Jerri-ellen Fraser

Buying or selling a home is a complex and often very emotional process. Just casually mention to family, friends and colleagues that you plan to buy or sell a property, and watch the advice pour in. Everyone has a story to tell: a great deal made and lost, a bargain that wasn't, the frustration of a price war, and so on.

Truth is that buying or selling a home is a major business transaction -- one of the biggest most of us ever make. It requires tremendous knowledge and experience and a clear understanding of the legal issues and potential pitfalls.

That's why it helps to use the services of a real estate professional who is a member of a real estate board. REALTORS^® have the training, knowledge and experience to help you every step of the way -- from the moment you think about buying or selling, to the time when the business transaction has been finalized. visit ww.shesells.org

Whether you are just thinking about buying or selling, or have already enlisted the services of a real estate professional, the Ontario Real Estate Association's (OREA) has "tip" books that will help take the mystery out of a process often viewed as complicated and confusing. You can order free copies of How to Buy Your Home and How to Sell Your Home by calling OREA at 1-800-563-HOME.

Many of the books available on real estate buying and selling can be complex and confusing, assuming a lot more knowledge on the subject than most buyers or sellers, especially first-timers, possess.

But not these two handy and manageable guidebooks click link to download free

PDF E-BOOKShttp://www.shesells.org/ Each is an easy-to-use, step-by-step guide that takes you through the process of buying or selling a home without a lot of confusion. The many terms used in real estate are explained in simple, easy-to-understand language.

Make no mistake, though. These two handy books can't replace the knowledge, skills and expertise of a REALTOR^®. They will show you how to find and work with one, as well as with a lawyer and other professionals who will generally be part of your real estate team.

Both books take you through the real estate process step-by-step. You can read them cover-to-cover or just zero on certain topics. With their check lists, work sheets, loads of tips, hints and advice, these books can help ease the stress of buying or selling real estate.

Buying a home?
How to Buy Your Home offers a lot of great advice for both first-time and repeat home buyers. You'll learn how to hire a REALTOR^®, a lawyer and other professionals, how to shop for a mortgage and compare mortgage options after meeting with various bankers, and how to select a home inspector to thoroughly check out the home you plan to buy.

This book can help you estimate the price range that's right for you, especially if you are uncertain about how much you can afford to spend. If you are selling your current home to buy another, it discusses the advantages and disadvantages of buying or selling first.

You'll also learn how to work with a REALTOR^® and other professionals, what additional costs to watch out for, how to close a deal and make a smooth move to your new home.

Selling a home?
Whether you are selling a home for the first time or have done it before, How to Sell Your Home helps you assess your reasons for selling and discusses alternatives to consider such as refinancing and renovation.

You'll also learn about the cycles in the real estate market and the "seasonality" of home sales that may affect your decision on "when" to sell. For example, changing interest rates can affect market cycles; chilly winter weather may draw out fewer buyers, but you'll also be competing with fewer homes on the market.

If you're pondering whether to buy first or sell first, this book will help you understand the advantages and disadvantages of both and the various options. For example, how to get bridge financing (borrow funds for the purchase of your next home when the sale of your current home is not yet complete) if needed.

The book provides tips on how to find and work with a REALTOR^®, how to determine a realistic asking price and how to enhance your home's appearance. It also explains how a REALTOR^® will help you market your home effectively, what to do when you receive an offer and how to complete a sale.

article taken from orea

New homeowners often find there's more to keeping up a house than cutting the grass and clearing snow from the driveway.

Tools
To start with, a new homeowner needs to have on hand a 'basic tool kit'. A number of basic tools are a must C a metal hammer, screwdrivers with a variety of heads, a small saw, electric drill, adjustable wrench, pliers and measuring stick. Sandpaper and an assortment of screws and nails are also very handy. These tools will help with simple repairs such as securing loose tiles, adjusting a door, installing a lock, etc.

Meters
Once you're equipped to perform the most basic repairs, take a look around. Do you know where your gas/electricity and water meter are located? Usually these are found outside the home by a side or back wall. This makes it easy for the meter reader who can take the readings without bothering you. Sometimes these meters, especially the water meters in older homes, are located indoors -- usually in the basement.

