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5 Should Do’s Before Buying a Home in London Ontario

Before buying a house or buying a condo in London Ontario, the one single element that will determine how well you & your real estate representative negotiate your offer is…

How MOTIVATED Is the Seller And How MOTIVATED Are YOU?

negotiating to buy a house in London

If the house has been on the market for over a month, perhaps it’s because the seller hasn’t been motivated enough to sell.  Or perhaps by now, the house hasn’t sold and he/she is very motivated.  Or, they are fishing for a price, or; (in most cases) by the time they pay off their mortgage and other debts, there is no money left at a reduced price!

And if you’ve been transferred, have your home listed and you wish to downsize, or another child on the way and your house is too small, or your neighbourhood is a proctological pain, or you’ve had it with your landlord, you may be very motivated to buy!

Nevertheless, here’s a tip you must bring to any real estate transaction…

Avoid Emotional Attachment to the Home You’re Considering

If your heart is racing about the home, if you can’t hold back your emotions when thinking about the home, then you’re not going to do well when negotiating the purchase price. And, in some cases, money may not be the issue; it could be the layout, neighbourhood or perceived lifestyle.

What’s the single best piece of information you can have?

Other than my phone number, it’s the comparable sales and market data for the entire market and the area, plus the assessed values for 5 houses on each side of the house and 10 across the street from the house you are interested in. Ask your Realtor to print out these for you to view.  Now, here’s why…

 5 Musts Before Making an Offer on a House in London Ontario

1.    Take a look at the currently active (for sale) listings in the area.  Was the house you’re considering priced within reason to other homes?   If so, you know you’re at a reasonable starting point.

2.    Now, take a look at what the average selling price is compared to the listing price.  You may notice that most houses in London are selling for asking price or about 1-10% more than their offer price.  If that’s the case, you know the original offers were LESS than this amount.  Take this into consideration when making your offer.

3.    Now, make sure you visit several of the other listings in the area.  How does your choice compare to the others on the market?  Is the home you’re considering in similar shape?  Is it better sited?  Is it bigger, smaller, better style, better landscaping, etc.?  These factors will help you determine how much you should pay for your home vs. how much others paid for similar homes in the neighbourhood.

4.    Now, take a look at the average market times for listings in the area.  If they’re long (evaluated on a market by market basis), the market may be soft, and you might have more negotiating room with your offer.

5.    What is the percentage difference from assessed values to market price? (I have a great formula for this and have found over the years to be right on the money!)

You’re now ready to make your offer.  This is where strategies come into play and is one of the most important steps in the buying process and this is where most either overpay or not get the home they want because of poor negotiating ( see my 10 real estate negotiating musts)  and upset everyone or lose lots of sleep!

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Ty Lacroix

"Not All Realtors Are The Same"! This website and content are for you and designed and constantly upgraded with the latest real estate trends, how-to’s and what is for sale on MLS. All the so-called Gurus of marketing and branding say a Realtor and their Brokerage should have a bio to let people know about them. I have always felt bios were boasting, bragging, or trying to impress readers; I’ve always felt that our actions and results should impress and not be all talk and no action! As they say in Texas:” All hat and no cattle”! So here goes: We are a small brokerage by choice but mighty in results (over $103 million in transactions since 2014). Our primary source of business is guiding home buyers and sellers to make good decisions. We are transformational in nature and by choice, not transactional! We believe selling real estate is a process, not an event or knee-jerk reaction; we sleep well at night and ensure our clients do as well by systemizing the predictable and humanizing the exceptional ( the last seven words are plagiarism, I have copied this from the Four Seasons Hotels & Resorts)! We are not for everybody, nor can we please everybody, nor do we tell people what they want to hear; I know that may be old-fashioned and perhaps in this era of me-tooism, deservism and impersonal artificial intelligence (an oxymoron), calls on hold for hours or people being busy looking after their busyness that expectations may be jaded! If you would like to know more about the disadvantages of us helping you, contact me, Ty Lacroix, Owner and Broker of Record; however, the advantages are exposed on this site. About Ty Founder & Owner & Broker of Record of Sutton Group Envelope Real Estate Inc, That's all I can say about me! You see, this is about you, not me; you do not want to hear blah blah stuff about awards, designations, or that we walk old people across the street (I used to help old ladies cross the street, but as I got older I did not want my wife to think I was flirting) the reincarnation of Mother Teresa, walk on water or anything else to impress you. We let the numbers speak for themselves; you see, success leaves clues!

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