Edmonton Real Estate Blog

“Monthly costs of owning a home depends greatly on the size, age and location of the property. Things you might want to consider are: property tax, hydro, water, insurance, cable, phone, maintenance around the house, mortgage payments. What is not to be ignored is the age of the property. You should also calculate a reserve fund for when things go wrong and need replacement. All systems have expiry dates bv: roofs and furnaces, appliances etc., Take a certain percentage of the value of your property to put into your house to keep the property up to speed. Hope this info helps you !

April 14, 2011 – Well just when you thought maybe spring was here we are being hit with a snow storm this morning with a forecast with between 5 – 10 cm of snow.  I think we might just skip spring and move onto summer.

The spring marketplace continues to be strong.  As of this morning there are 2,551 single family dwelling for sale in Edmonton proper. This is a pretty typical inventory level for this time of year.  In the previous 30 days there were 661 single family homes sold in Edmonton proper.

This would give us a listing to sales ratio of 3.85:1 just slightly below the 4:1 ratio that we require for a neutral or balanced market. As long as this ratio stays below the 4:1 market expect valuations to continue to have upward pressure to increase.

I am experiencing this first hand as I was trying to sell a property to one of my buyers earlier this week and there were 6 offers written on the property before we could present. Ultimately we had to write an unconditional offer $12,000 over the list price in order to acquire the property.

This is our new reality again. Really good properties listed at a good price are selling within 24 – 48 hours and don’t be surprised to be in a multiple offer situation.

The average list price of a single family dwelling in Edmonton proper is $398,717 and the average selling price in the last 30 days was $386,028. The average number of days on market was 43 days.

Source: Realtors Association of Edmonton

One of the best things you can do to ensure you get the home you want is to arrange for financing before you go shopping. This is often referred to as getting “pre-approved”.

Getting pre-approved simply means that your lender has calculated how much of a mortgage they’re willing to offer you, depending on your down payment and current financial situation.

There are two advantages to having a pre-approved mortgage. First, you know exactly what you can afford when shopping for a new home. Second, when you make an offer, you’re likely to be taken more seriously.

To get pre-approved call “Chita” at Dominion Lending Centres – Optimum 780-932-2225 or go online for a free no-obligations pre-approval @ www.edmontonbestmortgagerates.com

Remodeling can dramatically increase the quality of life for building occupants, but if you are considering a remodel strictly as an investment, think twice about it.
 
Remodeling is rarely a sound monetary investment.

According to a report published by Remodeling Magazine, most remodeling projects add only 60% to 80% of their cost to the home, and no projects, on average, yield any positive return. Home upgrades are thus more accurately described as consumer spending than as true investments, which ordinarily have a decent chance of seeing some kind of profit.

Remodeling is also a cheap alternative to house-swapping, which can cost 10% of your current house’s value to real estate commissions, moving costs, and selling expenses. If your home update would cost less than the costs accrued by house-swapping, or if you can’t live outside your current neighborhood, the remodeling project might be worthwhile. If you do choose to remodel your house, as always, have the project inspected by Top Quality Inspections Inc.

Low-Cost Alternatives to Remodeling
Real estate agents often recommend the following fixes, as they are likely to return more than their cost:
• Refurbish rather than replace. Refinishing or re-facing cabinets is usually less expensive than it costs to replace them. Re-glaze sinks and tubs to extend their lives and avoid the high price of replacing them.
• Rethink how you use space. While adding floor space may seem like a reasonable way to deal with a space crunch, you can probably achieve the same result by ditching the clutter. An off-site storage unit can be used to free up space in your house.
• Re-purpose a room. Never use the guest bedroom? Maybe you can turn it into an office or a dining room instead.
• Paint. Paint can transform the look of a room or house, and it is inexpensive and relatively easy to apply. Hire a professional or do it yourself.
• Brighten the house by removing heavy curtains, washing windows, and trimming back branches and bushes that cover windows.
• Deep-clean. Scour your house from top to bottom.
• Clean up landscaping. Trim bushes and hedges, rake leaves, clear downed branches, plant flowers and replace mulch.
• Use staging techniques. Rearrange furniture and décor to highlight the positive aspects of the room and create an inviting space. While you can do this one your own, professional staging services are contracted to tweak color and furniture to create an emotional appeal. Consider that a large segment of prospective home buyers will preview homes on the Internet, and staging can dramatically enhance a first impression.

