Tag: Jim Gardiner

Watch out for RECOs top 10 home buying and selling pitfalls

?For most people, buying or selling a home is one of the most important and highest value purchases they will make, and potentially the most challenging. November is Financial Literacy Month, an opportunity for the Real Estate Council of Ontario (RECO) to put consumers on alert for 10 major home buying and selling mistakes that can lead to an unsatisfying experience or even serious complications.

RECO is responsible for protecting home buyers and sellers. Weve seen too many Ontarians encounter these pitfalls,? says RECOs Registrar Joseph Richer. Being mindful of these 10 considerations can help the buying and selling process go a lot smoother.?
Here are the most common buying and selling hazards, and how to avoid them:

1. Allowing emotions to overtake common sense
When you fall in love with a property it can be hard to walk away. Know your budget and dont overpay. Dont forgo a home inspection just to win a bidding war.

2. Hiring the first salesperson you meet
Ontario has over 60,000 brokers and salespersons, with a broad range of approaches to the buying and selling process. Meet with a few different representatives before settling on one, and make sure you feel comfortable with them and their approach to the process. Also be sure to get references and contact them to learn about their experience with the salesperson.

3. Not making your expectations clear with your real estate professional
Its important that you and your representative have a mutual understanding about what youre looking for, and what services the brokerage will be responsible for. Make sure you talk to your broker or salesperson about the services you expect them to provide, and get it in writing.

4. Failing to read and understand forms and contracts
It can be tempting to speed the process along by signing forms that you havent read. But taking the time to understand what youre signing can avoid a lot of problems later on. For example, you dont want to find out that youre on the hook for a six month listing agreement to sell your home if you only want your house on the market for three months. In addition, a holdover clause could mean that if you sell your property during a specified period without the assistance of the broker or salesperson, you would still owe them commission. Make sure all the blanks on the form are filled in before you sign it, and make sure you get a copy of whatever you sign.

5. Assuming everything is included
Dont assume that the furnace, dishwasher or other items are included with the property. The seller may?want to take the dishwasher with them to their new home, and the furnace might be under a rental?contract that youll be required to take over. Before making an offer, detail all items, known as chattels,?in writing. Your offer can also include a clause stating that the seller will pay out any outstanding leases?on the homes major systems.

6. Forgetting about whats within the walls
Granite countertops and new hardwood floors are appealing, but the insulation, wiring and plumbing?are just as important when youre evaluating a property. Ask your real estate representative to look into?the age of the homes systems and if there have been any upgrades. If extensive renovations have been?done, your real estate professional can determine if the appropriate permits were issued.

7. Forgetting about whats outside the walls
When you buy a house youre also buying a place in a community. Some places are lively, others are?quiet. Some places are filled with kids while others are not. Visit the neighbourhood at different times of?the day to see if it fits your lifestyle. Talk to the neighbours about the community and the locations of?various amenities like grocery stores and banks.

8. Not doing your research
If youre concerned about buying a home with a troubled past, a simple Internet search for the address?can go a long way. This is also something you can ask the neighbours about.

9. Making verbal agreements
Verbal agreements arent a problem, until theyre a problem. Putting everything in writing forces both?parties to be clear about their expectations and provides a record that can prevent disputes later on.

10. Underestimating closing costs
From land transfer taxes to title insurance to a home inspection, the costs of a real estate transaction?can add up quickly. Take the time to include estimates and other expenses in the full cost of buying or?selling a property.

While all of these tips are essential, the most important advice is to work with a registered real estate?professional.
Registered brokers and salespersons provide a great deal of knowledge and expertise about the buying and? selling process, along with specific knowledge about neighbourhoods and local issues,? says Richer. They can?also provide crucial help in avoiding these hazards.?

Watch out for RECOs top 10 home buying and selling pitfalls

?For most people, buying or selling a home is one of the most important and highest value purchases they will make, and potentially the most challenging. November is Financial Literacy Month, an opportunity for the Real Estate Council of Ontario (RECO) to put consumers on alert for 10 major home buying and selling mistakes that can lead to an unsatisfying experience or even serious complications.

RECO is responsible for protecting home buyers and sellers. Weve seen too many Ontarians encounter these pitfalls,? says RECOs Registrar Joseph Richer. Being mindful of these 10 considerations can help the buying and selling process go a lot smoother.?
Here are the most common buying and selling hazards, and how to avoid them:

1. Allowing emotions to overtake common sense
When you fall in love with a property it can be hard to walk away. Know your budget and dont overpay. Dont forgo a home inspection just to win a bidding war.

