St.Thomas Ontario Real Estate Not All Realtors Are The Same
St.Thomas Real Estate Market in August 2019 a Sellers Market
St. Thomas, which is still very much a Sellers’ Market with the sales-to-new listings ratio was higher than in London – 78.9% versus 69.6% – which means that the existing market conditions in the Railway City favour home sellers. The inventory (homes for sale) continues to be very low in St. Thomas, while the average home sale price sits at an all-time high of $342,134, up 15.87 % from August 2018.
According to the August 2019 reports by the Canadian Real Estate Association (CREA), in London, the median number of days on the market (to sell) was 14. In Elgin County 26, in Middlesex County 15, while in St. Thomas 13 and Strathroy, it was 14.
|Area||August Average Sale Price|
From January 1 to November 2, 2019, 650 houses in St. Thomas sold through MLS, from $100,000 to $675,000, averaging two days to sell for 101.06% of the asking price! Twenty-two condo apartments and townhouses sold in the same period, from $238,000 to $580,000 for 100.27% of the asking price and taking 31 days on the market to sell.
Buying a House in St. Thomas Ontario
What would it mean to you that before, during and after you bought a house in St.Thomas Ontario, you knew that the price was right, the location and the condition of the home were right?
Most house buyers only think about price, style and location. But there’s more than that!
For most, buying a house in St.Thomas & area can be an emotional roller coaster! It comes with a myriad of details and some buyers, or even their Realtor, can get caught up in the excitement and tend to overlook a few things.
Over the years, through experience in working with hundreds of buyers and sellers, we have been able to help clients avoid some of these most common overlooked details below:
- Making an offer without taking the time to gather sufficient information to make a prudent decision.
- So confused and can’t make a decision or discouraged with what is available for sale or the price or being outbid!
- Rushing into buying and then finding out the home they selected did not fit their lifestyle or comfort zone
- Unexpected repairs because of not doing a home inspection or, worse yet, not hiring the best home inspectors in the market.
- Hidden costs that were not budgeted for because of lack of thoroughness on your part or the professionals you hired.
- Not understanding the whole process of buying real estate, the time of being unavailable and not being in the presence from start to finish.
- Listening to the wrong advice, though from parents, friends, neighbours, & co-workers who mean well, from social media or the latest local news.
The buying process should uncover the following:
- How To Evaluate Homes Like a Pro.
- What to Look For When You Visit a Home For Sale.
- What is the Real Price and The Market Price?
- How To Know When Someone is Not Telling You The Truth in a Real Estate Transaction.
- How to Save Thousands of Dollars When Writing & Negotiating an Offer.
- What Are The FOUR Most important “Market Telltale Signs” You Must Know & Understand Before You Make an Offer?
In a 2017 Consumer Real Estate Survey, 77.8% of Canadians responded that they either paid too much for their house or made a huge mistake somewhere in the buying process!
If you are going to spend hundreds of thousands of dollars on a home in St.Thomas Ontario, regardless if you are a first-time buyer or buying your 5th, a few minutes of informed insights will be well worth your time.
A Few Secret Tips When Selling Your Home in St. Thomas Ontario
A home without a buyer has no value in the market place. Sure it might have a value to you the seller, and it might have a benefit to your banker and your insurance agent and your appraiser. But none of these people are buyers.
So here is the secret to pricing your home to sell – It’s not what you think the home is worth that matters, it’s what a reasonable buyer will consider your home is worth that will ultimately determine if your home will sell.
Now you may be thinking – Hey wait, if I left it up to a buyer, they would pay me as little as possible for my home. True, they would. But in the real world, every buyer knows that you, the seller, have no obligation to sell your home at any price. To purchase your home, the buyer will have to make you an offer you can’t or won’t refuse.
But here-in lies the trap that many sellers fall into (I did when I first started in the real estate business), which is the mistaken idea that we can hold out for an inflated price and eventually, the market will come to us.
Buyers are under no obligation to buy any particular home, and no amount of marketing, open houses, websites, or signage will motivate a buyer to purchase an overpriced home.
Because they can buy one of your neighbours’ homes for less! This reveals one of the essential considerations in pricing your home – Price VS Time.
Understanding Price VS Time
The age-old dilemma that has faced buyers and sellers since the dawn of private property rights is a simple question:
What is more important, price or time?
Believe it or not, this puzzle underlies and controls every seller’s decision to sell, and every buyer needs to complete a purchase. For sellers, this boils down to the need to sell within a set time frame or instead to hold out for the best possible price, and as you might guess, for buyers it’s the need to buy within a set time frame or to purchase a home for the lowest possible price.
A seller who would like to sell for top dollar should be prepared to potentially wait longer for a buyer willing to pay a premium price. Like trying to sell ice during December, a seller might have to give the stuff away to get rid of it, but if they wait long enough, say until mid-August when temperatures crest over 100 degrees suddenly that same ice can have real value. On the flip side, a seller who needs to sell quickly, and doesn’t have time to wait, should expect to discount their price somewhat because of the limited time they have to expose their home to the market.
What’s the difference?
Buyers are in the same boat. A buyer who has the luxury of shopping for a home over a long period can probably wait to find a bargain, while another buyer who must buy a home in the next few weeks will probably be willing to pay a premium. Again it boils down to price vs. time. So you might ask yourself what is your highest priority – Selling quickly or selling for a higher price?
When I pose this question to my clients, the answer – I want both! The funny thing is that they aren’t kidding!
Quite a few home sellers want their cake with icing on top. Because of this, many homeowners will attempt to put the responsibility of getting both top dollar and fast sale on the back of their hired gun, the real estate agent. The result can be summed up in one word – frustration. Why? Because no matter how much a seller yells, screams and kicks a real estate agent, they don’t do miracles.
This is why successful sellers understand that while real estate agents’ job is to provide marketing, expert advice, and negotiating services, in the end, they don’t own the property. They don’t make the final decisions on pricing. The seller does, and ultimately the seller’s asking price will, in large part, determine how slowly or quickly the home will sell.
Successful sellers have learned that to price their home accurately means they need to think like a buyer; they need to get inside a buyers skin and look at the world through buyers eyes if you’re like most buyers you would probably start online by viewing listings to get a general feel for local home prices.
As a typical internet empowered real estate buyer, you will look at an average of nine homes over 1-2 weeks with the assistance of a real estate professional. By the end of your journey, like many buyers, you become so knowledgeable about the market that by the last showing you can guess, with reasonable accuracy, each home listing price before your agent can even tell you.
So what happened here? As a buyer, you went from a blank slate, with no impression of the market to having the ability to predict listing prices. A big leap, sure, but this description is exactly what most buyers’ experience.
So as you can see, pricing to sell your home is not the price your neighbour suggests, or a friend of a friend, or to recoup your costs of a poor renovation or upgrades.
Remember, “if the price ain’t compelling, the house ain’t selling!”
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