In summary, remodeling is often a bad investment strategy, and inexpensive alternatives may achieve the same end.  For more information on remodel inspections contact Top Quality Inspections Inc. or visit them at http://www.topqualityinspections.com/

WASHINGTON, March 10 – As spring approaches, many home owners grow eager to start remodelling projects to update and refresh their surroundings. Before getting started, it’s a good idea to hire a professional remodeler for a workable plan and better results, according to the National Association of Home Builders (NAHB).

“A professional remodeler knows how to translate a home owner’s dreams and budget into a beautiful reality,” said Donna Shirey, CGR, CAPS, CGP, President of Shirey Contracting in Issaquah, Wash. and 2010 chairman of NAHB Remodelers. “They have the expertise and skills to satisfy a customer while keeping the budget in check.”

 
Here are five tips for planning a successful home remodel that you can enjoy for many years to come:

1. Compile a list of home remodelling ideas and draft a budget for the work. You likely have some projects in mind, such as modernizing the bathroom, renovating the kitchen, replacing windows or repairing the roof. Prioritize your wish list: Maybe you don’t have the budget for your dream remodel, but professional remodelers can maximize your dollars by doing the work in phases, suggesting budget-friendly products and materials, and implementing creative design solutions.

2. Look for a professional remodeler to help plan the project. Start by searching NAHB’s Directory of Professional Remodelers at www.nahb.org/remodel. You’ll get a list of nearby remodelers to contact. Asking friends and neighbours for names of qualified remodelers will also help you find a match for your project.

3. Check the references and background of the remodeler. After you start speaking with remodelers and find one or two who match your project’s needs, be sure to conduct some background research by checking with the Better Business Bureau, talking to their references, and asking if they are a trade association member (such as NAHB Remodelers). Remodelers with these qualities tend to be more reliable, better educated, and more likely to stay on top of construction and design trends.

4. Agree on a contract. Talk over the details of the home remodelling project and begin reviewing the contract. You’ll want to check the remodelers’ insurance coverage, ask about any warranties on their work, know who is responsible for obtaining any building permits, and understand the process for making any change

5. Take advantage of the energy efficiency tax credits. If your remodel includes replacing windows or doors, adding insulation, installing new roofing, upgrading heating or air-conditioning units, updating the water heater, or installing energy generating products (such as solar panels, heat pumps, or wind turbines) then you can take advantage of federal energy efficiency tax credits through 2010 that will help defray costs and maximize your remodelling budget while reducing home energy bills. (Learn more at www.nahb.org/efficiencytaxcredit.)

For more tips on planning a home remodel or hiring a professional remodeler, visit www.nahb.org/remodel.

Source: HGTVPro.com

Tips from the professionals on how to make your mark in real estate investing

With the Canadian real estate market – be it residential, industrial or commercial – showing resiliency in the wake of the recession, property as an asset class is drawing investors with the promise of higher returns on hard assets.

After watching their wealth evaporate on the stock market, many investors are drawn to the property market because they want to be able to look at what they just bought, said Queen’s University professor John Andrew, who specializes in investment real estate.

“Historically real estate has been a haven in times of inflation,” he said. “It’s also been a place where people feel they have an understanding of what they’ve just done – they can walk down the street and see their purchase.”

That said, it can be a risky proposition. If this recession has taught us anything, it’s that property values can plummet, and fast. You just can’t buy a building and walk away. But if you have the nerve, here are some tips from the professionals on how to make your mark in real estate.

Getting started

Real estate investment trusts are the most passive way to get involved. These companies have units that are publicly traded, which means you own a share of the REIT rather than a piece of real estate. The sector is small in Canada, with fewer than 20 publicly traded REITs, but the well-funded companies have been actively adding properties to their portfolios in a bid to generate more income for their investors.

