is one of the largest purchases for most in their life and the fear  a of not knowing whom to trust, or making a mistake that could cost thousands of dollars years later. (Check out these questions you may want to ask a home inspector, a lawyer and a Realtor)
  2. Not being sure of the prices,availability, neighbourhoods and the selection of homes and being assured of getting the most for your money, without having any regrets afterwards.
  3. Feeling out of control because there are so many unanswered questions.  Making it hard to know where even to start.

These happy buyers had their 3 London Ontario Buyer worries answered

Is there an easy way to buy or sell a home? Not really! It takes time and being careful

If any of the 3 concerns sound familiar, doesn’t it make sense that in order for you to make one of the most important decisions in your life you may want to be well informed?In the current active London Ontario marketplace, the inventory of homes is low, the interest of buyers is high and with many buyers coming from the GTA (Greater Toronto Area) the demand is high. When demand is high, prices can rise, the fear of loss can occur and then, emotions cause some to cloud their judgement!

Do you not think it would be more prudent to understand exactly what is going on in the marketplace and not rely on someone else’s perceptions or erroneous opinions, get the facts, the brutal truth, check your emotions at the door and then proceed?

That is what these buyers did!

Some London Ontario Home Sellers Hurt Themselves

Why do some London Ontario home sellers hurt themselves and most times are not aware they do?

I was discussing this with a client of mine the other day as we had put in an offer on a house in London that had been on the market for about 51 days (the average is 27) and why the seller was being difficult?  Even his Realtor felt our offer was really good and was becoming exasperated with his client.

It reminded me of a guest blog a few years back and here it is:

Via Mike Carlier ABR CRS GRI (MarketLink Realty):

When sellers sign a listing agreement, they indebt the listing broker  to the fiduciary duties that they deserve from us.  Often, sellers do things that help the eventual buyer gain an advantage in the sales process.  Sometimes, sellers are their own worst enemies.

 I’m thinking about asking sellers to sign a statement acknowledging that they understand that certain acts or omissions by them will decrease the final price they receive and increase the time it will take to get there.  Here’s my first draft of possible acknowledgments:

 

•1.       I understand that my asking price will define the expectations and limit the number of buyers who see my home.  An unreasonably high asking price will create unreasonable expectations from buyers.

 

•2.       I understand that there is a finite number of buyers who may want to see my home.  Every appointment request that I refuse will significantly limit my chance of receiving an offer, and increase the amount of time needed to sell my home.

 

•3.       Every day my home is on the market is a day closer to a price reduction and/or failure to sell.  In the near term, housing data indicates that my home has a higher market value today than it will at any time during the duration of the listing agreement.  It is in my best interest to sell quickly, even if I don’t absolutely have to move soon.

 

•4.     Buyers typically tour between four and forty homes.  My home needs to be in first place to get them to make an offer.  If its price, condition, and presentation are not number one, I will not get an offer.

Close doesn’t count.

By the way, finally the seller listened to his experienced Realtor and accepted our offer.

Income Properties Near Western University

Income property near Western University while your child attends UWO?

Every year I get emails from across Canada & Europe from parents of students who will be going to Western or other facilities near UWO (The University of Western Ontario).University of Western Ontario

They are looking for a decent home that they can live in while attending Western, plus, have some room mates to offset the costs.

How about a 6 bedroom house, 5 1/2 years old, all the amenities and a few minutes to Masonville Mall and UWO?

For only $429,000! Or a nice 3 + 1bedroom townhouse, 5 minutes away for $299,000 or an upscale highrise apartment condo, 2 bedrooms for $359,000?

Here’s more.

Again, starting from $149,000 and up, there are many options to fit your budget and now is the time to start thinking about it and taking action.

When you do the math and think about what your child’s living cost will be for for the next few years and you can offset some or all of those costs, that is nice! It even gets better if inflation and appreciation occurs!

Of course, there are risks and that is why these clients employed me as their Realtor, I know the values, the neighbourhoods and the safety aspects of your child living away from home.

Home Sales in London Ontario Continues to Set Records

Real Estate in London Ontario and area set a new record in February 2017 with a total of 763 homes being sold, an increase of 17% over the same period last year.

London Ontario Real Estate Sales Are Up Again

In February, a total of 597 detached homes were sold, an increase of 15% over the previous year, while there were 166 condominium sales, up 24.8% from 2016. The average sales price was $307,831 up 7.9% from the previous month.

St. Thomas also had a very healthy February, with a total of 69 homes sold, up 25.5% from the same time last year. The average home price in St. Thomas was $242,028, up 25.7% from the previous month.

House Style Units Sold Average Price
2 storey 158 $436,333
Bungalow 70 $229,471
Ranch 53 $372,968
Townhouse 64 $206,166
High rise apt. condo 44 $193,576

The best-selling house style in the London Ontario are continues to be the two-storey, followed by bungalows and ranches. The average price for a detached home in February was $327,754, up 4.4% from the previous month, while the average price for a condominium was $236,180, up 19.8% from the previous month.

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

City Average Sale Price
Vancouver $851,384
Toronto $803,455
Fraser Valley $643,331
Victoria $611,362
Hamilton $522,978
Calgary $466,984
Kitchener-Waterloo $421,151
Ottawa $389,875
Edmonton $360,199
Niagara $346,059
Saskatoon $335,812
London St. Thomas $292,291
Canada $484,306

What does all this mean?

As you can see, our average home price in the chart above is the lowest so value is here, plus, with a shortage of homes on the market for sale and more buyers than sellers, short supply historically causes prices to rise.