As new homeowners, it's a good idea to check your meters on a weekly or monthly basis. This will help you gain an understanding of seasonal increases and decreases in consumption and enable you to take measures to become more energy/water efficient.

Plumbing
Another area where a little knowledge can go a long way is in the plumbing system. House plumbing is divided into two separate parts. One is the fresh-water system that provides cold and hot water from the various fixtures throughout the house; the other is the drainage system that carries waste out of the house.

The fresh-water system can be completely shut down by closing the main valve, which is usually located in the basement near where the underground water line enters the house. Most lines that branch out from the main line also have individual shut-off valves so water can be turned off to one area without disturbing the flow in another. Most plumbing jobs require at least the partial shut-off of your home's water supply.

Meanwhile, the drainage system connects all the plumbing fixtures to a main sewer line that carries waste out of the house to a sewer or septic tank. The main sewer line extends above the roof of the house to allow gases to escape. The opening of this pipe, above the roof, is called a vent and must never be covered or allowed to become clogged with debris.

Electrical
Knowledge of your home's electrical system is also valuable in case you have to turn off all power in case of an emergency, such as a fire. You should know the location of the main electric switch in the house and how to use it. You should also know the location of the fuse box or circuit breaker and how to reset a breaker or replace a fuse in case one blows.

The main switch, along with the circuit breaker panel or fuse box, are located near the electric meter at a point close to where the power lines come into the house. They may be in the basement, utility room, or even the kitchen. The older the home, the more likely it will have a fuse box instead of a circuit breaker panel. Always replace fuses with ones of the same capacity.

Heating
Another important aspect of your new home is its heating system. The more familiar you are with it, the less likely you might find yourself cold on a winter's day. Heating systems are usually fueled by oil, gas, electricity or wood.

Gas-fired and oil-fired heating systems have burners and should be inspected regularly, usually once a year before the start of the heating season. Gas burners have pilot lights. You should learn to re-light the pilot light on your gas burner in case it ever goes out. You should also know the location of the gas shut-off valve so you can turn off the gas in case the burner doesn't light or you smell gas escaping.

Heating systems operate in a variety of ways. The better you understand your system, the safer and more efficient you can make it.

Hazards
Fire in a home is a major hazard that all new homeowners should be aware of. Early detection is the key to protecting your family and keeping damage to a minimum. Ensure your home has smoke detectors installed in hallways and bedroom areas. Smoke detectors sound an alarm when smoke is in nearby air, even if there is no intense heat. Ideally, you should have a smoke alarm in each bedroom.

If you have a gas-fired heating system or a fireplace in your home, it's also a good idea to install carbon monoxide detectors in the bedroom areas. Carbon monoxide is a colorless, odorless, tasteless toxic gas that, at high levels, can cause flu-like symptoms and even death.

While carbon monoxide detectors are not a substitute for proper care and maintenance of your home, they provide a good second line of defense by sounding an alarm when carbon monoxide reaches an unsafe level.

When we purchase a home, most of us want to turn it into a safe and secure haven for our families. The more we know about the home we have purchased, the more efficient and effective we can be

Article taken from OREA

Just like you take a car for regular tune ups to ensure it continues to run smoothly, your home also needs some special attention. There's a lot more to keeping up a house than cutting the grass and clearing snow from the driveway. Ensuring your home "looks" good and is in proper working order, not only makes it more attractive and comfortable, but it can also increase the market value of the property.

Homeowners who plan to move within a few years are often reluctant to invest time and money on improvement projects that may not pay them back. But unless these improvements are very specialized, any project you choose - from fixing leaky faucets to installing new energy efficient windows - will start to pay you back in energy savings and comfort long before you sell.

The wisest improvements you can make to any home are those that keep it running smoothly and bring it up to the standards of other homes in the immediate area. And these don't need to break your budget.

Easy maintenance, repairs
Start with simple repairs that don't cost a lot and you can do yourself: securing loose tiles, adjusting a door, installing a lock, repairing a leaky faucet or pipe, and so on.

It's also a good idea to locate and read your gas, electricity and water meters on a weekly or monthly basis. This will help you gain an understanding of seasonal increases and decreases in consumption and enable you to take measures to become more energy and water efficient. The savings could be substantial.