The first few weeks of this year haven’t been particularly great for the REITs, with the S&P/TSX Capped REIT index (which tracks the companies) gaining 2 per cent, but it’s still above the overall market’s .9-per-cent decline. For the past 12 months, the index has gained 60.8 per cent.

“This is a good way for a passive investor to get involved with real estate with fewer of the headaches,” Prof. Andrew said.

A little deeper

While the $12-million office building around the corner keeps catching your eye, maybe you find the price tag a little hefty. If only there was a way you could pool your resources with other cash-strapped millionaires.

Turns out, there is. Brokers around the country are constantly putting together syndicates – groups of private investors who want to pool their money and share ownership of attractive properties.

Jason Shiner of Ottawa’s District Realty said most deals involve investments of $100,000 to $250,000. The key is to ask questions before joining.

“You want to look at who you are partnering with, what rules there are about who can join, what are the exit strategies,” he said. “You don’t want to be the weakest link, or the strongest, you all want to have about the same amount at stake.”

For the big player

These investors – and if you’re one of them, you probably already know this – tend to purchase retail and industrial properties and keep them in the family. When they want to do a deal, they pick up the phone and call someone such as Michael Turner, an executive vice-president at CB Richard Ellis who specializes in private investments.

The country’s most expensive cities aren’t their primary targets. They opt instead for smaller markets where pension funds and real estate investment funds couldn’t be bothered to go shopping.

“They prefer places like Atlantic Canada, or smaller Prairie cities,” Mr. Turner says.

Joys of rental properties

The dream of home ownership isn’t the motivating factor for those buying rental properties – it’s the dream of a steady stream of cash as dream tenants make their payments on time and take extra care not to scratch the hardwood.

Of course, you’re just as likely to hand over the keys to someone who looks trustworthy but then decides that paying rent is for chumps. Worse yet, your unit could sit empty for months as expensive classified ads fail to draw anyone to your doorstep.

But for this exercise, let’s ignore the nightmare scenario and focus on the deal. Interest rates are at all-time lows, which means more of the cash that is generated each month can go toward paying off your mortgage. And with a 5-per-cent down payment, the barriers to entry are actually quite low (one caution – you carry that mortgage on your personal credit report).

And unless you want to spend a lot of time doing maintenance, a property manager is a must.

“If you are not handy, then get a manager,” Ottawa property investor Chris Jurewicz said. “If you do not want to be tied to your cellphone 24×7, you need one. It sounds like a lot of money at 4 to 6 per cent of revenue, but see if you would want to do it for that amount of money.”

Source: Steve Ladurantaye of The Globe & Mail (www.TheGlobeAndMail.com)

Replace the sink: $75
These days you can buy a nice sink for under 100 bucks. The stainless steel and acrylic (some look just like white porcelain) are the cheapest, while real porcelain may be out of your range.

Refinish your kitchen cabinets: $100
This means either sanding them down and restaining them, or just painting them in a semigloss or glossy latex paint. For a bold change, ditch the white and try a pale blue, a coral red, or even glossy black for a modern look. All you need is sandpaper, paint, and equal parts elbow grease and patience.

Make your own fabulous hardware: $1 a piece
If the hardware you want is out of your range, transform the stuff that’s in it. “One woman wanted brass switch plates in her kitchen but they were $8.00 each, and she needed 27 of them and she couldn’t justify paying all that,” explains Paul Ryan, host of Kitchen Renovations on the DIY Network. “So, we got her metal switch plates for 47 cents each, and some shiny Krylon brass paint.” So instead of spending $216 on switch plates, she spent $22 for the switch plates and a can of paint. The savings: almost $200.

Buy inexpensive under-cabinet lighting: $50
If you can’t afford new lighting, consider lighting you can attach under the cabinets, suggests certified kitchen designer Judy Scott, an associate for Home Depot.. Ikea sells a number of affordable types and sizes — like the Grundtal ($49) and the Didoder (just $39) — that plug into wall outlets instead of the electrical wiring in your kitchen.

