A Word or Two About Home Inspections

Here’s another post taken from my ‘News You Can Use’ Preferred Client publication. ____________________________________________________________________________________

Buyers are often tempted to cut corners on things like home inspections to save money for fun items like new furniture or a big-screen television. Don’t! A home inspection is one of the best investments you can make when purchasing a home.

Plan and Prepare Think of a home inspection as a fact-finding mission. Having a complete and independent home inspection performed is an important step toward finding out everything there is to know about the property. Hidden home defects often become apparent, including poorly performed repairs, forgotten faults, structural damage, or other potential pitfalls that could transform your dream home into a nightmare.

Save Money Almost every property has a few defects – even new homes – and buyers are often surprised how seemingly insignificant items can add hundreds or even thousands of dollars to the price of a home after the fact. Having an independent inspection performed often saves more money than it costs since you can often have the sellers remedy the problem(s) or renegotiate the price based upon the new information. Remember, once a latent/ hidden defect is known the sellers are legally bound to disclose it to all prospective buyers.

Negotiate Motivated sellers may not have the time or interest to fix all the problems on a property. If you have more time than money, a home inspection provides a strong rationale to renegotiate the purchase price or work out other alternatives while the home is being repaired or renovated.

Most of my Clients take my recommendation and use Rick Varadi of Key Home Inspections.

As with everything when purchasing your new home, it is important to have your REALTOR® guide you through the process following a home inspection. This is especially true if a number of defects have been identified.

///…CP

BMO Home Buying Seminar

I met with a couple of my mortgage broker contacts at BMO today and one of the things we discussed was an upcoming home buying seminar they are hosting and sponsoring.

The event is being held on February 23, 2009 from 6:30 pm to 9:30 pm at the Mayfield Inn (16615 – 109 Avenue)

The seminar will provide an opportunity for home buyers to learn about things to consider when buying a home, receive useful reference material, talk to industry experts, and visit information booths.

BMO has also set up a lottery for a chance for one person to win $10,000 cash for a down payment.

Click here or the image at right to download the poster in PDF format.

The event is free and you can request your free ticket(s) by contacting Nancy Richmond at BMO.

See you there!

///…CP

Renovations at REALTOR.ca

By now everybody knows the old MLS.ca became REALTOR.ca back in July 2008 and in the roughly six months since the change, I have received a number ‘complaints’ and comments from people unhappy with the new and improved site. Many of the unsatisfied users indicated they did not like the new navigation and missed some of the navigation features of the old system.

Clearly The Canadian Real Estate Association (which operates and maintains the site on behalf of REALTORS® across Canada) got the message from consumers as well. Presumably in an effort to address some of the ‘issues’, the folks at CREA implemented a number of enhancements to REALTOR.ca recently:

• Introduction of Gallery View display This allows users to view up to 12 property photos at a time, covering up the interactive map. The button to use this option appears at the upper right of the map page, above the existing column showing thumbnail information.
• Introduction of Thumbnail View display This view provides 12 property photos at a time with property description and links to other features such as multimedia. It is accessed by a button at the upper right of the map page.
• Enhanced positioning for ‘Save Search’  The ‘Save Search’ was moved to the upper left, above the ‘Refine’ column on the map page. This makes it more evident consumers can save their search criteria, making it easier for returning visitors to search based on their initial criteria.
• Technical and Browser issues Issues where some MLS® number searches would not execute have been fixed. Also, the site is now more compatible for users of Firefox Version 3.

Feel free to let me know what you think or better yet, email CREA. Happy home surfing!

///…CP

Is A Condo Or Townhome Right For You?

Here’s another post taken from my ‘News You Can Use’ Preferred Client publication.

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Buyers from many walks of life continue to discover the advantages of condo and/ or townhome living. Whether you’re a first-time buyer looking for an affordable way to own a home, a busy professional with little time to devote to home maintenance, or an empty-nester looking to “right-size”, a condo or townhome may be a good choice for you.

Some Advantages: Owning a condo or townhome is very low maintenance – the landscaping and snow removal, exterior maintenance, and maintenance of the common areas is typically handled by the condo association. This is attractive if you’re not ‘handy’ or if you have a busy lifestyle that doesn’t leave much time for these chores. In addition, some communities offer amenities such as pools, tennis courts, fitness facilities, and walking trails, which are not typically available with most detached homes. The proximity of neighbours gives many owners a greater sense of security and allows them to just “lock-and-leave” when they want to get away.