You should have your furnace inspected and serviced annually to ensure there are no problems and change or clean the filter regularly. Also, inspect the smoke and carbon dioxide detectors around your home. You want to be certain that these will work in the event of a fire or other emergency.

Bigger upgrades
While replacing leaky faucets can drastically improve a bathroom's appearance and cut down on water usage, sometimes it takes a lot more than that to bring an old bathroom, for example, to an acceptable standard.

A bathroom tune up can pay big dividends. The first items to replace should be the fixtures -- the sink, faucets, vanity, bathtub, shower, and toilet. This is where you will add value and save money by opting for a water-efficient fixtures and energy-saving devices.

The floors, walls and accessories are not an essential part of a bathroom tune-up, but you can save time and money when you do the complete overhaul at once, rather than one piece at a time.

If the decor in your home is bothering you, don't decide right away to rip everything out. All it may take to make your home look more attractive and in better repair are small improvements such as: refacing cabinets and counter tops, changing the colour scheme, repainting, hanging new wall coverings and installing new lighting.

Other good major home improvements include replacing old carpets and flooring with new, more durable products; adding a garage or a carport if your home does not have one; installing central air conditioning; repairing or adding a fireplace; upgrading your basement space; replacing old windows with new energy-efficient ones; adding terraces, wooden decks and fences that add privacy; and investing in landscaping that adds value and is easy to maintain

Articel taken from Orea

For most people the ideal closet is the size of a room with ample space to hang clothing, lots of shelves to tuck and stash away things -- a place where you can walk around and assess all your personal belongings.

In reality, most people's closets fall well short of this ideal. And few of us stop to consider the full potential of the closets we do have -- tiny as they may be. To understand their true potential, take a good objective look inside the closets you already have -- and the empty spaces that could be turned into closets or cupboards.

Closets are not the sort of thing most of us like to face. By their very nature, they invite us to avoid them. As long as the living space looks good, what's inside the closets doesn't really matter. It is said that both home and self improvement often start with your closets. The more effective and organized your closets are, the more effective and organized you feel.

The main things to consider when organizing your closets are budget, space and lifestyle. Even the tiniest closet can be maximized, and not necessarily at a high price.

Also, the contents of a closet don't necessarily have to fit the contents of a room. A hall broom closet can be turned into a pantry; a kitchen nook can be turned into a place to hang a wardrobe.

And you don't have to just hang things in closets. You can add shelf units, baskets, bins, or whatever fits, to store things in. Consider an air plane, a boat or a mobile home, where space is at a premium. Storage spaces are found above, below and to all sides of furnishings.

Here are a few more ideas to consider:

• Make your closets serve a variety of purposes. Try adding a shelving unit to a clothes closet where you can store pantry goods and other items.
• Always try to incorporate a variety of shelving units in a closet. These give you space to store small items such as shoes, scarves, handbags and even books.
• The ceiling space in closets is seldom used. Consider adding a shelve or a compartment to store bulkier items such as luggage or blankets.
• Before re-organizing a closet, take everything out. Set aside anything you haven't worn or used in a year. Consider donating these items to charity. Those you no longer use but want to keep should be stored separately in the attic or some place out of the way. Clearing out a closet is the first step in creating more space.
• Invest in a shoe rack that can be incorporated into your closet. Whether it sits on the floor or hangs from the door or is part of a shelve unit, a rack will not only keep your shoes together it will give the whole closet a more organized appearance.
• Plan to store your out-of-season clothes out of the way in boxes or elsewhere. Use the closet only to keep those items you wear regularly during a season.
• If you dislike the smell of mothballs but want to ensure your closets smell nice and don't attract moths, try hanging a sachet of dried rosemary flowers or a mixture of cinnamon and cloves. There are many fresh-smelling deodorizers and perfumed papers to choose from on the market as well.
• If closet space is still tight and there are few open spaces in your home that can be turned into closets, try adding an armoire or wardrobe. This was the furniture piece used for storing clothes back when there weren't built-in closets. It's still a popular and practical item in many homes today.
• Try turning an entire wall in a room into a storage area. There are many systems available that can be easily installed. You can close them up by adding doors, or keep them open and airy.
• Kitchens are where you can be most creative in finding extra storage space. To get the best use of kitchen closet space, store as much as possible outside the closets. That means hanging anything that can hang from the ceilings and the walls. Custom-design closets and cupboards for the specific goods each will hold. This may include drawers for knives, shelves for different size cans, jars, etc.
• Adding a shelving rack to the inside of a closet door can make even the shallowest closet seem deeper.
• In a child's room, don't limit yourself to the space inside the closet. Use lots of bins, stacking baskets and shelving units throughout the room to store and toss things in.

