Buying a House in London Ontario? How Sellers Price Their Homes

When buying a house in London Ontario, be aware that in real estate, there are 4 pricing strategies that have been used since Adam had to go out and look for a place of his own!

pricing a home in London Ontario

Clearly Overpriced:

Every seller wants to maximize the amount they receive . They may have an inflated value of what their home is worth because of: getting opinions from un-informed advisors and friends, having an over financed home, or they have renovated their home to a standard not consistent with their neighbours.

Somewhat Overpriced:

  About 75% of the homes on the market are overpriced. These homes sit on the market longer than they should as well. There are two main reasons these homes are overpriced. The seller believes that the home is worth more than the market has indicated, OR, the seller has left room for negotiating.

 Priced Correctly At Market Value: 

Some sellers understand that real estate is part of the capitalistic system of supply and demand. They have realistically priced their homes based on a thorough analysis of other homes on the market prepared by a good and knowledgeable Realtor. These competitively priced homes usually sell in a reasonable time and very close to 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, and, at or above, the asking price!

As a buyer, do you know which strategy will be used?

Why?

Knowing how to get an offer accepted at a price you are pleased with is a skill that very few Realtors have. I hope I have raised your awareness of how prices are determined ,  quality representation can save you a lot of time and money.

Slow Wealth With London Ontario Income Properties

We get tons of calls every year for people wanting a fixer-upper, especially after they have just watched some TV show where a couple bought  something, fixed it up and made gobs of money! Really?

Fixer upper

What about a couple who are handy or even want to be handy and who do not have to keep up with the Jones’s for appearance sake? Instead of buying that $400,000 or $500,000 home with the finished basement, nice schools, close to work, 2 car garage and then busting your butt to ensure all your monthly bills are paid?

And then, hoping that your home will increase in value in 5-10 years.

What about the couple who buy a smaller home outside for cash or put 5-10% down, have a 1-2 year plan to fix the place up and sell it and repeat this 4-5 times in 10 years?

Look at the math. Instead of a $1000 plus going to interest every month, you buy something where that interest goes perhaps $600-$800 goes to fixing your place up. after 1-2 years you sell it, you may earn $20,000  to $40,000 plus but lets say you only net $15,000? That’s low but stay with me here.

You do that 5 times or more? If you compared the couple who has had only one house after 10 years, mortgage poor or to keep up with their friends, go deeper in debt and get a bigger home, or the couple who uses their sweat equity and common sense after 10 years?

I have 14 couples now who followed this plan and let me give you 3 scenarios:

  • Couple number 1 lives in a $360,000 home, no mortgage and are under 35 years old and have no debt

  • ​Couple number 2 live in a condo now, no mortgage and are living off the rental income of their last 7 homes they bought, and instead of selling, they rent out
  • Couple number 3 are into house 3, it’s worth about $375,000, they owe just under $100,000 on it and their first home they bought, they scraped, borrowed and begged to come up with a $5, 281 down payment!

 

Are the above 3 different than most? Yes. you see, they are willing to pay the price in time, effort and I’ll use this dirt word prestige, to build their financial stability. Now, at the end of the day, 10 years from now, who is living the good life?

Is it easy? Safe? Nope! Is it wise and financially prudent? You bet!

So I ask, do you have what it takes or are you going to go through the rest of your life in debt and looking well off or no debt and feeling well? If you have what it takes or want to learn more, why not give me a quick call at 519-435-1600 now?

 Some Income Properties For Sale

Is It True About London Ontario Real Estate?

Is It True?

Every week I talk to hundreds of people about real estate, not only buyers and sellers, but Realtors, lawyers, mortgage people, home inspectors, want-to-be real estate moguls, tire kickers, blog comments, whiners, goody two-shoes, and to my past clients, friends and family.

I bet I hear 50 different opinions about real estate and when I ask why they say or think the way they do, it is because they read something (even though it was a British newspaper), watched something on TV (American), or their accountant, financial impersonator or boss said something that they most likely got from something they read or saw on TV!

So, I always ask, is it true?

Well, you would think I was asking them to go for a prostate exam; they get uptight (a pun) and then spout words of wisdom! I believe that facts don’t lie and until I can walk on water, I cannot predict the real estate market –or maybe I could if I made a career change and became a weather forecaster.

Enjoy the rest of the summer!

Disappointed In Buying a London Ontario House?

There’s nothing worse than ordering a sparkling water and then taking a sip and it’s flat.

No bubbles, no life, no spark.

Can't find a house in London Ontario

It’s the same with buying a house or a condo in London Ontario. You’re pumped up and excited to get to it.