2. Hiring the first salesperson you meet
Ontario has over 60,000 brokers and salespersons, with a broad range of approaches to the buying and selling process. Meet with a few different representatives before settling on one, and make sure you feel comfortable with them and their approach to the process. Also be sure to get references and contact them to learn about their experience with the salesperson.

3. Not making your expectations clear with your real estate professional
Its important that you and your representative have a mutual understanding about what youre looking for, and what services the brokerage will be responsible for. Make sure you talk to your broker or salesperson about the services you expect them to provide, and get it in writing.

4. Failing to read and understand forms and contracts
It can be tempting to speed the process along by signing forms that you havent read. But taking the time to understand what youre signing can avoid a lot of problems later on. For example, you dont want to find out that youre on the hook for a six month listing agreement to sell your home if you only want your house on the market for three months. In addition, a holdover clause could mean that if you sell your property during a specified period without the assistance of the broker or salesperson, you would still owe them commission. Make sure all the blanks on the form are filled in before you sign it, and make sure you get a copy of whatever you sign.

5. Assuming everything is included
Dont assume that the furnace, dishwasher or other items are included with the property. The seller may?want to take the dishwasher with them to their new home, and the furnace might be under a rental?contract that youll be required to take over. Before making an offer, detail all items, known as chattels,?in writing. Your offer can also include a clause stating that the seller will pay out any outstanding leases?on the homes major systems.

6. Forgetting about whats within the walls
Granite countertops and new hardwood floors are appealing, but the insulation, wiring and plumbing?are just as important when youre evaluating a property. Ask your real estate representative to look into?the age of the homes systems and if there have been any upgrades. If extensive renovations have been?done, your real estate professional can determine if the appropriate permits were issued.

7. Forgetting about whats outside the walls
When you buy a house youre also buying a place in a community. Some places are lively, others are?quiet. Some places are filled with kids while others are not. Visit the neighbourhood at different times of?the day to see if it fits your lifestyle. Talk to the neighbours about the community and the locations of?various amenities like grocery stores and banks.

8. Not doing your research
If youre concerned about buying a home with a troubled past, a simple Internet search for the address?can go a long way. This is also something you can ask the neighbours about.

9. Making verbal agreements
Verbal agreements arent a problem, until theyre a problem. Putting everything in writing forces both?parties to be clear about their expectations and provides a record that can prevent disputes later on.

10. Underestimating closing costs
From land transfer taxes to title insurance to a home inspection, the costs of a real estate transaction?can add up quickly. Take the time to include estimates and other expenses in the full cost of buying or?selling a property.

While all of these tips are essential, the most important advice is to work with a registered real estate?professional.
Registered brokers and salespersons provide a great deal of knowledge and expertise about the buying and? selling process, along with specific knowledge about neighbourhoods and local issues,? says Richer. They can?also provide crucial help in avoiding these hazards.?

Why a REALTOR??

Buying or selling a home or cottage is far more than a real estate transaction. Its often at the heart of a major life transition?such as purchasing your first cottage, buying a larger cottage because your family has grown, or downsizing to simplify your life as empty nesters.

Thats why a REALTOR? can make such a difference. Like other professionals, REALTORS? look out for your best interests in areas you might not know. And because buying or selling a home or cottage is usually a big, often emotional decision that can have major consequences; the skills, knowledge and experience of a REALTOR? are vitally important if you want to achieve the best possible outcome.

Why a REALTOR®?

Buying or selling a home or cottage is far more than a real estate transaction. Its often at the heart of a major life transition?such as purchasing your first cottage, buying a larger cottage because your family has grown, or downsizing to simplify your life as empty nesters.

Thats why a REALTOR® can make such a difference. Like other professionals, REALTORS® look out for your best interests in areas you might not know. And because buying or selling a home or cottage is usually a big, often emotional decision that can have major consequences; the skills, knowledge and experience of a REALTOR® are vitally important if you want to achieve the best possible outcome.

Windows, doors costly to replace

A CLOSER LOOK: Energy savings, new features may be worth it

By ROB PARKER, Special to QMI Agency

Last Updated: April 21, 2012 12:00am

With spring officially here, many homeowners are starting to look at those jobs that aren't so appealing or practical during the winter.

Two areas that come to mind are windows and exterior doors that are subject to wear and tear stemming from constant use and exposure to the elements.

There are a number of factors to consider before making the decision about whether your windows or doors need to be replaced or repaired.

Some important things to consider include:

Though increased house air tightness can improve energy efficiency, in may also lead to a greater need for mechanical ventilation. A sufficient air supply also may be needed to prevent combustion appliances from back drafting.