Add a kitchen lamp: $40
For a cost far less than permanent track lighting, add a flea market find or pop-bright colored table lamp or a hanging kitchen chandelier, to change the whole look of the room. “I put a lamp in mine,” says L.A.-based interior designer Jennifer Delonge, “and it really warms up the kitchen and makes it feel like a whole new room.”

Replace the countertop: $90
Not all countertops are made the same — or cost the same. “You can buy a 10-foot piece of laminate countertop for $89,” says Scott. (You also need a saw, which you can rent from a local hardware or big box store). It won’t add value to your house, but it can do wonders as a short-term solution.

Paint the refrigerator: $60
If you can pull that ’70s-style olive green fridge out of its hole, you can transform it, explains Scott. Clean it, then degloss it by sanding it down with a piece of $1.49 sandpaper so that the primer will stick. Finally, prime it and spray it with a high-gloss spray paint. Voila! A brand-new fridge! (It’s tempting, but you can’t paint the gas range too. Ranges get too hot and will cause your paint to peel; the only high-heat paint you could use is the black matte they use for unshiny barbecue grills. In other words: yuck.)
Get more renovation tips from the experts at The Nest
Photo credit: Ellen Silverman

— Amy Spencer of www.TheNest.com

Taking a DIY approach will save you on labor costs and the mark-up contractors charge for materials. If you’re feeling handy, here are some doable fix-ups:

Refinish or Reface Kitchen Cabinets
Consider either refinishing existing cabinet doors with paint, stain, or laminate; or reface them, which means putting new doors on existing kitchen boxes. Hint: Order one door and one drawer front before ordering the whole set so you know they’ll really work. Check out more budget-friendly kitchen renovation tips.

Buy New Knobs for Cabinetry
Replace wood knobs with modern stainless ones, or swap cold metal ones for antique colored glass knobs (Anthropologie always has a great assortment).

Add Track Lighting
Because these are lights that go on the surface of the ceiling, as opposed to “pot” or “can” lights that are recessed, you can install these yourself.

Insulate the Attic and Other Energy-Sucking Areas
Caulk around windows and spaces between the floor and baseboards. Service your furnace so it produces the most for the least, and insulate your visible pipes for heat loss. Buy a “draft stopper” or “draft guard” for the bottoms of your doors (a cheap fix from $10 per door) so wind or heat doesn’t slip through. 

Tile the Bathroom Floor or Kitchen Backsplash
Make sure your surface is flat and dry surface — like a cement or plywood subfloor, an even wall, or a tiled surface you want to cover with new tiles. Use spacers between tiles and the notched trowel to create even ridges on the mortar under the tiles.

Replace Faucets and Fixtures
A new, modern faucet can make a sink in your kitchen or bathroom look brand new again. As long as the new fixtures don’t require a smaller hole in the furniture or sink than the one that’s already there, it’s an easy upgrade. 

Add Wainscoting 
What looks like an intricate wall design is actually a straightforward DIY project, provided you’re working with even walls in good condition. Basically, you just need to purchase the wainscoting (according to your measurements) along with a coordinating baseboard and rail, and some glue or nails to put it up. For tips, click here.

Paint
Is it obvious? Yes. Is it an easy solution to changing the entire look of a room in an instant? Yep, that too. Paint a whole room, add a bold accent to a wall, or do some fresh, glossy white trim for the cost of a few gallons of paint.

Nestperts Judy Scott of The Home Depot; Tom Silva, general contractor for This Old House; Jennifer DeLonge, an LA-based interior designer

— Amy Spencer of www.TheNest.com

Planning on building, buying or improving your home this year? Chances are you’re thinking smaller, smarter and more family-centric.

“We continue to see a ‘cents and sensibilities’ approach when it comes to buying or improving a home, said Eliot Nusbaum, Better Homes and Gardens‘ executive editor for home design.

Nusbaum made the comment while presenting the results of the magazine’s Next Home Survey at the National Association of Home Builders’ International Builders Show in Las Vegas last month.

Price, energy-efficiency, organization and comfort are top priorities of potential new home buyers and homeowners who are planning improvements in the next few months, he said.