But then no listings (or so your Realtor told you).  You were outbid on one. You sit  there & never hear from your salesperson or you miss out on a property because you were a day late finding out about it.

You get deflated, pi*#ed off even upset.

How do you get that fizz back? How do you add some carbonation to your home search?

You knew this was coming so here it is, call me!

London Ontario Income Properties , 4 Types of Money

   Money, The 4 kinds when investing in London Ontario Income Properties

Most investors in real estate and in fact, most business owners think of money in an abstract way and do not truly understand the brutal truth or refuse to acknowledge what money really is.

Briefly, money can be broken down into 4 parts, being

  • Profit
  • Income
  • Flow
  • Equity

You can have all the profit you want but without flow (cash flow) you cannot pay your suppliers (that is income out), your service providers, employees or your investors or lenders. Without flow, you erode your equity because you must borrow to keep afloat, if you are late in paying your monthly commitments, it erodes your profit and equity because of late fees, interest charges (income again) and or finding another supplier or support person or employee.

Real Estate Investing in London

I have seen many real estate investors with properties that have increased in value (equity) but they themselves are digging into their pockets to stay afloat and they think they are doing well!

I have seen many real estate investors who have great tenant incomes but forget about flow, profit and equity.

In turn, I have seen landlords with decent income (money in, money out) but have poor cash flow because of little profit!

Some guru’s say profit is perspective but I say unless you take all the 4 rules of money, apply them to the property you are thinking of buying or selling, you are not getting the true value of what money is.

I know, I know, I hear this all the time, my property increased 12% last year, or, “I never have vacancies”, or “My mortgage payments are low” and on and on.

This ezine is not the place to go into detail about the 4 rules of money, so I hope I have changed your perspective about money, I know my clients have and their financial health has improved considerably and in turn their future money worries have subsided and in some cases, vanished!

When you are ready to strategically invest in real estate, who are you going to call?

Income properties now for sale in London Ontario

Can You Sell Your London Ontario House For $10,000 -$50,000 More?

If you could sell your London Ontario house for $10,000- $50,000 more, would being  aware of what  home buyers are looking for & don’t care about help you do that? In a recent survey of 3167 Realtors, here are a few insights.

what is in and out when buying a home

IN

  • walk-in closets
  • laundry rooms on main or second floor
  • low-e-windows
  • great rooms
  • Energy Star appliances
  • 9 foot ceilings
  • two-car garages
  • programmable thermostats 
  • granite counters

​                                                            OUT

  • outdoor kitchens
  • laminate counters
  • outdoor fireplaces
  • sunrooms
  • two-storey foyers
  • media rooms
  • whirlpool tub in master ensuite
  • carpet on the main level

When it comes time to sell or update, keep these in mind, but what if you do not have any of these, or your home is older or you do not have the funds or time to update?

This is where skill in marketing shines! Where pricing is very important and ‘Molly Maid’ or good old soap and water will make your home shine!

house cleaning

If you could have a room to room breakdown of your whole house or condo that would point out what could be done to improve the home’s value, if it would matter or not; or; would you get that money back if you did the fix ups?

It takes less than 1 hour to do and you will definitely have ideas to increase your home’s value. Many client’s have told me they got anywhere from $10,000 to $50,000 more, SO you can too!

  If $10,000 to $50,000 more in your bank account is important to you, let’s get together. There is no fee for this, there is no obligation and I won’t hold your children , your pets or your spouse as hostage.

 Why not see how you can get more money now!

London Ontario Real Estate Market Prices Up June 2018

London Ontario and Area House & Condo Sales for June 2018

  Sellers Market London Ontario

1080 homes in the London and St. Thomas Association of REALTORS® (LSTAR) area were sold in June, less than in June 2017, which was a record-setting month with 1,264 homes sold!

Sales activity remains above the 10-year average, as the marketplace continues to manage the lowest inventory levels since 2009. Average home prices are making slight gains all across the region.

London East made the biggest gains, with the average June sales price at $295,541, up 11.7% from June 2017 and up 34.7% compared to June 2016. London North saw an increase of 11.6% from June 2017 with the average sales price of $479,237. That’s up 39.9% compared to June 2016. Meanwhile, the average sales price in London South was $372,881, up 9.2 percent from June 2017 and up 36.6% from June 2016.

Overall, the average June sales price in London and St. Thomas was $370,247, up 10.5% from June 2017 and up 32.7% from June 2016. Going further back, it’s a 72.0% increase compared to the average sales price 10 years ago.

In June, there were 1,779 active listings, down 4.3% from this time last year and down 40.0% from June 2016. The sales-to-new listings ratio was 72.0%, which the Canadian Real Estate Association (CREA) says represents conditions in the marketplace that favours sellers (a ratio between 40% and 60% is generally consistent with a balanced market). So for those considering selling their home, now would be an optimal time to get your house or condo on the market!

