Selling a Condo in London Ontario
Even though we are in a Seller’s market, when you’re getting ready to put your condo for sale on MLS in London, Ontario, there are some things to think about, to prepare for, and to organize.
- Most buyers select homes based on EMOTIONS. Once their decision is made to buy, they justify their purchase with LOGICAL reasons: facts and features. So, it’s most important to make your condo appeal to all senses. Your property is NOT the only condo the buyers will see. You are competing with other condos in the market.
- Every seller wants to realize as much money as possible when selling their condo. The natural inclination is to price high, thinking you can always come down in the future. With most condo listings getting multiple offers, why hurt your chances?
- Buyers have a lot more information than you think, plus, their Realtor knows prices as well, so, when a buyer is looking for condos in your price range, they or their Realtor may reject showing your condo in favour of other condos in a more reasonable price range.
- For goodness sake, allow your place to be shown to buyers! Do you know how many condo listings have restrictive times, like 1-2 on Tuesdays or Thursdays or no showings if it’s raining, if it’s sunny & my favourite, (true story!), “You can’t show it today because the seller doesn’t feel like cleaning up today!)
We Sell Condos; We Do Not Just List Them, a Huge Difference!
We market and sell hundreds of condos in London, Ontario & area & we accomplish this first by doing a supply/demand analysis in the immediate area for any house or condo that requires marketing.
Most Realtors have access to market information; it is the valuation and experience of what that information means to the marketing of a home that matters. Plus, we have invested in some special software that allows us to acquire ALL the pertinent information to give our clients the facts, even if the harsh reality of the market.
Then we market the property through our multiple websites, blogs, social media, cooperation with 1653 local Realtors and thousands of associated Realtors across Canada and the US.
All actions have consequences! Multiple actions gets multiple results!
Opinions can be costly, especially for real estate, so we double and triple-check our numbers to be able to give our clients the best possible accurate advice.
Real Estate Fact: The Seller Is Solely Responsible For How Much, and How Quickly Their Home Sells!
I know, a bold statement but from selling 100’s of homes in London, Ontario and area, it is the brutal truth. One of our principles is to guide clients to make good decisions. The way we found to do that is to be upfront with all facts, not sugar coat anything and not make false promises or make unrealistic assumptions.
Our systematic approach is not for everyone and that we get, but we sure enjoy helping those who grasp reality and appreciate systems over those who wing it!
HOME EVALUATIONS THE EASY WAY
Once you provide the property information we will:
- Present the evaluation to you in person
- Go through all the recent sales in your area
- Compare your home to those that were sold or listed in the area
- Provide you with a very accurate range your home will sell for
- There is no cost or obligation for this valuable service.
Your Condo Is For Sale Yet Few Are Aware It Is
One of the biggest downfalls I see in marketing when a London Ontario home for sale, be it through a real estate brokerage or a For Sale by Owner (FSBO) company is that most marketers & Realtors think that if they do the following:
- Put a for sale sign out front or in the window
- Get it on MLS or some websites
- Take pretty pictures (or doctor them)
- Make up some fancy brochures
- Maybe run an ad in a glossy magazine that is one month too late or a newspaper ad ( called tombstone ads for a reason) or, a more massive ad with the Realtor’s picture larger than home!
- Do An Open House (did you know that less than 1% of houses sell with an open house?)
Who is going to buy your condo? Marketing to that group, in other words, focusing on the type of buyer your home will attract, is beneficial and works!
For example, if you have a four-bedroom, two-car garage house which is close to good schools, of course, you would market to families, not to an empty nester or single person. Or, a one floor, two-bedroom condo in an upscale neighbourhood of London, you would not market it to a family of 4!
Focus, narrow down, focus, focus, & clarify!
Most homebuyers view between 10-16 homes in London, Ontario; they are very much aware of the price & condition of other homes similar to yours. If they have a top-notch Realtor helping them, they can laser focus on the house that fits their client’s budget and criteria and not get lost on the bling and shine on properties that do not match their client’s profile.
You can have the fanciest billboard in the world, but if it’s located in the middle of the Sahara desert, who is going to see it, and if they did, how many miles and hours will it take to get to London Ontario to see it? (I googled it, 9519 KM)
Why not focus your condo on that buyer?
Pricing Strategies For Condos, Some Tips
When Deciding On a Selling Price For Your Townhouse or Apartment Condo, Here Are a Few Things That Go On That You May Not Be Aware Occurs!
