London ON Real estate can be difficult to understand. First and foremost, we're talking about a large sum of your hard-earned and hard-saved money. Second, a variety of factors, including economics, politics, and others, can influence the trajectory of the London ON real estate housing market. It is critical that homebuyers and sellers assemble a knowledgeable team of professionals to assist them in answering all of the inevitable questions. Meanwhile, here are some interesting London ON real estate facts!
Common Perceptions on London ON Real Estate
You should wait until spring to list your home: FALSE
While spring marks the start of the busy London ON real estate season, it is far from over by the time fall arrives. In fact, many buyers who did not purchase a home during the spring or summer are very motivated to do so before the snow falls, which could result in a faster sale or a higher price!
London ON Real estate is seasonal: FALSE
To those who believe there is a right and wrong time to buy or sell a home, there isn't. Prices are more affected by factors such as supply and demand, which differ between cities and neighbourhoods. Rather than considering the season, consider the number of days on the market as the best indicator of your negotiating power.
Listing at a higher price leaves more negotiating room: FALSE
If you overprice your home, many potential buyers will never see it. Most homebuyers nowadays begin their search for a home online, filtering by region, housing type, and, most importantly, price! In fact, according to a recent RE/MAX survey, the most important factor when shopping for real estate is price. This emphasizes the importance of conducting research and obtaining comparables when determining your listing price.
A good credit score means a better interest rate: TRUE
Your credit score is an indicator of your financial well-being. Your rating, according to the Government of Canada, indicates the risk you represent to lenders when compared to other consumers. Credit-reporting agencies such as Equifax and TransUnion assess your financial health on a scale of 300 to 900. High scores are good news, and they usually result in a lower mortgage rate because you pose less risk.
The house price is the only cost you need to worry about: FALSE
While the purchase price is the primary consideration for the majority of homebuyers, closing costs can add anywhere from 1.5 to 4% to the home's price. Budget for legal and administrative fees, a home inspection, mortgage default insurance if the down payment is less than 20% of the purchase price, a Land Transfer Tax, a property tax, an appraisal fee, home insurance, moving costs, and other expenses.
You can buy a home with zero down: TRUE
While the purchase price is the primary consideration for the majority of homebuyers, closing costs can add anywhere from 1.5 to 4% to the home's price. Budget for legal and administrative fees, a home inspection, mortgage default insurance if the down payment is less than 20% of the purchase price, a Land Transfer Tax, a property tax, an appraisal fee, home insurance, moving costs, and other expenses.
Mortgage insurance protects you should something happen to you: FALSE
Contrary to popular belief, mortgage loan insurance protects the lender, not the borrower, against payment defaults. If your down payment is less than 20% of the purchase price, you must purchase mortgage default insurance, which can be paid in full up front or added to your mortgage payments.
Work with a trusted team of real estate professionals to dispel some of those real estate myths and make your dream home a reality.
Looking for London ON Real Estate? Search MLS listings today to find you next dream home. Contact Realtown owner Yasir Khan, Sales Representative at RE/MAX.
