The Price & The Sale of London Ontario Homes

    Well Researched Pricing Leads to  Your House Selling in London Ontario

Over 94% of home buyers surf the internet to begin their home search. That means home buyers are well aware of which houses are available & what the asking price is.

searching for a house to buy in London Ontario

Today’s home buyers are wiser and have access to information that was not available years ago. Industry surveys show that the average home buyer sees 10-16 homes before making a decision!

What that means in most cases is that home buyers and their sales representative know the market for homes similar to yours. Yes, every home may be unique and have different features but to get market value for those features and uniqness is another issue all together and that is what marketing is all about.

Knowing that, now more than ever, pricing is the key to selling a house in London Ontario and area. Some home sellers think that a higher price will give them some negotiating room. But in fact many buyers don’t even look at a property that is overpriced; much less make an offer on it. This can lead to the house listing becoming tired or in the worst case scenario, not selling at all.

The first question a home buyer asks me when showing them a house to buy is “How long has this house been on the market?”

an expired listing

If it has been on the market more than 20-25 days, buyers wonder if there is something wrong with the property. After a while, the home seller then has to drop the price, taking less than they might have if they had priced it correctly to begin with.

Homes that are well-priced attract the buyers in their price range.

If the buyer’s perception is that the property is a good buy, then the seller is positioned to receive the listing price or close to it.

In closing, when selling a home in London Ontario and area, how thorough is your research of the real estate market? Or your Realtor?

Our research team is second to none and we are not afraid to tell you the truth!

How To Set a Price For London Ontario Houses

Setting a Price on A London Ontario Houses, Exciting or Scary?

When most home sellers sit down to interview a Realtor, it’s easy to get caught up in the excitement of choosing a sales price. More money means more financial opportunities . Perhaps it means you can afford to buy a larger home, help pay off some debt or take that long overdue vacation.

Unfortunately, some home sellers often choose the Realtor who suggests the highest list price, which is the worst mistake a seller can make.

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 think. The person whose opinion matters most is the buyer who makes an offer.

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.

Even in the present hot market we have in London, choosing a price higher than your neighbour’s house that sold a month or two ago can come back to haunt you.

Why?

The market can shift very quick and even though our market is strong, there are still great homes for sale that have been on the market for 40-60 days, unfortunately, they are price wrong.

pricing a home ls like chess

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 method  to slap a price price 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 usually will 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 even interview Realtors. She plucked the first one off the Internet because, “He looked like such a nice guy and he is with that big real estate company in London.” He priced her home at $499,000.  After 27 days, no offers.

Continues To Go Wrong She then lowers the price to  $489,900 . Lots of showings but not offers. Eventually , another 30 days pass and the price is reduced to $479,900.  A few lookie-loos, tire kickers and eventually an offer of $449,900!

The sad part is the comparable sales in the neighborhood fully justified a price of $475,000, but the home had been on the market for too long at the wrong price, and now the market had softened.

London Ontario House

 Protect Yourself 

The question is how much money does it cost the sellers if a home takes a long time to sell? 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.

So, how do you protect yourself? An experienced listing Realtor who is willing to tell you the truth about the value of your home and have the strength & skills to back it up  is a start.

Homes that sell within 30 days usually sell for asking price or even more!

Will Energy Costs Affect The Sale Of Your London Ontario Home?

   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 equaling $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 in London Ontario and area?

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.

Good Communication Allows London Ontario Houses To Sell Better

One of the pet peeves home sellers have with their Realtor is lack of communication. You would think that is not the case but in a recent Real Estate Association article, 74.8% of respondents commented they wished they had better communication with their real estate sales person.

Communication sells London Ontario Houses

Below is a system that I have been using for years  because in all client testimonials, all talk about it and as success leaves clues, I will share with you  just a few traits and habits we use to keep our clients in the know!

  • We keep you up to date by phone calls, email and text, whatever is your preference
  • We follow up on all showings with cooperating agents with phone calls so that you will know what Realtors and buyers are thinking about your home.
  • Every 7 days we have a discussion about all the activity over that period, or lack of it!
  • As well, you will have a password to log in to your own address website where you can see all of our activity such as feedback on showings, all our notes and activities, prospect requests, listings emailed, graphs of activity, buyer interest and where they come from.You can know instantly on what we are doing to market your home.

