Before buying a house or a condo in London, Ontario, the one single element that will determine how well you negotiate your offer is:
How MOTIVATED Is the Seller And How MOTIVATED Are YOU
Has the house been on the market for over 10 days? Is it because the seller is not 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?
If you’ve been transferred, have your home listed for sale, your lease is up, or 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!
Try To Avoid Emotional Attachment for 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 house, then you’re not going to do well when negotiating the purchase price. 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? Besides my phone number (I couldn’t resist), it’s the comparable sales and market data for the entire market and the area, plus the assessed values for five houses on each side of the house and ten across the street from the home you are interested in. Ask your Realtor to print out these for you to view.
Five 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 the average selling price compared to the listing price. You may notice that most houses in London are selling for the asking price or more. Take this into consideration when making your offer.
3. 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 a 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. Take a look at the average market times for listings in the area.
5. What is the percentage difference from assessed values to market price? (I have an excellent 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 are one of the essential steps in the buying process!