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 !

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

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)

When you’re looking for a new home, how do you know what’s okay and what’s a red flag? Read on to find out!

DEAL BREAKER: Buried oil tank
A buried oil tank is expensive to remove and could create potential environmental issues. If the tank leaks oil into the ground — yikes! — the cleanup and repairs could cost up to $40K. Since you can’t see it, be sure to ask the sellers, or check if it’s noted in the fine print of the home’s listing information.

DEAL WITH IT: Old roof
An old roof doesn’t necessarily indicate a bad roof — so long as it’s not leaking, you’re okay to go. Just make sure you start saving money right away for when you do have to replace it.
PRICE TO FIX: $1,700 to $8,400 to replace asphalt shingles on a typical ranch home, depending on the location. Prices increase for a complete replacement as well as for different materials and types of homes.

DEAL BREAKER: Amateur plumbing and wiring
Novice plumbing could cost you big if you have to rip out pipes and replace walls and flooring due to leaks. There’s also a higher risk of a short leading to sparks and fires if the electrical work had been done by a non-pro. Look out for exposed wiring in the basement as well as S-traps under the sinks (professional traps look like a “P”).

DEAL WITH IT: Ugly wall-to-wall carpet
Consider the possibilities! You can rip it out and replace it with fresh carpet or gorgeous new tile. Or you could restore the original wood floor below by buffing or re-staining.
PRICE TO FIX: $13 to $20 per square yard for buying and installing inexpensive flooring.

DEAL BREAKER: water damage
See it low on basement walls where they meet the floor? The house may have huge drainage issues. These won’t typically be solved with simple grading. Think: An expert to dig around the foundation or basement and install drainage pipes…expensive! If you spot water damage high in the corners of most rooms, buyer beware. It can be a sign of a leaky roof or years of pipe damage.

DEAL WITH IT: Electric stove instead of a gas one
Have your gas company run a line into your home from a gas line in the street or the propane tank in your yard.
PRICE TO FIX: Approximately $300.

DEAL BREAKER: asbestos
Asbestos poses a serious health hazard (it’s a carcinogen). Check in attics and around the plumbing for asbestos insulation; it can either look chalky or like fiberglass insulation with little air chambers on the end. Pass on an older pad if the insulation is worn or disintegrating.

DEAL WITH IT: no central AC
Window units are a pain, but something you can live with until you get a system installed.
PRICE TO FIX: Installing central AC can cost anywhere from $2,000 to $3,000.

DEAL BREAKER: bad school district
A bad school district is definitely a red flag if you want children in the future. Even if you plan to sell before your own kids are old enough to attend school, the majority of family-oriented buyers won’t want to buy it, either.

DEAL WITH IT: gross wallpaper
This is a pretty easy fix. Pick up a wallpaper scorer at your local paint or hardware store and score the paper (to make holes). Use a mixture of white vinegar and warm water to loosen the glue, carefully peel off the pieces of paper and remove any excess glue from the walls once the paper is completely pulled down.
PRICE TO FIX: Under $50, unless the home’s wallpaper is hiding a multitude of sins.

Source: Alexandra Kay of www.TheNest.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

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

What You’ll Need

• Drop cloth
• Stepladder
• Level
• Measuring tape
• Metal straightedge
• Utility knife
• Paste (specific to your paper type)
• Foam paint roller
• Wallpaper brush
• Sponge
• Work surface (such as a dining table)
• Wallpaper (try vinyl-coated with a free match pattern – no design to line up!)

BEFORE YOU BEGIN
Make a date: Wallpapering is a two-person job, says Frank Fontana, a designer on HGTV. Measure the length of the wall and multiply that number by the room’s height to determine how many rolls you’ll need. (A standard roll is 15 feet.) Remove everything from the walls and spackle any holes. Then give the entire wall a wipe-down with a damp sponge.

Step 1: Cut

Measure your wall and divide its width by the width of the paper to determine how many strips you’ll need. Cut paper into strips six inches longer than the wall’s height, to allow for shifting to match patterns. Use a level to make a plumb vertical line at the wall’s midpoint – you’ll align the paper with this straight line rather than your likely uneven ceiling.

Step 2: Paste

Lay your paper pattern-side down and use a paint roller to apply a thin, even layer of paste to the back, making sure to completely cover the entire surface, including all edges.

Step 3: Book

Gently fold the strip into thirds by bringing the two ends toward the center (don’t overlap them), being careful not to crease the paper. Allow to set for 10 minutes. This technique, known as booking, will help the paper absorb the paste and make it easier to manipulate on the wall.

Step 4: Hang

Unfold the top half of the booked strip, lining it up with the plumb line and overlapping the edge at the ceiling by about three inches. Smooth the paper outward and downward with a wallpaper brush to remove air bubbles. Once you reach the middle, unfold and smooth down the bottom half.

Step 5: Trim

Paste doesn’t stick immediately, so you can shift the paper until the seams match and the design is straight. Then, trim excess paper at the top and bottom with the utility knife.

Step 6: Dry – and you’re done!

Clean off any visible paste from the seams and surface of the paper using a damp (not wet) sponge. Let dry for at least 48 hours before hanging anything on the wall. Our pick: We used Thibaut’s Julian wallpaper in the cream and metallic color scheme (thibautdesign.com for store info).