Most importantly, I’ll negotiate forcefully on your behalf to get you the highest possible price, not try to make you take the first offer that comes to the table!

Upon acceptance of an offer, we coordinate with the cooperating agents, lender, home inspector, and appraiser; handle any complications that can occur so that the most important thing of all occurs . . . your home closes on time with no stress or worry!

You will always know what is going on.

 Why?

 Why not? You have hired me to market your home, get the best price possible & to sell it in a reasonable time and the only way that can happen is to have open & clear communication, be it good or bad!

 I market and sell homes, I do not just list them!

At What Price Do Your List Your London Ontario House For?

 Does Setting a Price on A London Ontario House Excite or Scare You?

When most home sellers sit down to interview a Realtor, it’s easy to get caught up in the excitement of choosing a sales price. More money means more financial opportunities . Perhaps it means you can afford to buy a larger home, help pay off some debt or take that long overdue vacation.

Unfortunately, some home sellers often choose the Realtor who suggests the highest list price, which is the worst mistake a seller can make.

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 think. The person whose opinion matters most is the buyer who makes an offer.

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.

Even in the present hot market we have in London, choosing a price higher than your neighbour’s house that sold a month or two ago can come back to haunt you.

Why?

The market can shift very quick and even though our market is strong, there are still great homes for sale that have been on the market for 40-60 days, unfortunately, they are price wrong.

pricing a home ls like chess

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 method  to slap a price price 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 usually will 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 even interview Realtors. She plucked the first one off the Internet because, “He looked like such a nice guy and he is with that big real estate company in London.” He priced her home at $499,000.  After 27 days, no offers.

Continues To Go Wrong She then lowers the price to  $489,900 . Lots of showings but not offers. Eventually , another 30 days pass and the price is reduced to $479,900.  A few lookie-loos, tire kickers and eventually an offer of $449,900!

The sad part is the comparable sales in the neighborhood fully justified a price of $475,000, but the home had been on the market for too long at the wrong price, and now the market had softened.

London Ontario House

 Protect Yourself 

The question is how much money does it cost the sellers if a home takes a long time to sell? 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.

So, how do you protect yourself? An experienced listing Realtor who is willing to tell you the truth about the value of your home and have the strength & skills to back it up  is a start.

Homes that sell within 30 days usually sell for asking price or even more!

De-stress When Selling a London Ontario Home

Whether you’ve lived in your home in London Ontario for awhile, you know it’s not just a shelter, or even another investment.  It’s the place where your dreams came to life, or unfortunately for some, ended.

Moving from a house or a condo

So, there comes a day when it’s time to move on.  You have taken the time to reflect on old memories, and prepare to build new ones.  You have decided it is time to leave the past behind for a new future.  It’s no wonder why buying or selling a home is often emotionally charged and potentially overwhelming.

   When you are thinking of selling your home in London Ontario, there are a number of things to think about, to prepare for, and to organize. 

   The price you are thinking or wishing to sell your home for is usually the first concern for most, and that I can truly appreciate.

  With the housing market being very strong in London Ontario, your home will definitely sell so perhaps you may want to ask yourself the most important question of all, “How can I maximize the sale price?”  

 Determining your bottom line based on accurate information BEFORE you list your home in London Ontario will give you peace of mind, clarity and a sense of security.

  I can write this because my clients have told me that not only did they get their price in the time line they wanted, the process was less stressful than they thought!

Keep in mind that information is available every where about selling a house or condo in London Ontario, but not insight!

  happy sellers with Envelope Real Estate

How Buyers Can Find Your London Ontario Home

Where Does a Buyer See Your Home First?

96% of homes sold have been previewed by buyers on the web, either through Realtor’s websites, MLS  or social media ! That is a huge number and why it is extremely  imperative when putting your home on the market  to have a great web presence or three!

I sell homes

 Below is How Buyers See Homes Before They Buy 

  • 59%  Salesperson contact
  • 27% For Sale Sign
  • 8%  Referred by a relocation service ( I work with 3 national companies)
  • 3% Bought for a combination of reasons
  • 1% Bought advertised property in a magazine or print ad
  • 1% Bought open house they saw
  • 1% For Sale by Owner

  Knowing these numbers and how buyers find your home among all the other homes on the market out there will enable you to make some wise decisions when it comes time to put your home on the market.