St. Thomas saw a total of 99 homes sold in June, down 9.2% from the same period last year. For inventory, there were 76 active listings, down 32.7% from last June and down 53.1% from June 2016. The average home sales price in St. Thomas was $294,471, up 5.5% from June 2017 and up 25.7% from June 2016.

A breakdown of some London Ontario neigbourhoods, 

The following chart is based on data taken from the National MLS® Report for May 2018 (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 Sales Across Canada 2018

 March 2018 Numbers

February 2018 Numbers

January 2018 Numbers

Real Estate Investing London Ontario Common Mistakes

Avoid 12 Common Mistakes Made by Novice Investors in Real Estate (and Experienced as Well!)

Real estate investment has provided many investors with positive cash flow, tax benefits and the satisfaction of making an impact in others’ lives.   However like any investment, real estate has intricate nuances and market trends that when ignored can cause an investor tremendous heartache.

invest in real estate

Unbelievably, many first-time investors are willing to part with their hard-earned cash without taking the time to study their investment.

They rely on traditional trends and gut feelings.

Before you risk your investment, take the time to learn all you can about your market.  By aligning yourself with the right professional, you can avoid these 12 common mistakes and you’ll ensure an excellent return on your investment.

1.   Failure   to  Determine   Your  Time  Need–  Cash flow, capital appreciation,  tax benefits, loss of management, equity pay-down and pride of ownership are just some of the things that need to be addressed before you make that investment.  A service-minded real estate professional can be a tremendous asset by taking the time to evaluate your needs and making sure you’ve got all your bases covered.

2.   Not Checking out the Seller or Seller’s Realtor’s  Numbers– Claims of extremely high rates of return run rampant in real estate investment.   Don’t  get caught up in the excitement  – check everything: rents, payment history, taxes, expenses, deposits, future modifications…everything!  Make sure you have the right agent.  It’s like having a good insurance policy against overlooking all the seemingly insignificant but very important details.

3.   Forgetting You’re Buying a Business– Owning investment property carries great potential for creating wealth and…some potentially difficult decisions.    Evictions, re-investment into the property and time management all need careful consideration. Remember this is not a “hands-off’ business.

4.   Avoid Negative Cash  Flow– Property that eats cash every month can drain your  working   capital. This creates stress, frustration and can become quite painful.  Predicting constant appreciation is extremely difficult if not impossible for the unseasoned investor.  A strain on your cash flow may cause you to sell the investment before the benefits of ownership are ever realized.

5.   Failure to do a Thorough Inspection– Look under every rock! Hire a professional inspector. Ask the tenants about pest problems, structural damage or recurring problems. Don’t overlook anything! A value-driven real estate professional will help you find the right inspector and can help you avoid costly mistakes.  When investing your hard-earned money, be sure and use sound business judgment!

6.   Failing  to Have  Adequate Insurance– Investment property brings liability.   Tenants, cars, parking lots, and property liability- the list is quite extensive.  Adequate insurance coverage is an absolute must!

7.   Inspect, Approve, and  Confirm All Documents– The list of documents  that need to be proofed can be overwhelming  to the first time investor.    Building permits, zoning  laws,  rental and lease applications, health licenses, laundry leases, underlying  loan documents, by-laws, title policies, inspection reports, purchase contracts, insurance…don’t attempt to do it alone.  The right professional can remove most of the stress and bring the transaction to a conclusion smoothly.

Inspect Everything

8.   Get a Bill of Sale For All Property Involved– Many types of personal property (appliances, furniture, fixtures, etc.) can be involved in an investment sale. Be very detailed…know who owns what!

9.   Charge Fair  Rents–  Vacancies,  turnovers and lease terminators  are your biggest    expense. Charge fair rents, treat your tenants with respect and respond as quickly as possible to their needs.   It’s  a lot less costly in the long run to take care of the little problems before they become big problems.  Vacant property is your Achilles heel.

10.   Select  Qualified, Good  Tenants From the  Start– Take  the  time  to check  references.    Previous landlords,  employers,  financial  references,  credit,  judgments  are  all  vitally  important.    If  there  are  any questions, investigate fully.  A little work up-front can save tremendous problems later on down the line.

11.   Make Sure  You get Tenancy  Letters– Get letters from tenants confirming the status of tenancy. Make sure their version of the rental or lease agreement corresponds with the seller’s interpretation. (If you are adopting tenants from a purchase)

12.   Don’t Spend  Positive Cash  Flow– Most successful investors have free and clear properties. Be sure to re-invest your cash flow back into the property payment and speed up the amortization schedule.   This decreases your debt load and increases your equity…which builds your net worth.