Some Disadvantages: Condo fees add to your monthly expenses and can rise in the future as maintenance and repair costs go up. Certain covenants and bylaws may restrict the way you can use, improve, or otherwise enjoy your home (e.g. pet restrictions, no barbeques on balconies). There is often less storage space than in a detached home. As much as it is a positive for some, the proximity of neighbours can be a disadvantage for others. Available parking for guests may be limited.

As always, consider the potential for resale before purchasing any home. Always get the most up-to-date market data relevant to your potential purchase and ask other owners to give you the “scoop” on what its really like to live in the building or complex you are considering for your next home.

///…CP

Behaviour When Waiting For Your New Home.

Back at the end of September I wrote a post entitled: “Behaviour When Shopping For A New Home”. The post was based on a then recent experience and was intended to shed some light on what was acceptable behaviour when you’re in someone else’s home. This is the second (and final) post based upon the same experience and deals with acceptable behaviour once you have made the deal on your new home, have removed all your Buyers’ conditions, and are awaiting possession of your new home.

Probably the most important thing to consider when waiting to take possession of your new home is ‘Do Not Disturb’. The people from whom you have purchased your new home still own it! That’s right — you have no business lurking around their home, no business knocking on their door, and certainly no business trying to gain entry to their home.

The people selling are not your friends (usually). The people selling are not looking after your home. It’s their home and they too have a million-and-one things to complete. They’re moving too, remember?

Sure it’s okay to drive by the home that will soon be yours. It’s even okay to go for a walk in your soon-to-be new neighbourhood. You’re excited; that’s normal. What’s not normal is stalking the current owners.

Under certain circumstances it may be acceptable to contact the sellers to seek permission to drop by — but you absolutely do not contact the sellers directly. Let’s say you just realized you forgot to take measurements for some new window coverings and you need the measurements to place an order. Now what? Contact your REALTOR® and ask him or her to contact the sellers’ REALTOR® to see if it would be okay to stop by and take measurements. If the sellers say ‘yes’ then have the two REALTORS® schedule an appointment for you and make sure you go with your REALTOR®.

Again, it should be common sense — especially if you’ve given it any thought at all.

///…CP

Apparently Size Really Does Matter

At least that’s what an appeals court in Texas has ruled. To summarize: buyers successfully sued the real estate professionals involved in their purchase because the home they bought (and moved into) is actually 253 square feet smaller than was indicated on the feature sheet and online. The jury awarded the purchasers damages and held the real estate professionals liable for misrepresentation and fraud.

You can read the Texas Court of Appeals’ ruling in it’s entirety here.

Why might this be important to you? If you are intending to purchase real estate you should be aware that our MLS® feature sheets state: “Information herein deemed reliable but not guaranteed” and our standard Residential Real Estate Purchase Contract reads: “Any representations as to the measurements of the Buildings are only approximations and may not be accurate. The Buyer may wish to obtain an independent property inspection and verify the measurements of the Land and Buildings”.

So what steps do I take to protect the best interests of my Clients at all times? (Note that every REALTOR® licensed in Alberta has the same fiduciary duties to their Clients).

When listing: I ensure I physically measure and calculate the square footage of the home, including the dimensions of each room. Neither I nor my Clients want to be subject to a statement of claim for misrepresentation at a later date.

When purchasing: I ensure I physically measure and calculate the square footage of the home; unless my Clients tell me it is unnecessary and that they are satisfied the listed square footage is “close enough”. If this is the case I have my Clients sign a waiver stating that I discussed the issue(s) with them.

What steps is your REALTOR® taking to protect you?

///…CP

 

I Want to Buy…But I Need a Down Payment.

This post is the result of a meeting I had with some mortgage brokers from BMO last week…

Most of us have heard of and/ or are familiar with the Government of Canada’s Home Buyer’s Plan (HBP) that allows first-time home buyers to withdraw up to $20,000 from their RRSPs to buy or build a qualifying home for themselves or for a related person with a disability.

You can find out more here…

 

The purpose of this post is to let you know about a creative way that BMO has come up with to help you maximize your down payment in the shortest period of time…

Here’s how they suggest doing it:

• Borrow up to $20,000 from BMO to purchase an RRSP;
• At day 91, redeem the $20,000 RRSP under the Home Buyer’s Plan and pay off the BMO loan (estimated interest cost for loan is $300);
• If you are in a 35% tax bracket, the tax deduction you will receive for the $20,000 contribution will be approximately $7000.00;
• If you and your partner were both to do this, you would receive $14,000 in tax deductions (potential refund), that you could use as the down payment toward your home.

