When you see the following problems listed as a concern in your inspection report, be sure to ask more questions to find out how serious the problem is and how much it will cost you to remedy. If the inspector writes “N/A”, “can’t be determined” or worse, left blank beside any of the following problems, be sure to bring a specialist in so you have a clear understanding of the extent of the issue.
Electrical problems: Almost every home has an electrical problem, some a missing ground or reverse polarity to under sized breakers and panels. Homes built before 1955 may have 60 amp services, and may not be insured by some companies until they're upgraded. This type of outlet will have only two prongs. Houses older than 40 years may have aluminum, or even worse, knob and tube, wiring. Insurance companies may not insure homes that contain certain types of wiring. If you really love the house, be sure to have an electrician come in to determine the amount of aluminum or knob and tube wiring. Often aluminum wiring issues can be remedied for minimal expense.
Foundation cracking: In most cases, foundation failure is a result of poor surface drainage. Look for a vertical crack eight inches in from the corners. Where there is one, there is a companion probably below grade. Look for water stains on the sides of the crack to see if water has been seeping into the home through the crack. It would be advisable to get a foundation expert in to provide you with a detailed report on the necessary reparations.
Ice damming: Ice dams are responsible for clogged and damaged eavestroughs, wet insulation in the roof and walls. Wet wood, paint failure and decay will result if the problem persists. Ensure your inspector goes on the roof to check the integrity of the roof.
Galvanized plumbing: Galvanized pipes are usually found in homes over 50 years in age. Commonly, these pipes will rust from the inside out, often restricting waterflow. Eventually the pipe becomes blocked or bursts. Importantly, some insurance companies are now refusing to provide homeowner's insurance on houses with this type of plumbing.
Structural problems: Watch for over-spanned beams or poorly reinforced beams especially when a post is moved for basement renovations. Over spanned beams can cause roofs to sag over time (especially with heavy snow accumulation) resulting in serious damage and serious expense! If renovations have been done in the basement, ask your inspector to ensure load bearing walls were not removed or main supports compromised. You may also run into this issue if an older home has been converted into an ‘Open Concept’ style.
Poor air barrier and insulation: Just about every home inspected requires additional caulking and insulation. The investment in caulking is returned in just a few months and additional insulation in key areas can have a ROI in less than three years. Be sure your inspector goes up into the attic to check the level of insulation. As most of your heat will escape through the roof, it is important to be sure you are properly insulated.
Improper venting: A major issue can be found in the bathroom. Problems occur when vents are not vented directly outdoors. If you have a basement bathroom, ensure it is vented outside. Sometimes basement bathrooms will be put in by the home owner without proper permits and proper venting is overlooked.
Source: Canadian Association of Home and Property Inspectors
Top 3 defects
Problems revealed by home inspections vary depending on the construction type and age of the home. Still, there are three common problems which all carry significant cost. The life-cycle of these items is approximately 20 years, at which time these systems often need to be replaced.
1. Shingles or flat roof: For energy efficiency, structural damage and, for a flat roof, snow accumulation can lead to serious damage, leakage or collapse.
2. Furnace: For safety, energy efficiency and operating costs, ensure the age of the existing system.
3. Central air conditioning: For energy efficiency and operating costs. As with the furnace, it is important to understand the age of all mechanical parts of the home. If they are all at the end of their lifespan, you could be looking at significant expenses for new parts.
Source: Pappas Home Inspections Inc.
For more information on buying or selling real estate in Burlington, Hamilton, Oakville, or Toronto Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit the Sean Kavanagh Real Estate Resource Centre at www.seansells.ca, or at www.seankavanagh.ca I'd be happy to answer any questions to accommodate all of your real estate needs. Follow me on TWITTER or FACEBOOK! You can also contact me at 905-220-9198 or at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.
Sean Kavanagh
Building Lasting Relationships and Exceeding Expectations
It is not the intended purpose of a home inspection, but the inspection might also give you some insight into potential opportunities for repairs and renovations that will not only make your home more pleasant to live in, but may also increase its value. With the federal government's new Home Renovation Tax Credit, you may have financial incentive to undertake some of these projects once you become a homeowner.
