A Sellers London Ontario Real Estate Market, How To Price a Home

 How To Price a Home When It Is A Sellers London Ontario Real Estate Market

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. 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.

I know, I know, I know,  it is a seller’s market but even so, do you know how many homes that have been sold , even over the asking price and still, the seller left money on the table? 

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 in London Ontario 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 home buyer. That would be inefficient.

The majority of Realtors market and promote homes to hundreds of other local Realtors and even Realtors from the GTA areas who do work with home buyers, 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 Late

  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 a Realtor 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 1 month later!

To get results, “Making assumptions is the mark of a lazy communicator!”

London Ontario Condos Are Selling

London Ontario condos are selling at a record pace and record prices, especially townhouses in London. So the question is, how do you, an owner of a condo , go about selling your unit?

Cross Fingers as a seller of real estate

What do most do? Call a Realtor they know or get a referral (because all Realtors are he same, right), then pick a price and then cross their fingers and toss and turn all night.

Selling a condo in London Ontario is a lot different than selling a house. It takes more skill to attract traffic (buyers) to your door!

There are only a few apartment buildings or townhouse complexes in London that allow a for sale sign out front, the majority of building do not permit signs or even notices in the lobby.

So, how do buyers know your  condo is for sale?

If you think that just being on MLS is all that is needed, think again. It takes a combination of MLS, external web sites, social media, blogging and links to prospective buyers!

Getting results (an offer) in a reasonable time (as of May 7, no more than 10 days is the norm)  should be the standard.

Learn how!

 

Do Not Ignore These 50 Tips When Selling a Home in London Ontario

  First impressions make a significant impact on a buyer’s decision-making process!

When selling a home in London Ontario, what a difference these ideas will make in how quickly your home sells and for what price. After every home we sell, we consult with our happy sellers and ask what they liked about our process and what they thought these tips made in the price they received. Here are a few of those comments.

Once your home goes on the market, it becomes a product. These tips and ideas allow you to highlight the best of your home and de-emphasize its flaws. It’s not about decorating, but actually turning your home into a model, to appeal to the broadest range of prospective buyers. The goal is to make people feel like they could live there, and the best way to do this is to “neutralize” the surroundings.

make the house sparkle  Bedroom01.jpg

Try out these helpful home selling tips  from stagers and real estate pros—things you can do for little or no expense—to put a home in prime showing shape and my experience tells me, along with my clients, you can get back $2.00 for every $1.00 you spend!

How’s that for a great investment?

  • Clear out closets and clutter—give away or pack up toys, linens, and small kitchen appliances to store offsite. Buyers are also forgiving of storage boxes neatly tucked away in a garage or basement.
  • Focus most on the most visible areas—the foyer, kitchen, living room, master bedroom, and family room.
  • De-personalize the home by removing photos, mementos, and dated items.
  • Use plants in colorful pots or inexpensive wicker baskets to fill in empty spaces.
  • Look to home catalogs for little details on beautifying the home. For instance, group books, pictures, and objets d’art appealingly on bookcases.
  • Try angling one or two pieces of furniture slightly and move furniture 4 inches to 6 inches from the wall to create more interesting room spaces.
  • Put away large collections— porcelains, plates, and so on.
  • Remove valuables, prescription medicine, collectibles, and breakables.
  • Trim trees, prune shrubs, and make sure the lawn is mowed and watered regularly.
  • In summer, turn on the sprinklers for five minutes, 30 minutes before the open house. It makes the lawn and driveway sparkle.
  • Refrain from cooking anything that leaves a distinctive odor, such as fish, garlic, or cabbage.
  • Hire a professional service to clean the home, including the carpets and the windows.
  • Set the dining room table with attractive linens, dishes, and stemware.
  • Arrange fresh or silk flowers throughout the home.
  • A mirror in a pretty frame can make a small room feel more open.
  • Use as much natural light as possible. Add extra lamps in dark rooms or corners.
  • Make functional repairs—fix dripping faucets, sticking doors, and broken fences.
  • Bring in another pair of eyes—even if it’s not a professional. That person may see problems you  have missed.

Get 50 more of these inexpensive tips and ideas to get your home sold!

    

There Are Only Two Approaches To Selling a House In London Ontario

From the early ages on to today, there are two ways to selling a house in London Ontario, the price approach or the traffic approach.