Obviously the above information is generic and is for illustrative purposes. Contact me directly and I will put you in touch with my BMO contacts so you can determine if this is an option for you…

///…CP 

Budgeting Basics for First-Time Buyers

Here’s another post taken from my ‘News You Can Use’ Preferred Client publication.

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Buying your first home is a lot of fun and most new/ prospective home owners are financially savvy enough to calculate the mortgage, interest, taxes, and insurance payments – but often forget about less obvious expenses. Here are a few budgeting basics for first-time home buyers…

Moving Expenses: Truck rentals, movers, time off work and of course, gasoline. Moving takes money, whether you do it yourself or pay others to do it for you so plan accordingly. I’ve had Clients spend anywhere from one or two hundred dollars to several thousand dollars to accomplish their move.

Maintenance: Have you ever heard the expression “Houses are money pits”? From lawn care to fixing a doorknob, owning your own home involves maintenance. Few first-time home buyers realise the expense of maintaining a yard until the neighbours start giving them dirty looks. Don’t get caught by surprise, this is one area where expenses can add up fast. Set aside funds for a lawn service, or plan to purchase the tools required to do it yourself — including lawnmowers, garden and hand tools, fertilizer, and other general maintenance items. Check out my post entitled Good Growing Neighbours for ideas that may help reduce your yard maintenance expenses and the looks you get from your neighbours.

Utilities & Communication: New home buyers are frequently surprised by the cost of utilities since many apartments include basics like cable, trash, and water. Set aside enough funds for the initial deposits and the first month’s payment for gas, power, phone, cable, and other necessities. Don’t forget to find out if your cell phone, cable, and other services are available in your new area. If not you may be forced to break a contract to new obtain services.

Remember, home buying is both fun and stressful at the same time — and much of the stress people experience tends to be of the financial variety. Plan, plan, plan, and budget, budget, budget and hopefully your fun will outweigh your stress.

///…CP

Hey Bill, Where’s The Balance?!

This kind of reporting really fries my ass!
It is misleading to say the least and is a perfect example of everything that is wrong with reporting real estate statistics in a vacuum and without context. It is also representative of the type of ‘balanced’ article that I complain about and that usually appears in ‘the other Edmonton paper’. Much to my surprise however, it appeared in today’s Edmonton Journal. In fairness to Bill Mah, his article is based upon a report released by a reputable canadian brokerage.

If I were a regular consumer (i.e. not an industry member) and were to read this article by itself I would think the sky was falling — again. It’s no wonder nobody knows what to make of our economy, Edmonton-area real estate, or their real estate investment(s).

Here are some statistics to ponder and to read in conjunction with the aforementioned article:

• Average SFD selling price down 5.06% for the quarter (i.e. over June);
• Average residential selling price down 4.82% for the quarter (i.e. over June);
• Average SFD selling price down 9.37% over September 2007 (i.e. versus the same period for 2007);
• Average residential selling price was down 1.31% over September 2007 (i.e. versus the same period for 2007);
• At the end of September there were a total of 8,807 homes listed for sale (versus 10,817 homes listed in June); and
• Total residential sales reached 71.2% of the total sales for calendar year 2007.

Need more convincing about the condition of Edmonton’s skies? Here are some more statistics I threw together:

	2008	2007	2006
RESIDENTIAL LISTINGS (SEP)	3,140	3,952	2,604
RESIDENTIAL SALES (SEP)	1,729	1,042	1,844
YEAR-TO-DATE
LISTINGS	33,702	33,168	20,170
SALES	14,621	17,188	17,446
AVERAGE PRICES
SINGLE FAMILY DWELLING	$362,097	$399,555	$322,077
CONDOMINIUM	$252,234	$270,745	$212,403
DUPLEX/ROWHOUSE	$315,690	$310,110	$279,038

[SFD means single-family dwelling. Residential prices include SFD, condos and duplex/ row houses. Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. The statistics compiled and presented herein were adapted from the REALTORS® Association of Edmonton Monthly MLS® Report and Quarterly Report, both of which are available online at www.ereb.com.]

 

 

The fact is, the sky is not falling. Read my post from last week regarding the most recent MLS® statistics  and make sure you check out the simple graphic I produced (at right).

It clearly illustrates just how the sky has been falling this year…

By the way, if you sensed some sarcasm you were right.

 

///…CP