Why buying a house in London goes wrong — and how to avoid it
Five things make a London purchase go wrong. Losing on offers, financing that falls through, an inspection surprise, the wrong neighbourhood, or closing costs nobody warned you about.
You might be worried you will overpay, or find a problem after the keys are yours. Here is what to watch for, and what protects you if it happens anyway.
The Bottom Line (Quick Answer)
- With the Ken Small Real Estate Team in London, Ontario, you plan for all five problems before you shop.
- Buying with the team starts with a $495 retainer. The 3% commission is paid from the seller’s side of the deal.
- Any home you buy with the Ken Small Team comes with a 1-Year Canadian Home Shield SafeClose™ Warranty. It also carries the Love Your New Home Guarantee. If within 24 months it isn’t right, we list it for free: 0% listing-side commission. That applies when you buy your next home with us, one of equal or greater value.
The short version
- Offer on numbers, not the asking price, and get properly pre-approved first.
- Get a proper inspection every time, and weigh the area before the house.
- See the full number, closing costs included, before you shop.
1. Why do you keep losing on offers in London?
In a tight London pocket, a good home can draw several offers. Some buyers write blind. They have no read on the seller and no plan on price or conditions. They get beaten by buyers who have one.
The fix: an Offer Confidence Brief before you write. It covers recent comparable sales, the home’s condition and your walk-away line. You offer on numbers, not the asking price, and you make the final call. See how we help you buy →
2. Why does financing fall through?
A pre-approval is not final approval. Buyers get caught when the lender re-checks income, or the appraisal comes in low. Or they change jobs, or take on debt, mid-search.
The fix: get properly pre-approved with a real broker. Keep your finances still until closing. And keep a financing condition on your offer wherever the market lets you.
You get brokers who confirm the real number, not a hopeful one.
3. What if the inspection turns up a nasty surprise?
London has lots of older homes. Knob-and-tube wiring, old furnaces, and foundation or water problems can hide behind fresh paint. Watch for these in Old North and Old South especially. A skipped or rushed inspection is how you inherit someone else’s problem.
The fix: a proper inspection every time. The team coordinates it. Where it fits, look at a Certified Pre-Owned Home. The seller has it pre-inspected, so you see the condition before you offer.
The whole deal, in plain English: the pre-inspection summary is for informational purposes only; it neither encourages nor discourages the buyer from arranging their own inspection.
4. How do you avoid buying in the wrong neighbourhood?
The house checks every box, but the location does not. The commute is long, the schools are wrong for your kids, or resale is soft. You feel it after you move, when it is expensive to fix.
The fix: weigh the area before the house. The London neighbourhood guides tell you who each area is not for, not just the upside.
5. What closing costs catch London buyers out?
Your down payment is not the whole bill. Land transfer tax, legal fees, title insurance and adjustments come on top. So does mortgage insurance, if you put less than 20% down. London adds no city land transfer tax; only Toronto does.
A trap for first-time buyers. Ontario and Canada each use their own rule:
Ontario runs the land transfer tax refund, up to $4,000. Its rule, word for word:
“The purchaser cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, at any time.” — Ontario.ca (opens in a new tab)
Canada runs the home buyers’ amount on your tax return. Its rule, word for word:
You “did not live in another home inside or outside Canada that you (or your spouse or common-law partner) owned in the year of acquisition or in any of the four preceding years.” — Canada.ca (opens in a new tab)
Say you owned a condo years ago, sold it, and have rented since. Canada may still count you as a first-time buyer. Ontario does not.
The fix: see the full number before you shop. Run the Buyer Closing-Cost Calculator, or read what it costs to buy a house in London.
What if you find a problem after you buy the house?
Found a hidden problem the seller knew about? RECO says a seller must disclose latent defects. A latent defect makes a home unsafe or unfit to live in, and a careful look would not find it. Read RECO Bulletin 7.4 (opens in a new tab), then talk to a real estate lawyer about your options.
If you bought with the Ken Small Team, two things protect you. A 1-Year Canadian Home Shield SafeClose™ Warranty covers the breakdown of major appliances and systems. It gives up to $15,000 of protection, with a $100 deductible.
What does it cost to buy a home with us?
A $495 retainer to start. It puts the whole team on your search from day one. The commission is 3%, paid from the seller’s side of the deal.
Each seller decides what they offer the buyer’s brokerage. Before you write an offer, you see that seller’s number. If it is less than 3%, you do not pay the difference.
See every line on what it costs to buy with us.
So how do you avoid all five?
Not by luck. By a process built to catch each one before it costs you. Pre-approval discipline. A read on every home and area. A real inspection. The true costs up front. And a plan for every offer.
Who this is not for
If you want an agent who opens doors and stays quiet, we’re probably not your team. We push back on a bad house. We run the numbers out loud. And we will talk you out of a home that is wrong for you.
What London buyers say about working with us
★★★★★All the way from the start of the house search, Ken was there to help at every step. From setting up search criteria that exactly met our needs, to getting viewings scheduled, to providing honest feedback about the properties (which is often rare for most agents); Ken went above and beyond our expectations. 10/10 experience with Ken.
J H · Buyer · Apr 2023 · via Google
All testimonials and Google reviews are verified, unedited statements from actual past clients of the Ken Small Team.
4.9 average from 14 Google reviews, as shown on our reviews page (October 2026). Read them all on the reviews page.
The honest takeaway
The goal is not just to get you a home. It is to keep you from the five mistakes that make buyers regret one.
Common questions about buying problems in London
Why do I keep losing on offers in London?
What is the most common reason a home purchase falls apart?
Should I always get a home inspection in London?
How do I avoid buying in the wrong neighbourhood?
What should I look for when buying a house in Ontario?
What closing costs surprise London buyers the most?
What if I find a problem with the house after I buy it?
What does it cost to buy a house with the Ken Small Team?
Want to buy without the surprises?
Bring Ken where you are, just starting or losing on offers. A 15-minute call, no obligation. You leave with a plan for all five.
Fire us any time before you make an offer. Only the $495 retainer stays with us, because that work is done.
About Ken Small
Ken Small, REALTOR®, has been a real estate agent in London since 2003. He leads the Ken Small Real Estate Team at Century 21 First Canadian Corp., Brokerage. The office is at 420 York Street, London, ON N6B 1R1. RECO #4727293. Meet the team →