   Exposure and traffic sells homes! I sell homes, I do not just list them! 

Sutton Group Leads Sales

How to Get More Money For Your London Ontario Home

  Here’s an informative  guide  to  help  you  realize the  most  profit  from your London Ontario home,  and perhaps avoid  costly  repair  rip-offs.

There’s a little-known dynamic in real estate that can dramatically affect the successful, top dollar sale of your home.

The Elements That Motivate a Quicker Home Sale…

Are the Same Elements That Sell Homes for Top Dollar

      Each year thousands of homeowners needlessly lose thousands of dollars when selling their home.  But they don’t lose the money for reasons you might think. They lose money because they unknowingly left it on the table…for the buyer to pocket…by failing to recognize the hidden profit potential of their home.

And those hidden profits exist in two areas.

First, most homeowners never discover that certain small, even inexpensive repairs to their existing home could generate many times their cost in additional home value.  But on the other hand, other repairs and improvements can cost you dearly.  It’s critical to know what repairs and improvements to spend money on…and which ones to leave alone.

Second, when many savvy homeowners decide to make profitable repairs before selling, they expose themselves to the ruthless world of some contractors and their potentially deceptive schemes that drive up the costs of home repairs.Get More Money for your London Ontario Home

Between not knowing what to repair for maximum profit, and dealing with the world of contractor woes, it’s easy to understand how you might become overwhelmed with the whole process.  But don’t despair.

That’s Why I Created This Helpful Report

       I am going to reveal to you exactly what areas make sense to fix and what areas to leave alone…not using “opinion,” but real world facts.  Then, I’m going to give you a “behind the scenes tour” of the games some contractors play when fixing your home (by the way, not all contractors are sinister – I know many with stellar reputations).

This way you’ll be armed to the teeth with knowledge and strategies to stay one-step ahead of the game…and maximize the value of your home when you sell.

Many of the improvements that have the most value for you as a homeowner end up being the worst-performers as far as resale value is concerned.  ​

I will cover:

  • How to Select Home Improvements That Pay Dividends

  • Functional and Structural Improvements 
  • How to Dodge Repair Rip-Offs When Improving Your Home

  • Selecting Painters     

 

  • Selecting Plumbers

  • Selecting Electricians

  • Selecting Roofers

  • Selecting HVAC Specialists   

Here it is

Choosing a Real Estate Person to Sell A Home in London Ontario

           Our Core Values. Not All Realtors Are The Same!

It is both mine & the brokerage’s goal to consistently provide the highest quality, most innovative and exceptional real estate service available anywhere in the London and surrounding areas.

Our client’s needs always come first. We are not # 1, you are! We strive to always provide value far in excess of what other real estate sales representatives do. Our constant goal is mutual respect, and long term relationships that are beneficial to all parties.

We run a clean, organized, and efficient real estate brokerage.

We do not rest on our accomplishments. We constantly strive to create, develop, and implement new ideas, strategies, and services that will benefit our clients.  We endeavor to seek continuing education in all aspects of our business to increase the level of service we offer our clients.

Core Values

  • Brutal honesty at all times and in all situations.
  • Strategically driven, not market driven
  • Continually improve
  • Create and nurture a fun, exciting, creative and productive work environment.
  • Work with only the most enjoyable and motivated clients and co-workers.
  • When having the choice to being right or being kind, be kind

Sellers come to us because of our reputation for getting homes sold; buyers come to us because of our reputation of having desirable properties- many to choose from!

We are:

  • A firm that is known in the community to have a reputation for professionalism.
  • A firm that invests a considerable amount of time & money exposing real estate to attract qualified buyers.
  • A firm that can serve you and a buyer with hundreds of different financing sources to assure qualified buyers can obtain the funds to buy your property.
  • A firm that has at its fingertips a contact list of skilled trades, movers, cleaners & legal & financial professionals.
  • A firm that will screen possible buyers so only those who are qualified, that is, who can afford and have the money to buy your property. (See our Dedicated Buyer Program. We attract high end buyers daily!)
  • A firm that is not afraid to tell you the brutal truth and not just what you want to hear.
  • A firm that sells properties, not just lists them!
Sold

Sold by Ty Lacroix

To make sure Sutton Group Envelope Real Estate Brokerage is more than prepared when we work with a home seller, we always make sure we are 100% certain of what will lead to a timely sale for the best possible price before any property we represent even gets near the active London Real Estate market.

