When buying 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?
If the condo has been on the market for over 25 days, perhaps it’s because the seller hasn’t been motivated enough or, maybe now they are very motivated to sell.
And if you’ve been transferred, have your home listed or your spouse kicked you out or you left, or you’ve had it with your landlord, YOU may be very motivated to buy!
Nevertheless, here’s a tip to bring to any real estate transaction…
Move Heaven and Earth to AVOID Emotional Attachment To the Home You’re Considering
If you’re all giddy about the condo, if you can’t hold back your emotions when around the condo, then you’re going to get clobbered when negotiating the purchase.
So let’s say you have a REALTOR® representing you (make sure it’s a BUYER’S agent, or you could lose a bundle!), and you’re ready to write an offer.
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. Ask your REALTOR® to print out both for you to use. Now, here’s what you want to do…
You want to take a look at FOUR important “market telltale signs:”
- Now, take a look at what the average selling price is compared to the listing price. You may notice that most condos in London are selling for about 2-4% less 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.
- 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 unit 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 condo vs. how much others paid for similar condos in the neighborhood.
- Now, take a look at the average market times for condos 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.
- What is the ratio of owners versus investors in the building or complex?
You’re now ready to make your offer. What about strategies such as: 1) should you offer a high price and ask the owner to throw in all kinds of extras, or 2) offer a low price and skim your way into the neighborhood?
The correct answer depends on your personal situation. And you need to work closely with someone with the skill set and experience to strategize your offer.