“Today’s homeowner is also looking for a home that fits the entire family-from a multi-tasking home office, to expanded storage space, to a living room that can adapt to advancements in home entertainment and technology,” said Nusbaum.

Later, speaking by phone from his office in Des Moines, Iowa, he said: “When someone says their highest priority is an efficient HVAC system, you know we’re not living the same dream as three years ago. That dream was having a showplace home-a McMansion with the emphasis on two stories, big public spaces and an expensive fit-and-finish kitchen.

“Now, those things have drifted to the back burner. Today it’s ‘what I need’ versus ‘what I want.’ People are being sensible and practical. They want low-cost improvements that pack a big punch,” he said.

There were no major surprises in the survey results, “Though I thought it was interesting the number of people-85 per cent-who expressed a desire to have a separate laundry.”

And Nusbaum was mildly surprised that 70 per cent of those surveyed wanted low-maintenance landscaping, “when gardening is supposed to be America’s top hobby.”

NEW-HOME TRENDS

Here are some of the results of Better Homes and Gardens’ Next Home Survey, and some of the trends that may influence new-home building and home-improvement projects in 2010:

87 per cent of respondents said a greener, more-energy efficient home is a priority.

68 per cent wanted an outdoor grilling and living area.

59 per cent wanted a home office.

36 per cent said their next home would be “somewhat smaller” or “much smaller.”

75 per cent said the economy has impacted their home-improvement plans.

52 per cent said now is the time to spend on needed repairs and maintenance, rather than major home-improvement projects.

Source: Better Homes and Gardens

Find the right fix-it pro for those jobs you can’t (or don’t want to) do yourself

The number one rule in hiring any service professional: Get references. Word of mouth from friends and neighbors is the best way to find a good worker who’ll deliver great results. You can also search user reviews on Websites like servicemagic.com (free to use, because prescreened member contractors pay to belong) or angieslist.com (subscription-based, but with no sponsor companies).

Ask anyone you hire about minimum charges, and what might cause the price to go up from the quote. Inquire about insurance (in case of injury, or damage to your or others’ property), and about professional affiliations and accreditation. Read contracts carefully. Here, some specifics to ask a prospective…

Plumber

• Do you specialize in repair work or remodeling? Some may do both, but you’ll get better rates and results if their expertise matches the job you need handled.
• Do you charge for travel time? Plumbers spend a lot of time on the road; their hourly rate may include driving to and from your house.
• Are you likely to have the necessary parts handy? A plumber worth his or her salt should be fully stocked; you don’t want to get stuck paying for multiple supply-gathering trips.

Electrician

• Do you need a permit to do the work? They’re usually needed only on larger jobs, and require that the wiring be inspected by your town (this can protect you against shoddy work). Discuss who’ll be filing for the permit, and what it will add to the cost.
• Will you buy the fixtures or parts for me? It’s generally preferable, because the electrician will then be responsible for the product warranty and any breakage or missing pieces.

Exterminator

• Will we need to leave the house? Are there any risks to people or pets? All pesticides should be EPA-certified, but there may be safety steps you or the exterminating crew need to take.
• How soon will the critters be gone? Total eradication may not happen after just one visit.
• Are return visits covered in the cost? Many firms offer 30- or even 90-day guarantees.

Housepainter

• What is included in the service? From masking off of unpainted areas to moving of furniture (for interior jobs), priming, and multiple coats of paint, all should be delineated in the contract, as well as what supplies and tools (brushes, rollers) are included.
• Can you get a discount on paint? A good painter has a relationship with a supplier to get you the best price on the best product for the job.

Roofer

• Should I repair or replace? Leaks are often difficult to diagnose, and a repair in one spot may not fix the whole problem. Recommendations will vary, so get three estimates.
• Will you be roofing over existing shingles? If the basic structure is sound and leaks will be easy to patch, a cover-up job is far more cost-effective; if you already have two layers, most building codes require removal and replacement. This should be factored into the quote.
• Is there a warranty or guarantee? There should be both: The manufacturer backs the materials for defects, while the work may be covered for up to 10 years by the roofer.

Source: Amy Roberts GoodHouseKeeping.com