A home inspection prior to purchasing a home or condominium can bring peace of mind when you sign the sales contract. Knowing what to expect both inside and out will help you make an informed decision about the value of the home and the future upkeep. A home inspection accomplishes two important goals. First, it gives you a chance to determine the condition of the house, its structural soundness, and the condition of its mechanical systems. Second, it brings any problems to the seller's attention at a time when they can be resolved before closing a sale. If you sign a contract before inspection, consider including a clause that the sale is contingent upon a satisfactory structural inspection, and specify when the inspection is to be carried out. That way, you are protected. A comprehensive inspection includes a visual examination of the structure from top to bottom, including the heating, air conditioning systems, the interior plumbing and electrical systems, the roof and visible insulation, walls, ceilings, floors, windows and doors, the foundation, basement and visible structure. Following the examination, the inspector will provide a report that not only points out possible defects or areas of concerns, but also the positive aspects of the structure as well as the type of maintenance that will be necessary to keep the home in good shape. Even the most experienced homeowners lack the knowledge and expertise of a professional inspection firm. For example, watermarks in the basement may indicate a chronic seepage problem, or simply may be a result of a single incident. A professional assessment will provide complete information about the condition of the property you are considering and will help avoid any unpleasant surprises after the sale. In addition, a home inspector can remain totally objective, while you as a prospective homebuyer may be emotionally involved. The inspection fee for a typical single-family house can vary depending upon the geographic area. The particular features of the home such as size, age and special structures will be taken into consideration. A decision to have a home inspected is a good investment. You might save many times the cost of inspection by being aware of defects, maintenance requirements, and upgrading requirements. Good decorating should not sell you on a house. Remember, you're also buying structural and mechanical systems. Walk through a house twice before you hire an inspector. The first time, look at the rooms, the floor plan, and envision your own decorating ideas for the house. The second time, go back and look at the condition of the walls, doors, appliance, and plumbing. If the home still looks good after two visits and you're getting serious about the purchase, hire an inspector. Inspectors should be licensed in building-related fields; architects, contractors, and structural engineers are good examples. When interviewing a potential home inspection firm, carefully inquire about the specifics of their work and company. Ask how long they have been in business, ask for references from previous customers. Find out what type of insurance they carry and do they guarantee inspections? A home inspection usually lasts about three hours. Professional inspection companies will be happy to answer all your questions. Avoid firms that issue only a verbal report. The report should be in narrative form, not just a checklist of items inspected. The home inspector should also issue a written report with accurate cost estimates for any major defects discovered during the inspection. You may find it valuable to accompany the inspector as he goes through the house. Property inspections are not limited to residential properties. Many inspectors help homeowners with analysis and solutions to specific problems such as energy conservation, wet basements or cracked foundations. Inspectors also inspect work upon completion to ensure that a contract has been properly fulfilled. If you are considering purchasing a home, the Ontario Real Estate Association advises that you invest in an inspection by a reputable and qualified inspection firm. Buying a home is one of the biggest decisions you will make. Know what you are buying and what your future upkeep obligations will be. For more information regarding home inspections contact the Ontario Association of Home Inspectors (www.oahi.com).
How to host a successful yard sale | |
If your annual spring cleaning ritual has produced a mountain of unused and unwanted items, you may want to think twice before you simply toss them out. How about a yard sale to turn some of that "junk" into someone else's "treasure?"
Each weekend in spring and summer you'll find yard sales popping up in neighbourhoods everywhere. And, where there are yard sales, there are yard sale "junkies." For many people, scouring yard sales for a bargain on a Saturday morning is an art. Why not take advantage of that fact to make some cash off your cast-offs and have fun while you're at it.
The Ontario Real Estate Association and your local REALTOR® offer the following tips to host a successful yard sale:
First, settle on a date and time for your sale. Weekends are virtually universal for yard sales, and most run from 8 or 9 a.m. until 4 or 5 p.m. You'll also need to set a rain date, usually the next day if your sale is on a Saturday, or the following weekend if your date is Sunday.
Most sellers advertise by posting signs on lamp posts and hydro poles. This is a more effective way of letting people know you're open for business than you might suspect. Veteran buyers (see below for more) will scout a neighbourhood during the week looking for telltale flyers. Many of your customers will use this method.
Have someone present at all times. Theft is unlikely, but many sellers have learned the hard way that it does happen. Placing valuable items closer to your sales desk is a good idea.