Investment property can be one of the most rewarding aspects of your financial portfolio.  Be certain to have all your “ducks in a row” before you invest.

get your ducks in a row

Do your homework and for goodness sake, work with a professional Realtor who knows income properties!

Income properties now for sale in London Ontario

 

 

 

Average Will Only Get Average Results When Selling a London Ontario Home

  When selling a London Ontario home, the first 10 days are critical and will make the difference how quickly it sells and for how much!

Checklist before you list your home

The most important time for a new listing in London Ontario is 2 days before it officially goes on MLS and the 8 days after!

Why 2 days before? I have found that when we have prepared and gathered all the necessary marketing tools the following happens:

  • The  documents are completed accurately and thoroughly, no mistakes or missing informationn & care can be taken to describe the home to prospective buyers.

  • All the pictures are taken, edited or retaken to show the home in the best way possible way.

  • All the marketing material is ready such as feature sheets, your “Buy me” binder, your www.youradress.com webpage and cards!

  • All the websites are loaded, social pages, virtual tours are ready

  • The home owner can do the final touch ups or any cleaning that may be required.

  • The For Sale sign is up and any directional signs if needed are placed

Your house on MLS

  Day 1 to Day 8: 

This is when buyers and their Realtor are searching the Internet for buying a home in London and certain streets for something new. When excitement is the highest. You can now:

  • Be ready for all showings, have all the marketing materials and home information ready for that one buyer who loves your home!

  • You have at least one weekend when historically home viewing is the busiest.

  • If no serious offers, the pricing may be wrong or if not enough showings, the marketing needs to improve  after 10 days!

 Once day 11 starts, do something drastically to attract new buyers to your home!

The way a transaction starts is indicative on how your sale will go, quickly or a long rocky road before you sell your home.

 

Listing with a strong listing Realtor who has a reputation for being thorough will never do you any harm. Who uses the web dominately, has an above average follow up system and the finances to market your home.

Ensure that before the sign goes up and the listing gets to the MLS, everything from the lock box, listing brochures and presentations is in place and ready to go. Make sure your listing Realtor has a system to let you view the comments and feedback about your house on a special listing website . Do they have a check list (we have 201 items on it) that they share with you before it even gets on MLS?

 Do not allow average to get you average results!

In summary, the most important time for a new listing when selling a home in London Ontario is BEFORE it gets on MLS.

Get Your Home Sold

How do I know this? We sell alot of homes, let’s get yours sold!

What Turns Home Buyers Off When Looking At London Ontario Homes For Sale?

What Turns Home Buyers off  When Looking at London Ontario Homes For Sale & Surrounding Area?

A messy House does not sell

 ODOURS …Overwhelmingly, the #1 complaint among prospective buyers was unpleasant odours in the  home.  The chief offenders were smoke, pet odours, and strange cooking aromas.  Some buyers turn right around and walk out because they found the smells so oppressive.  Most of us are unaware of the ‘peculiar’ odours of our homes because we become immune to the smells – the buyers are not immune to these same odours.

CLEANLINESS...This # 2 complaint  was that the seller simply did not bother to clean.  We’re not talking about home staging (which will help) or even unrealistic expectations of the home being spotless – just simple old-fashioned cleaning.  Selling your home can be a bit inconvenient, but when you have advance notice that a buyer is coming to view your home – clean it up!!!  At the very least, remove the pile of dirty dishes from the sink.

keep your house spotless when selling it

SELLER AT HOME…Coming in at #3 is having the owners at home while the buyers are trying to view it.     Most buyers felt very uncomfortable with the seller there.  Many said they could not take the time to really look at the features of the home because they were in such a hurry to get away from the seller.  This is a real problem for those selling their own home as they are usually the ones showing.

CLUTTER...The #4 complaint is related to the cleanliness point – the dreaded clutter.  We have all seen it on the home shows, many buyers have a hard time seeing your home because of all your stuff.

 UNFINISHED PROJECTS...Unfinished projects take the #5 spot.  If you are planning on selling your home, finish up any on-going home improvement projects before placing it on the market.  Homes with half-finished painting, flooring, trim, etc. gave buyers a bad overall impression.

If your home is priced correctly and you have addressed the other items on this list, it will stand out and sell!

Exclusive Envelope Real Estate Home Audit

Our ‘Exclusive Home Audit’ that we do before putting your home on MLS, on all our websites, on all our social media pages, our blogs, our signage entails these 5 and 31 other points.  We go over everything with you so that you can sell your home quicker, for more money!

  Why is That?

Because we excel at exciting buyers & their Realtor about your home!