Those extra few days, effort and diligence we spend is to make sure it is being done right and saves home sellers weeks if not months of market time in the end and is worth every second of preparation it takes.

 First impressions are everything

A recent study has shown that over 94. 6% of all homes sold were viewed for the first time on the internet by the eventual buyer. This is an enormous change in a short time for the real estate industry and has literally made how well a real estate company in London “markets” a property their most important skill set.

At Sutton Group Envelope Real Estate we truly grasp that technology plays a huge role in the art of selling a home and we are always up on the latest technology, but at the same time, understanding that real estate is still a people business!

Courtesy, professionalism and good work habits are integral traits of a very good Realtor.

From virtual tours of your home from a buyer’s desk top or handheld device, we spare no expense to insure our listings are presented online in the best possible way. Along with our distinctive signage, social media, and blogging and on over 50 websites, your home is seen!

The pictures and other web based presentation tools are now truly the difference between a buyer seeing and potentially buying a home and a buyer simply deleting it from their search never to be considered again as a viable purchasing option.

We create a personal website for all of our listings so we can direct buyers to as much detail about our listings as possible.  When you go on to most real estate company’s websites to look at a particular home for sale, your home and every other agent’s home is shown as well. Who is competing with whom?

Buying a House London Ontario

There are always many homes for sale in London Ontario and making our listings stand out against our client’s competition is our most important role.

Market Based Pricing

When the initial list price for a property is too high for the current market, it guarantees that the property will be on the market for an extended period of time. A consequence of an extended time on the market is that potential buyers develop an unfavorable opinion of the home prior to even viewing it.

Rational or not, buyers often believe that there must be something wrong with a property if it has been listed on the market for a long period of time.

To avoid this, Envelope Real Estate Brokerage uses an exhaustive market based comparison approach to insure that your home is priced right from the start, allowing us to sell your property for the best possible price in the shortest time possible.

(Our research on your property, neighbourhood sales, and market data takes on average 3 hours which we invest before we even meet!)

At least, check us out, there’s more

How Buyers Find A House For Sale in London Ontario

HOW DO HOMES IN LONDON ONTARIO SELL?

How do London Ontario Houses sell?

How do homes sell?  It is the skill of creating sale-ability of a home.  Here are some statistics of how homes sell:

1%       of houses are sold from Open Houses.  This is only applicable if a thorough mailing to prospective buyers and proper advertising has been done.  Otherwise very few serious buyers go to Open Houses.

4%       of houses are sold through advertising in the newspaper or other real estate publications

6%       of homes are found by the buyer himself or the seller finding the buyer himself, A for Sale by Owner (FSBO)   in most of these cases, one party or the other hires a sales representative to handle the paperwork.

89%     of homes are sold through the Multiple Listing Service (MLS)  when listed with a real estate company – providing a reasonable price is offered.  Yet, some homes listed for sale do not sell or take quite a while to sell!.  This is where  knowledge and expertise is required to get a home sold for the highest price and quickly.

getting a better price for your house

89%     of homes that are sold through the Multiple Listing Service are sold by sales representatives who market for buyers daily!  Remember, real estate sales representatives sell real estate!

How many sales representatives actively look for buyers daily?  I don’t have any statistics on this, but according to the National Association of Realtors, 7% of the sales representatives are doing 93% of the total real estate business nationwide!  As an example, if you had 100 homes for sale, 7 sales representatives would sell 93 homes and 93 sales representatives would divide the sale of only 7 homes among themselves.

In today’s real estate market, IT IS THE SALES REPRESENTATIVE THAT MAKES THE DIFFERENCE IN GETTING YOUR HOME SOLD!

The size of a real estate company or its name has very little to do with the sale of your home or any other property.  Yes, there are some companies, which sell hundreds of homes, but they also have hundreds of sales representatives.  The average of sold homes per sales representative is usually very low.

Discounting commissions or making deals with sales representatives that you, too, can sell   the house will not change the facts of how homes are really sold.  Something important to keep in mind:

If the only way the sales representative can get the listing is by discounting commission, you can be sure they will also discount the price of your home when negotiating an offer on your home!

It will only take that much longer for you to realize that you have to do something else in order to sell your home.