Running out of change is also a problem that plagues many sales. As most of your transactions will involve small amounts, it never hurts to have $50 or more in small bills and loonies and twoonies at hand. Buyers will often stop at a bank machine before they come, so expect to get a lot of tens and twenties early in the day.
Think like a yard sale buyer
The ability to deliver the kind of goods and service that buyers want is perhaps the most important factor in the success of your sale. There are a number of items that are always in high demand: art, antiques (even distressed pieces), furniture, appliances, electronic equipment, tools, and lately, computer games and accessories. If you have goods in any of these categories, mention them in your flyer or ad.
Surprisingly, many veteran yard salers are not interested in old clothing. Unless you've got something special to offer, you can expect to turn much of your old wardrobe over to charity.
As to pricing your goods, nothing turns away a potential buyer more than a price that is too high. You can always expect haggling, but most won't even bother if you price an old lamp at $20, when similar items can be had for $5. The best plan of action is to attend a few sales the week before, and find out the going prices.
How you physically place your goods can also make a big difference. Don't clutter up your yard, and make sure your items are separated by category. This is a great opportunity to be creative. For example, there is a mini‑boom in memorabilia from the 50s, 60s and 70s. Believe it or not, the old Lava Lamp you consider trash, might be exactly what someone else is looking for.
Another good tip that will help make a sale is to offer free coffee to your visitors. A friendly face and a free cup of java can do wonders. Or if you want to get the kids involved, have them set up an old-fashioned lemonade stand and charge five cents a cup.
Depending on the type of items you're selling, you can expect to make as little as $20 or as much as a couple of hundred.
Finally, the success of a yard sale is measured by the amount of additional space you have in your house after the yard sale is over, and the amount of money you make. Now you may be tempted to run out and purchase more items that will likely end up in your next yard sale. But, why not celebrate your success by spending the money on dinner at a nice restaurant for the family and whoever helped at the sale.
Source: Ontario Real Estate Association
Bobcaygeon, City of Kawartha Lakes - Announcing a price reduction on JOHN ST N, a single story. Now 
MLS® $49,900 - was listed at $109,900.
Property information
Priced right for todays market
• single story - MLS® $25,000 - Just Listed
Galway-Cavendish and Harvey, Peterborough County - Level waterfront building lot on the MISKWAAZIIBI River. 126 feet of waterfront on pretty section of river. Property is located very close to local marina for access to Bald Lake and the entire Trent system, local community center.
Property information
Huge in town lot
• 1,400 sq. ft., 3 bath, 3 bdrm single story - MLS® $209,000 - Just Reduced
Fenelon Falls, City of Kawartha Lakes - One of the finest residential lots on a quiet tree lined street in Fenelon Falls. The property is 142x191 feet, offering great privacy, mature trees and in-town convenience. This three bedroom home boasts two fireplaces, formal living room and dining room, eat-in kitchen, main floor family room, one full bath and two half baths including an ensuite. Multiple walk outs to private rear yard and decks are ideal for entertaining or active families. Recent updates include furnace in 2007, re-shingled in 2006. Plaster walls, original baseboard and trim, crown molding and much more.
Property information
If you're thinking about buying a piece of real estate as an investment property, market conditions are definitely in your favour. While the resale housing market has seen a tremendous amount of activity from first-time buyers in the past year, it's also a perfect time for existing homeowners to invest in secondary residential properties. With record-low interest rates and significantly lower prices it's hard to go wrong - unless, of course you lack the financial means to make the investment. After all, you have to be ready to meet all the obligations that come with owning more than your principal property. For instance, keep in mind that if you intend to rent out the second property, you'll also have to be prepared to deal with tenants and handle maintenance costs. Leverage
Secondary home ownership is an attractive investment option because it gives you even more leverage than you have with your principal residence. Leverage is when a relatively small amount of your money controls a much larger asset - like a property. The more leveraged you are, the greater the financial return on your down payment becomes if the value of your property increases. There are very few other investments which can be purchased with such a small percentage of your own money. For instance, let's say you acquire a second property for $100,000, with a $15,000 down payment, and during the first year that you own it, the property increases by a value of three per cent for a $3,000 gain. As a result, the return on your down payment of $15,000 is 20 per cent - $3,000 divided by $15,000. Other Investments
By comparison, let's say you were to buy a term investment of $100,000 (in cash) for one year and it increased by $8,000 over the course of the first year. Since it cost you $100,000 in cash to buy it, the return on your investment is only eight per cent before taxes. Obviously, leveraging is a powerful way to make your money work for you. Getting Financing
