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!

Home Improvements To Sell a House in London Ontario

There are basically two ways to go about home improvements when selling a house in London Ontario.  You’re either going to splurge because it’s your home and you simply want a beautiful place to live, OR, you’re going to take a more logical, pragmatic approach designed to increase your home’s value.

Problem is, it is quite difficult to achieve both. Many homeowners expose themselves to the very problems they’re trying to avoid in the process of home fix-ups.

Take Carol and Tom Morehead, who seven years ago purchased a home for $390,000.  Since buying their home, they’ve spent over $60,000 fixing it up and making it the “perfect” place to live.  A few months ago, they put the home on the market with another brokerage at $519,000.

The best offer they received was only $477,000.

  Their mistake?  Spending money on amenities and features that did not add true value to the home and also, it was the highest priced home on the street. Because their house did not sell, they called me in to give some advice. (You now are reading what my advice was)

Just because you spend $30,000 or $60,000 on the fix-up of your home doesn’t mean you’re going to get it out when you sell.  It doesn’t automatically make your home worth $30,000 to $60,000 more.  And that’s exactly why you may want to know which fix-ups pay off big, and which ones could cost you potentially thousands of dollars.

Another house sold by Ty

Sold by Ty Lacroix

  A Possible Solution?

There is no question, getting the best dollar for your home is not as easy at it appears.  One poor move can cost you thousands. That’s why I  have created a proprietary system meant specifically for homeowners looking to increase the value of their home.  My Home Seller Fix-up report that will get you a great return on your renovation and if you do decide in the future to put your house or condo up for sale, I do what I call my ‘No Charge Home Audit’.

Getting ready to put your home on MLS should be thought out carefully and what you like, maybe most buyers will not.

Why guess? Why gamble?

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

Using an Appraisal To Sell or Buy a Property in London Ontario?

Have you ever had a feeling that the price of a property is too high? That you feel your home is worth more than what a Realtor says? That you and the buyer or seller cannot agree on price?

One of the tools I use is hiring an appraiser or two.

I went on a listing presentation a month ago and the price the seller wanted for her house ( she was told by her friends, neighbours, her dentist, even her niece who was a Realtor in the GTA what her house was worth) and the price I thought it would sell for was considerably less.

After going through all the discussions and neighbourhood values, she still did not want to list her house at my number but really wanted me to be her Realtor.

I said ok, but we would put 6 names of local appraiser’s names in a hat, she would reach in and pull out 2, and get two appraisals. We then would add the two, divide by two and that would be the range we would list her house for.

I even agreed to pay for the two appraisals.

Guess what?

Both appraisals were within a few thousand dollars of my price but considerably lower than the price her well meaning but misinformed circle of influence advised her.

We listed the house and it sold for my original price I thought it would sell for! A hero? Not necessarily but functional and practical.

I also used the same tactic between a buyer and a seller of a commercial property who were miles apart in price. We actually used 3 appraisals and add those up and divided by three!

So, in ending, there are many ways to consummate a sale and see the article below, it may help as well.

The following article was written by the  Appraisal Institute of Canada (AIC) and will validate what I believe can be another solution to help buyers and sellers of real estate in London Ontario.

Real estate bidding wars are now the new norm in the over-heated Toronto and Vancouver property markets. Sales can end up hundreds of thousands of dollars above asking prices.

It’s a bonanza for sellers, with head-spinning multiple offers giving them a tidy sum of extra cash. For buyers, the process of finding a home is frenzied and emotional. If you are the REALTOR® caught in the middle, you may need an unbiased independent opinion to ensure that all involved have the information and research they need to make the best decision possible.

Market volatility is a concern for the Appraisal Institute of Canada (AIC) which is why the organization is encouraging REALTORS® to engage professional appraisers to get unbiased, independent opinions of property values to help them advise their clients.

“The more information you have in your hand, the better off you’re going to be,” says Keith Lancastle, chief executive officer of AIC, a self-regulating organization that has more than 5,000 members across Canada with Accredited Appraiser Canadian Institute (AACI) and Canadian Residential Appraiser (CRA) designations. “It’s prudent to help your clients make one of the most important investments in their lifetime with both eyes open.”

AIC members perform approximately 1 million residential appraisals in Canada of properties worth a total of more than $500 billion, and this amount is increasing every year. The majority of residential appraisals are completed for lenders for the purpose of mortgage financing. The lender wants to ensure the value of the collateral and that the Loan–to-Value ratio meets their guidelines. Mr. Lancastle says. “If your client buys a piece of property that is higher than the appraised value, it is important to remember that the lender will not underwrite the loan on that emotion.”

Dan Brewer, AACI, P.App president of AIC and a senior appraiser at Appraisers Canada Inc. in booming York Region north of Toronto, says that under guidelines set out by the Office of the Superintendent of Financial Institutions, on-site appraisals are required to ensure that buyers do not borrow an amount larger than a property’s value.

“You can’t finance your dreams,” Mr. Brewer comments, noting that much of the escalation in homes price in Toronto and Vancouver comes from a lack of inventory, time pressures and the fact that buyers and sellers are often “making decisions without knowing all the facts.” Bidding wars skew market values, and those who pay “out of whack” prices should be prepared to “pull a lot of money out of their jeans” and to consider whether they can recover that amount if they sell, he notes. “Cost is not synonymous with value.”

AIC-designated appraisers undertake comprehensive curriculum, experience and examination requirements and are experts in estimating the value of a property; real estate agents are experts in selling and purchasing property and home inspectors determine a property’s structural integrity, Mr. Brewer explains. An appraisal report helps property owners better understand a market’s sales and listing history, the exposure time to sell a property, supply and demand for similar properties, structural characteristics, assessment data, title restrictions, zoning and land-use controls.

“You’re interpreting the marketplace,” says Mr. Brewer, noting that qualified appraisers “are an integral part of the process,” helping homeowners do everything from understanding their equity positions to evaluating the value of particular upgrades they opt for. “We quantify those things, we monitor them, we measure them, we give guidance and direction.”

Mr. Lancastle says that in a larger sense, appraisals ensure that there are true values in the marketplace. “We are protecting everyone involved in the real estate transaction including the REALTOR®, the financial system and Canadian consumers.” He adds that AIC members also do appraisals for purposes such as estate planning, property tax assessments, mortgage refinancing and to help homeowners plan for and follow up after renovations.