Your existing windows and doors may not fit the style of your house or give you the features you want.

The components of windows and doors wear out over time. Failed seals on thermal pane window units, poorly operating windows or doors, damaged screens or hardware and air leaks are common problems. Older door and window hardware may not offer much protection against forced entry.

There may be structural problems affecting the operation of doors and windows. Installation of larger units or units in new locations will probably also require structural changes.

Windows and doors often deteriorate because of moisture problems that will not necessarily go away if you install new units. In fact, moisture may get worse because of reduced air leakage.

The glass area of windows and doors accounts for a high degree of heat loss at night or during the winter months, and heat gain when the sun is shining especially during the summer months. Though energy-efficient glazing can reduce heat loss, heating system modifications or some type of shading may be needed to improve comfort near large windows.

In my opinion, the best installation method for replacing windows and doors is the rough opening (R/O) method. With an R/O installation, the entire window or door, including the frame, is removed right down to the framework of the house.

This type of installation allows for complete sealing and alignment of the window or door to ensure optimum performance of the new unit. You should also make sure the windows or doors are Energy Star rated, come with a good warranty, and that the company you're dealing with is insured and has been installing windows and doors for some time.

Windows come in many different opening styles such as single hung, double hung, casement, sliding, awning and fixed. Most windows today are made with a vinyl frame, aluminum or stainless steel hardware and thermopane glass.

The glass can be coated to reflect heat. This is generally call E glass and space between the layers of glass filled with a gas such as argon creating the thermopane. In most cases, whatever style of window you choose can be installed in the existing window opening.

Over time, weather-stripping, hardware and door and frame materials can deteriorate or fail. Windows and doors are a part of the interactive system that makes up your house, so they should be constantly monitored to ensure they're supporting the other components of the system, including the structure, heating, ventilation and air conditioning equipment.

That said, it's a known fact that tighter and more energy-efficient windows and doors will reduce the heating and air-conditioning load on your home.

Though repairs can be inexpensive, they may not give good long-term results; on the other hand, replacement is generally costly, but may provide savings in energy use, making your house more comfortable and adding to its resale value.

As with any home repair or installation of equipment where you're relying on the product or service and workmanship of a company or contractor, you should seek out at least three estimates plus ask for references and check them out before signing any agreement.

Rob Parker is a registered home inspector with the Ontario Association of Home Inspectors and certified master inspector with the National Association of Certified Home Inspectors who does home inspections in the London area. Call him at ThameSpec Home Inspection Services at 519-857-7101, e-mail thamespec@rogers.com, or visit www.thamespec-inspections.com.

Real Estate Q & A: What is homeowner's insurance and do I need it?

When you purchase a home, consider how you will protect your investment.

Most mortgage lenders insist on fire insurance coverage at least equal to the loan amount or the building value, whichever is less.

 

You should also consider a homeowner’s policy that combines fire insurance on the building and its contents with personal liability coverage. Consult your general insurance agent or broker for professional advice on home insurance.

 

 

MORTGAGE LIFE INSURANCE

Mortgage life insurance (MLI) is inexpensive coverage on your life which protects your family or beneficiaries by paying off your outstanding mortgage in the event of your death. For just pennies a day, you will have peace of mind knowing your beneficiaries will be mortgage free. MLI premiums are based on two factors: your age and mortgage amount. Your premium is added to your mortgage payment so there’s no extra paperwork, and it remains the same until your mortgage is paid off. Joint coverage for spouses is also available.

 

DISABILITY INSURANCE

Disability Insurance is important if your mortgage payments depend entirely or in part on your income. Disability insurance provides replacement income if an accident or illness prevents you from working.

 

JOB LOSS MORTGAGE INSURANCE

Recently insurance companies have started to offer Job Loss Mortgage Insurance. This insurance covers the mortgage payments in the event that you involuntarily lose your job.

 

 

Chestnut Park Real Estate Ltd., Brokerage

Real Estate Q & A: What are the associated costs of purchasing a home?

Purchasing a home involves one-time costs and monthly expenses. The largest one-time cost, of course, is the down payment. It usually represents between 5-25% of the total price of the property. Typical monthly costs incurred with homeownership are mortgage payments, maintenance, insurance, condo fees, property taxes, and utilities.

 

 

In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for. These are listed below:

 

 

 

 

Other costs may include; landscaping, redecorating, furnishing, and appliance repairs.

 

 

Chestnut Park Real Estate Ltd., Brokerage

 

Real Estate Q & A: Making an Offer

When it comes time to make an offer, your Real Estate Professional can provide current market information and will assist you in drafting your offer.