Meeting with a Realtor
You have decided to sell your home and have a relatively good idea of what you think it is worth. Being a sensible home seller, you schedule appointments with three local real estate representatives, (or a friend of a friend who has a friend). They set up a time with you and maybe arrive with a “Competitive Market Analysis” (which no longer is an accurate tool, I’ll cover that in another report), and they each recommend a specific sales price.
Amazingly, two of the Realtors have suggested prices that are lower than what you expected. Even though they have backed up their recommendations with recent sales data of similar homes, you remain convinced your property is worth more.
When you interview the third Realtor’s figures, his or her numbers are much more in line with what you think your home is worth. Or they may have even suggested to you a higher price. Wow! Now you are happy and an excited prospective home seller, perhaps already counting the money.
A Sales Practice Called “Buying a Listing”
If you are like most people, you have chosen Realtor number three. Realtor # 3 seems willing to listen to your input and work with you. A Realtor that cares about putting the most money in your pocket. A Realtor that is willing to start at your price and if you need to drop the price later, you can do that easily, right?
After all, everyone else does it! Wrong!
The truth is that you may have just met a Realtor engaging in a questionable sales practise called “buying a listing.” He/she “bought” the listing by suggesting you might be able to get a higher sales price than the other Realtors recommended. Most likely, he or she is quite doubtful that your home will sell at that price. The intention from the beginning is to talk you into lowering the price eventually.
Why do some “buy” listings this way?
There are two reasons: A well-meaning and hardworking Realtor can feel pressure from a homeowner who has an inflated perception of their home’s value. On the other hand, there are some who engage in this practice routinely.
If you start with a price that is too high, there is a likelihood you interviewed other Realtors. They did not get the listing, of course. They got “beaten” out by someone telling you what you wanted to hear.
If your listing Realtor routinely engages in “buying “listings, he/she has probably has done this to other Realtors in the same way. Word gets around that their homes are overpriced, and the home seller has an inflated value in mind. Very difficult to resolve.
In short, you may have ended up with a Realtor who was good at selling you, but not good at selling your home. And you are willing to pay them a fee for it?
It is human nature for you to want the highest price for your home. However, when you choose the Realtor who promises what you want to hear, it often leads to stress and frustration. Most of the time, it will take you longer to sell your home. Possibly, and this happens, you will end up selling at a lower price instead.
Or maybe as a result of reading this, you will choose one of the “good” Realtors in the first place. They are out there, you know!
What Happens Behind the Scenes?
If you start with too high a price on your home, you may have added to your stress level—and selling a home is stressful enough! There will be a lot of “behind the scenes” action taking place that you don’t know. Contrary to popular opinion, a professional listing Realtor does not usually attempt to sell your home directly to a homebuyer. That would be inefficient.
Pro’s market and promote your home to hundreds of other local Realtors and even Realtors from the GTA areas who do work with homebuyers, dramatically increasing your personal sales force. During the first couple of weeks, your home should be a flurry of activity with buyer’s agents coming to preview your home so they can sell it to their clients. (See my report “When is the most crucial time for a new listing)
If The Price Is Right
If you and your Realtor have overpriced, fewer Realtors will preview your home. After all, they are Realtors, and it should be their job to know local market conditions and home values. If your property is dramatically above the market, why waste time? Their time is spent previewing homes that are priced realistically.
Dropping Your Price Too Late
If you start with a high sales price, then reduce it later—your property is “old news.” You will never be able to recapture that flurry of initial activity you would have had a realistic price. Your property could take longer to sell.
Even if you do successfully sell at an above market price to an uninformed buyer, your buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable sales for the last six months and current market conditions do not support your sales price, the property won’t appraise. Your deal falls apart. Of course, you can always attempt to negotiate the price, but only if the buyer is willing to listen.
Your property then goes “back on the market.” Other Realtors will know this, as will their buyers, what do you think their response will be to your home?
Once your home sits on the market awhile, it is harder to get a good offer. Potential buyers will think that you might be getting desperate so that they will make low offers. By overpricing your home in the beginning, you could end up settling for a lower price than you would have usually received.
In summary, when you decide to sell your property, why not work with someone who knows the market and is financially and emotionally stable enough to guide you? Who will not tell you what you want to hear? The truth hurts but you might as well listen to it now than three months later!
To get results, pay the price once and only cry once or pay the price later and cry for several years!