article taken from OREA

If you're thinking of purchasing your first home, you probably have a lot of great ideas about what you'd like - such as several thousand square feet of living space, a two-car garage, large fenced-in lot, one or two fireplaces and a panoramic view. But it may be time for a reality check.

Most first-time buyers want their dream home right away. However, that dream home likely sells for several hundred thousand dollars and the down payment is more than you earn in two years. Not to mention the mortgage payments - which are three times your monthly take-home salary!

The best way to deal with this reality is to match your financial capabilities with the home that meets as many of your needs as possible.

Many first-time buyers purchase what is commonly known as a "starter home." There's nothing wrong with this approach. In fact, it's good common sense to avoid buying a home that will stretch your budget to its breaking point. Remember, the starter home is just that - a way to get started in long-term real estate investment.

To see how much you can afford, you should take a close look at your financial situation. The vast majority of home buyers lack the funds required to buy a home without assistance from a bank or other financial institution (commonly called a "lender"). So, for most of us, buying our first home means combining our savings with money borrowed through a special type of borrowing arrangement called a "mortgage."

Borrowing to purchase is not only acceptable, it's desirable. Even people buying millions of dollars' worth of real estate borrow to make the purchase

There are two types of costs in buying a home:

• the amount of money you'll need for the initial purchase; this consists mainly of the down payment and other costs such as legal fees and taxes; and
• the ongoing costs of paying back your mortgage, along with monthly operating costs for utilities, maintenance, insurance and annual property taxes.

When lenders assess your ability to buy, they look at your ability to pay both types of costs in determining how much money they will lend you. Before you ever visit a lender, you can predetermine this amount, using the same formulas they do.

Lenders use several factors in judging your ability to handle a mortgage, including your income, employment record and credit worthiness. However, one way you can estimate the price range you can afford is to look at the amount of money you have available for a down payment.

The most common mortgage is a "conventional mortgage." In this type of arrangement, lenders will loan up to 75 per cent of the "appraised" value (estimated market value) of the property or the purchase price - whichever is lower. The remaining 25 per cent is the amount you will contribute as down payment.

If you want to buy a home that has an appraised value of $200,000, a lender may loan you 75 per cent or $150,000 on a conventional mortgage when you contribute a down payment of $50,000.

If you plan to borrow funds through a conventional mortgage, multiply the money you have available for a down payment by four. For example, if you have access to $40,000, you may be able to purchase a home with an appraised value of $160,000 ($40,000 x 4 = $160,000).

This assumes, of course, that you have sufficient income to make the payments on a $120,000 mortgage (75 per cent of $160,000). Most lenders will not permit a borrower to take on a debt load the borrower can't carry. That's why reputable lenders "qualify" potential borrowers before issuing mortgages.

Most lenders say that your monthly housing expenses (mortgage payment and taxes), plus condominium maintenance fee, if applicable, would not exceed 30 per cent of your monthly gross family income.

This is called your Gross Debt Service (GDS) ratio. Some lenders will go as high as 35 per cent, depending upon a number of variables.

Lenders also use a second calculation in qualifying you for a mortgage. It's called the Total Debt Service (TDS) ratio. Generally speaking, no more than 40 per cent of your gross family income may be used when calculating the amount you can afford to pay for mortgage payments and taxes plus other fixed monthly expenses.

These other fixed costs are your ongoing commitments and can include auto, student or personal loans, as well as revolving charge accounts. Again, the 40 per cent calculation may vary slightly among lenders.

By knowing exactly what you can afford, you can make your home purchase with confidence.

Article from Ontario Real Estate Association