Your agent will communicate the offer, sometimes known as an Offer to Purchase, to the seller, or the seller’s representative, on your behalf. Sometimes there may be more than one offer on a property coming in at the same time.

making an offer

 

FIRM OFFER TO PURCHASE

Usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.

 

CONDITIONAL OFFER TO PURCHASE

Usually means that you have placed one or more conditions on the purchase, such as “subject to home inspection”, “subject to financing” or “subject to sale of buyer’s existing home”. The home is not sold until all the conditions have been met.

 

ACCEPTANCE OF OFFER

Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed or one of you ends the negotiations.

 

There are six key components to the elements of an offer. They are:

 

PRICE

Depending on the local market conditions and information provided by your agent, the price you offer may be different from the seller’s price.

 

DEPOSIT

Your deposit shows good faith and will be applied against the purchase of the home when the sale closes. Your Real Estate Professional can advise you on an appropriate amount.

 

TERMS

Includes the total price offered and the financing details. You arrange your own financing or ask to assume the seller’s mortgage, especially if it has an attractive interest rate.

 

CONDITIONS

These might include “subject to home inspection”, “subject to you obtaining financing”, or “subject to you selling your property”.

 

INCLUSIONS AND EXCLUSIONS

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. These items would remain in the house.

 

CLOSING OR POSSESSION DATE

Generally, the day the title of the property is legally transferred and the transaction of funds finalized.

 

Chestnut Park Real Estate Ltd., Brokerage

Is It Time to Replace the Windows in Your Home or Cottage?

There are many benefits to getting new windows for the home, but due to cost and inconvenience, many homeowners put off replacing them. In fact, you may be wondering if it's really time to replace the windows in your home, or if you are simply tired of the ones in place. Here, we'll help distinguish the difference between 'wanting' new windows and 'needing' them.

There are three basic factors to consider when evaluating the windows in your home. They include energy efficiency, maintenance, and ease of use. Keeping these three things in mind, ask yourself the following questions:

Are my windows energy efficient?

To gauge the energy efficiency of your windows, consider the comfort level of your home. Is it difficult to maintain an even temperature during hot and cold months? Do you feel drafts around the window casings? Can you hear whistling through the window on a windy day? If so, it may be time to replace your windows with a more energy efficient set.

Windows that are certified as energy efficient can help regulate temperature, block sunlight, and control indoor humidity levels.

Do my windows require a lot of maintenance?

If you find that you spend a great deal of time and energy maintaining your windows, it may be worth the expense of replacing them. Maintenance may include, but is not limited to:

Removal of old paint – Painted windows require frequent scraping of old paint. Failure to remove it will result in wood rot.

Painting – When windows for the home are scraped of old paint, they need to repainted. If you spend a great deal of time on this chore, it may be time to replace them with easy-care vinyl or aluminum windows.

Operational adjustments – If you frequently have to force the windows open, replace hardware, or lubricate them often, they may need replaced.

Are my windows easy to use?

Can everyone in the household open and close the windows? If they refuse to open, stick in the up or down position, or won't swing in and out of place, it can pose a serious danger in the event of a fire. This, in itself, is a good reason to replace the windows in your home.

Additional signs that it's time to replace your windows:

Fogging – If your windows are frequently fogged between the panes, it's a sign that the glass needs replaced. If your windows are extremely old, it may be difficult (and costly) to find replacement glass.

Rot – Once the windows begin to rot, there's no stopping it. Rot can not only cause damage to the windows themselves, but to the area around it. Wet rot can attract termites, which can destroy a home.

Jennifer Wagner, Yahoo! Contributor Network
Mar 8, 2012

Retirement & Downsizing: BMO Advises on How to Determine Whether or Not to Make the Move

– First of Canada's nine million Boomers became eligible for retirement in 2011 – Health, location and financial considerations will determine whether they move or not – BMO offers advice to those thinking of giving up the family home
 

There are several factors to consider when making the decision to downsize or not, including:

Your Health

Although health matters may be hard to predict, it is important to think about what you might need to do if your health status changes in the upcoming years. A good place to start is to ask yourself the question, "If there were a shift in my healthy or mobility…"






	A Change in Location



	A change in location can greatly impact your day-to-day activities and social interactions, and will often determine the lifestyle you lead. Some retirees would prefer to live in a group setting, while others would like to live in a more urban area with easier transport.



	Financial Considerations



	Laura Parsons, Mortgage Expert, BMO Bank of Montreal, notes that, for those considering downsizing, many financial factors need to be considered, including costs related to property maintenance and the possibility of renovations to adapt to changes in lifestyle.



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