Source: Lara Robby of RedbookMag.com

Some homeowners and real estate agents are thinking beyond price, condition and location to get buyers in the door and make a sale. Michael Travis, an agent with Coldwell Banker Residential Brokerage in Portsmouth, N.H., equates it to being noticed among potential daters on a dating website. “You have to stand out,” he says.
Here are five offbeat ways to sell a home. Hopefully, they’ll inspire you to think outside the box.

1. Let them sleep over

Some builders and sellers are offering prospective buyers a chance to stay in the home for a night. They’re even welcoming folks with bottles of wine and other goodies to make their stay comfortable.

The tactic has been featured on TV, with shows such as HGTV’s “Sleep On It,” which depicts buyers spending the night in homes and even throwing dinner parties.

“This is a pretty ‘out there’ concept,” says Benita Carswell, principal and broker with Atlanta-based Bo Bridgeport Brokers.

Atlanta buyers Tim and Kimberly Miller were considering a new home but wanted to know if the street in front of it was too noisy. The builders let them bring air mattresses, and the couple set up camp for the night.

The Millers woke up the next morning, satisfied with what they didn’t hear, and put a contract on the new home, which they moved into in December 2008.

“It was really what kind of helped close the deal,” Tim Miller says.
Carswell, who was the Millers’ agent, says the sleepover gave them “the experience of that home.”

“It was like being out on the front porch in the evening and being able to see how the traffic was or the noise level in the neighbourhood,” she says. “That final thing really confirmed it for them.”

On second thought: Set some rules for what potential buyers can do in the house. If they decide to have a party, it could get out of hand and possibly damage the home or furniture, says Dorcas Helfant-Browning, past president of the National Association of Realtors. Also, it’s not a risk-free move because the more time a potential buyer stays in a home, the more things they could question or dislike, Carswell says.

2. Hire house-sitters

Staging is becoming more common, but some absent owners are taking it to the next level by hiring house-sitters. Buyers also get the chance to buy the home fully furnished.

Getting a house-sitter is something to consider in areas where there have been many vacancies and where you want buyers to have a sense of the neighbourhood and someone occupying the home for security, Helfant-Browning says.

“People want to live in neighbourhoods because there are people there,” she says. “Not only does it help the property that’s being sold, it really is a benefit to the neighbourhood.”

Professional stager Barb Schwarz, chairwoman of the International Association of Home Staging Professionals and CEO of StagedHomes.com, says having someone live in the home adds another challenge to the staging process. She says another gimmick she heard being used in Florida involved hiring actors to “live” in a community during open houses.

“When the buyer comes in, you want the buyer doing one thing: to mentally move into a space. That’s what staging does,” says Schwarz, author of Home Staging: The Winning Way to Sell Your House for More Money. “What we don’t want are people in the way. It’s about setting the scene and doing it in a way that features the space.”

On second thought: Choose the house-sitter wisely. You want someone who lives neatly and who will allow buyers into the home whenever they want to visit.

3. Offer incentives, incentives and more incentives

Builders continue to chip away at prices with special deals, some of which have taken $100,000 or more off the price of a home. But individual sellers also should consider price and other incentives that could entice a buyer to take a look.

“You have to attract their attention somehow,” Travis says. “You want to create the buzz.”

Travis’ sellers have offered gas cards when prices skyrocketed or offered to pay for a year’s worth of propane for an old house. He’s sold condos in which the seller has paid for a year’s worth of expensive homeowners’ fees.

Travis’ most unusual sale happened when he advertised a free lakefront house with the purchase of a $405,000 pontoon boat that he says was “beat to hell.” Travis says he was having a hard time selling the home, even though it was lakefront on a 300-acre New Hampshire lake, because it was on a cove lot without any beachfront.

When he advertised the house as free with the purchase of the boat, potential buyers came out just to see what was going on. The house eventually was sold, but the boat was turned down.

These and other incentives – some sellers have offered free vacations and spa trips and boat and car leases for a year – can get traffic through your door, Travis says.

Sometimes people see the concessions and realize the sellers are willing to work with them. “They realize they have a little more negotiating room,” he says.

On second thought: Don’t include items, such as lawn or recreational equipment, in the ad for the home. But during negotiations, you might want to throw in the pool table or lawn mower to help seal the deal.

4. Swap lives

Finding strangers with the same housing preferences and the desire to change homes might seem difficult, but it’s happening, with some transactions aided by websites such as goswap.org and onlinehousetrading.com.

The chances are slim that you’ll find a match of two perfectly equal homes in different locations, says Helfant-Browning, principal broker with Coldwell Banker Professional Realtors in Virginia Beach, Va. But, she says, the idea often works when one person with a lot of equity in a home wants to move up and the homeowner in the biggest house is willing to downsize.

“It’s sound for someone with a large home who may be looking to move down and the move down isn’t the home of their dreams, but it might make economic [sense],” she says.

On second thought: This could be the chance for an investment. Some people improve the smaller residence to sell when the market rebounds, or to rent it to generate extra income.

5. Sell to a builder

This is a version of the swapping idea, with the builder willing to buy your residence if you put a contract on one of the builder’s new homes.

It’s an investment decision on the part of a builder, who must decide how much it will cost the company to renovate and pay the mortgage, Helfant-Browning says.

Sellers shouldn’t expect to make a hefty profit with this strategy. The builder typically will take it below the asking price because of the risk involved.

On second thought: If the buyer is “upside down” in the home – they owe more than the home is worth – it’s more difficult to trade, Helfant-Browning says.

By Lori Johnston, Bankrate.com