You should be aware that many lenders place non-owner occupied deals in the high-risk category and it's not that unusual to find lenders who will not finance rental units at all - or those who will only finance them if they are insured. Obviously, lenders will want to know whether the property will carry itself. (Is there sufficient rent to cover the mortgage payment?) Don't make the mistake of assuming that a rental income of $500 per month will carry a mortgage payment of $500 per month. Only a portion of the rent is used to pay the mortgage; the remainder must cover taxes, maintenance, vacancy, bad debt and expenses. (Many inexperienced purchasers think that owning rental properties will allow them to "get rich quickly" and when this does not happen, the owner becomes disillusioned and loses interest in the property.) Costs
You should also be aware that the cost of obtaining a mortgage (for legal and appraisal fees) on a non-owner occupied property can be higher than the cost of obtaining a mortgage on an owner-occupied property, when more than one unit - such as a duplex or triplex is involved. Interest rates charged on rental properties might also be higher because some lenders view these properties as being a higher risk. As mentioned above, the main responsibility of having a second property is being able to carry it financially. And if you're like most people, you'll probably have to rent it to someone as a result. This is also a great deal of responsibility because you will have to maintain the property in addition to your own principal residence, and you'll be responsible for finding tenants who you trust and feel comfortable with. Some parents with grown children ready to go off to university or college choose to purchase secondary properties for their offspring to live in while they attend school. This gives them an excellent investment and they are assured that the occupants will take good care of the home. If you'd like more information about purchasing a second property, consult a REALTOR® . |
Source: Ontario Real Estate Association
If you're buying a home for the very first time, the process may seem a little daunting. After all, buying a home is probably one of the biggest investments you'll ever make. It helps to have a REALTOR® on your team -- someone who speaks the language of real estate very well.
A REALTOR® has the experience and the knowledge to guide you through the process of buying your first home and can help take the mystery out of the many terms, phrases and clauses you will encounter.
The following glossary, an excerpt from the Ontario Real Estate Association's "How to Buy Your Home" book, provides definitions of some of the most common real estate terms you are likely to come across.
The book also fully explains the process of buying a home and is available free-of-charge by calling 1-800-563-HOME or talk to your local REALTOR®.
Amortization: The number of years it takes to repay the entire amount of a mortgage.
Appraisal: An estimate of a property's market value, used by lenders in determining the amount of the mortgage.
Appreciation: The increase of a property's value over time.
Assessment: The value of a property set by the local municipality, for the purposes of calculating property tax.
Assumable Mortgage: A mortgage held on a property by the seller that can be taken over by the buyer, who then accepts responsibility for making the mortgage payments.
Blended Mortgage: A combination of two mortgages, one with a higher interest rate than the other, to create a new mortgage with an interest rate somewhere between the two original rates.
Blended Mortgage Payments: Equal or regular mortgage payments, consisting of both a principal and an interest component. With each successive payment, the amount applied to interest decreases and the amount applied to the principal increases, although the total payment doesn't change. (Exception - see variable rate mortgages.)
Bridge Financing: Money borrowed against a homeowner's equity in a property, usually for a short term, to help finance the purchase of another property or make improvements to a property being sold.
Buy-down: When the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and market rate directly to the lender or to the purchaser, in one lump sum or monthly instalments.
Closing: The real estate transaction's completion, when the parties involved agree that all legal and financial obligations have been met, and the deed to the property is transferred from the seller to the buyer.
Conventional Mortgage: A first mortgage issued for up to 75 per cent of the property's appraised value or purchase price, whichever is lower.
Counteroffer: One party's written response to the other party's offer during purchase negotiations between buyer and seller.
Debt Service Ratio: The percentage of a borrower's gross income that can be used for housing costs, including mortgage payment and taxes (and condominium fees, when applicable).
Deed: A legal document that conveys (transfers) ownership of a property to the buyer.
Easement: A legal right to use or cross (right-of-way) another person's land for limited purposes. A common example is a utility company's right to run wires or lay pipe across a property.
Encroachment: An intrusion onto an adjoining property -- such as a neighbor's fence, storage shed or overhanging roof line that partially (or even fully) intrudes onto your property.
Equity: The difference between the price for which a property can be sold and the mortgage(s) on the property. Equity is the owner's "stake" in a property.
Foreclosure: A legal process by which the lender takes possession and ownership of a property when the borrower defaults on the mortgage obligations.
High-Ratio Mortgage: A mortgage for more than 75 per cent of a property's appraised value or purchase price.
Land Transfer Tax: Payment to the provincial government for transferring property from the seller to the buyer.