Most real estate sales people have been taught and  are still being taught the price approach . You list a house at a certain price, if it doesn’t sell in a month they want you to reduce the price, and then another month,  they ask you to reduce the price again and so on! Then when the price gets so low, the vultures come out.

 

Unhappy home seller

The second way to sell a home is the traffic approach. In other words, expose your home to get a lot of traffic (qualified buyers). That means effective websites, blogging, social media, direct marketing, an abundance of buyers already out looking and promotions to get new qualified buyers to see your home so they can buy it.

You can have the prettiest, fanciest and nicest home in the desert or the jungle but if nobody sees it, nothing happens.

  Selling a house in London and South West Ontario  takes more than putting a sign on your property and pretty pictures on a web site

How well and quickly  your home sells takes a combination of the traffic approach and the reality of the market !

The brutal truth on how to sell your house or condo quicker & and not leave any money on the table is not for everybody.

 If I want:

  • my shoes repaired, I go to a shoe repair place
  • my car fixed, I go to a professional & qualified mechanic
  • my health cared for, I go to a doctor or a related health practioner, not the internet or watch medical TV shows or ask Dr. Google.

If you want real estate advice & guidance, who do you go to? 

  • how would you know if they are any good?
  • how would you know if they can get the results you would like?
  • how would you know if they can negotiate for you and think about your bottom line and not theirs?
  • how would you know that well meaning and caring family members who are giving you advice, co-workers or friends are misinformed?
  • how would you know that what your neighbour said they sold their house for is correct?

 What Is My Point?

We sell homes as a profession, that is what we do, when you want your home sold, let’s talk!

To Sell a House London Ontario, How Do Buyers Find My House?

To Sell a House in London Ontario, Where Do The Buyers Find My House or Condo?

where do house buyers in London learn about your home?

The latest Canadian Real Estate Association (CREA) survey reports 96.7 % of homes sold have been previewed online! Yes, the MLS search is one of the first places buyers go and also why your professional lister should have a great web presence or three!

Below is  a Breakdown of How Buyers get to Find Your Home.

  • 40%  Salesperson contact
  • 26% For Sale Sign
  • 19% Responded to a lister’s blog, website but purchased different property
  • 8%  Referred by a relocation service
  • 4% Bought for a combination of reasons
  • 1% Bought advertised property from a magazine or classified ad.
  • 1% Bought open house they saw
  • 1% For Sale by Owner

​ Knowing why & how buyers find your home when there are other houses for sale in London Ontario  competing with your home will enable you to make some wise decisions when it comes time to put your home on the market.

By the way, the real estate market in London Ontario is a seller’s market, meaning more buyers than sellers which may make you think about whom you hire to sell your home. Anybody who can chew gum can plop a sign out front of your home , but let me let you on to something I have observed over the past 3 weeks, it is the experienced quality Realtor who is getting their client the most money and best terms!

So that is 93% of sales!

Contact us- Sutton Group Envelope Real Estate

Will Energy Costs Affect The London Ontario Real Estate Market

   Will energy costs affect the sale of a home in London Ontario and the London Ontario Real Estate market??

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 a home in London Ontario?

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.

energy efficient house London Ontario

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 three separate instances last week, my buyer clients chose homes that were more energy efficient over others in a few London  neighbourhoods, 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

I was in a house in Old South London Ontario, Wortley Village area and they just replaced their boiler with an energy efficient furnace and they are very pleased with how much their energy costs have decreased and how much more comfortable and warmer they are right now.

If your house or condo is energy efficient and you are thinking of moving soon, you will most likely get top dollar and sell quickly, I can show you how!

Five Problems Home Buyers Have When Viewing A House For Sale

      Five Common Problems Home Buyers Have  When Viewing a Home For Sale.

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 FSBOs, as they are usually the ones showing their own home.

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 the 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.

 

Some buyers may over look some or all of these 5, but when they do, they offer a lower price because they think, “If the seller does not care about the clutter or the unfinished projects, what else is wrong with the house?”

 

If your home is priced correctly and you have addressed the other items on this list, it will stand out like a diamond among the many lumps of coal out there.

Exclusive Envelope Real Estate Home Audit

Our ‘Exclusive Home Audit’ that we do before listing a home for sale entails these 5 and 31 others and we go over everything with you so that you can sell your home in a reasonable time frame and not leave any money on the table!

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!

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?

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.