Lien: Any legal claim against a property, filed to ensure payment of a debt.
Mortgagee: The lender.
Mortgage Insurance: Government-backed or private-backed insurance protecting the lender against the borrower's default on high-ratio (and other types) of mortgages.
Mortgagor: The borrower.
Multiple Listing Service (MLS): A system for relaying information to REALTORS® about properties for sale.
Prepayment Privilege: A mortgage feature that allows the borrower to prepay a portion or all of the principal balance with or without penalty. This privilege is frequently restricted to specific amounts and times.
Principal: The mortgage amount initially borrowed, or the portion still owing on the mortgage. Interest is calculated on the principal amount.
Status Certificate: A written statement of a condominium unit's current financial and legal status.
Variable-Rate Mortgage: A mortgage for which payments are fixed, but whose interest rate changes in relationship to fluctuating market interest rates. If market rates go up, a larger portion of the payment goes to interest. If rates go down, a larger portion of the payment is applied to the principal.
Vendor-Take-Back Mortgage: When sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.
Zoning Regulations: Strict guidelines set by municipal governments regulating how a property may or may not be used.
After 9+ years of operating my real estate brokerage, from our store front location at 40 Bolton Street, Bobcaygeon, I will be relocating to my home office.
A number of factors have come together, making now the right time for this decision.
My father and business partner, after a lifetime of sales and business experience has decided to retire. He will continue to service his long time friends and clients but will not be active on a daily basis. This decision is well earned, and I am please that my father is in a position to make this change in his life.
Our contractual obligations to our store front location and to GMAC real estate are both coming to an end.
The decision I faced was:
- The hiring of office staff, recruiting agents and working as a managing broker.
or
- Focus on the areas I enjoy most, as a working Realtor, assisting buyers & sellers achieve their real estate goals.
It truly was an easy decision.
Being free of the “franchise commitments” is something I have been working towards for the past couple of years.
Over the coming months, I will be implementing other “CHANGES” that I believe will be of interest to both buyers and sellers. Changes I would not be able to introduce if I were not free from “OVERHEAD and FRANCHISE Requirements” and are appropriately timed for the changing market place.
Lets Talk! Call me now at 1-866-445-4440 or send an email.
LOWER NET PROCEEDS: Most of the time an overpriced property will eventually end up selling for less than if it had been properly priced to begin with, not to mention the extra carrying costs.
CMA- what is your house worth?
A Comparative Market Analysis, or commonly known as a CMA, is report generated from recent real estate activity in your neighbourhood. Your home is compared with similar homes in your neighbourhood in three levels.
The first is properties that are currently for sale. These are properties you want to consider carefully because not only are they "actively" your competition, but, they give you a good idea of what other sellers in your neighbourhood are anticipating to sell their house for.
The next level is properties that are "pending" close of sale. This means that the property is sold and pending closing. Although these give a good indication of what type of properties are moving in the market, with regard to price it doesn’t determine what it actually sold for because price is usually not released until the close of escrow.
The third level is properties that have already "sold," meaning successfully completed sales. This is probably the most important to consider of all three because it plainly lets you know what buyers are paying for homes like yours.
4 features that determine highest price
· Location – The value of a house not only varies on the desirability of a city, but also what neighbourhood it is in, and what amenities are located nearby. (shopping, transportation, school, quality of waterfront, views, privacy etc.).
· Features – Upgrades and special features of a house add value as well. Things like a pool, spa, bay window, view, bedrooms, square footage, remodelling, etc. all affect the highest possible price.
· Condition – Overall condition has a great impact of what the "perceived" value is. The better maintained a house appears to be, the more confident a Buyer will feel offering full value because it gives the impression that you have taken very good care of not only things that are obvious, but also things that are not.
· Market timing – Is it a Buyer’s market or Seller’s market? Knowing the current market conditions will impact what the highest possible price for your house can be. Also, what cycle is the economy in? Prosperity or recession?
Visit www.nelsonlong.com and download Brad Nelson's Entire Prelisting Package today!
The first question you should ask yourself is "Why am I selling?"
Are you selling because you want a bigger home, or smaller home? Are you being transferred by your job, looking for a better neighbourhood or community? Perhaps you’ve come into some financial trouble and have to sell right away. Or, you want to get your equity out of your house now and buy something else.
Determining your motivation for selling will also help determine the amount of time you have to accomplish that. And, when putting your house on the market, timing is everything. One important factor to keep in mind is that no matter what your situation, you want to price your house right.