Unveiled Jan. 27, 2009 in the federal budget, the HRTC will provide Canadians up to $1,350 in savings for money spent on home renovations through a temporary 15% income tax credit on eligible home renovation expenditures for work performed or goods acquired up to Feb. 1, 2010. The credit can be claimed on eligible expenditures exceeding $1,000 but no more than $10,000.
Renovation costs for projects such as finishing a basement or remodeling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses. Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.
Eligible expenditures include renovating a kitchen, bathroom or basement; new carpet or hardwood floors; building an addition, deck, fence or retaining wall; a new furnace or water heater; painting the interior or exterior of a house; resurfacing a driveway; and laying new sod.
Here are some things to keep in mind when planning a change or renovation:
Think about how changes might appeal to someone buying your home in the future. For more on that, please read “Think about selling it before you buy it”. You can make very personalized changes with paint because it is inexpensive and can easily be changed. However, items like flooring, cabinets and countertops have a longer life - make choices that will also be appealing to others.
Updating the bathrooms and kitchens in an older home can increase its resale value.
Don't underestimate the importance of landscaping. The right planting can improve the appearance and value of your home.
Updating your exterior paint, installing new roofing, resurfacing your walkways and driveway, adding attractive mailboxes and front-yard planting can also increase value. Over time, renovations can practically pay for themselves, especially if they result in savings on utility bills, a higher selling price or years of greater comfort and enjoyment in your home.
Home inspection 101
A home inspection is a visual examination of a house and property, including:
a thorough visual inspection of the structure (inside and out, from foundation to roof)
an examination of all major systems (Heating and Air conditioning)
an objective evaluation of the condition of more than 400 items
a printed report covering all findings and identifying potential concerns
Most appealing upgrades
Kitchen cabinet upgrade
Hardwood floor upgrade
New windows
Removing walls to open up space
Finishing the basement
Kitchen appliance upgrade
New shingles
new bathroom taps and plumbing
new bathroom tiles
Source: AmeriSpec Home Inspection Service
For more information on buying or selling real estate in Burlington, Hamilton, Oakville, or Toronto Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit the Sean Kavanagh Real Estate Resource Centre at www.seansells.ca, or at www.seankavanagh.ca I'd be happy to answer any questions to accommodate all of your real estate needs. Follow me on TWITTER or FACEBOOK! You can also contact me at 905-220-9198 or at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.
Sean Kavanagh
Building Lasting Relationships and Exceeding Expectations
Source: AmeriSpec Home Inspection Service and Your First Home Buyers Guide
Real estate statistics for September prove we continue heading in a positive direction. All numbers from Toronto to Hamilton are up in both units sold and average sale prices.
Toronto Real Estate Board - Units sold are up 27% and average prices are up 6%.
Hamilton/Burlington Board - Units sold are up 16% and average prices up 2.7%
Oakville/Milton Board - Units sold are up 21% and average prices are up 3%
Burlington Market - Units sold are up 13% and average prices are up 5%
Oakville Market - Units sold are up 35% and average prices are up 14%
Milton Market - Units sold are up 11% and average prices are up 13%
Remember! It is important for you to look at your specific neighbourhood to see how your local market is moving. For more information, Click Here. For a complete and detailed report on real estate stats in your neighbourhood, please send me a brief message letting me know the neighbourhood in which you live and I will be sure to get you a report sent out right away!
For more information on buying or selling real estate in Burlington, Hamilton, Oakville, or Toronto Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit the Sean Kavanagh Real Estate Resource Centre at www.seansells.ca, or at www.seankavanagh.ca I'd be happy to answer any questions to accommodate all of your real estate needs. Follow me on TWITTER or FACEBOOK! You can also contact me at 905-220-9198 or at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.
I look forward to hearing from you!
Sean Kavanagh
Building Lasting Relationships and Exceeding Expectations
Have you ever thought about paying off your mortgage quicker? Have you ever had some money you wanted to invest, but just didn’t know where to put your money? Bumping up your mortgage payment can save you a fortune over the years ahead.
Consider our happy newlyweds Dick and Jane. They live in Burlington, Ontario in a three-bedroom, two-storey home. They owe $200,000 on their mortgage at 6.5 per cent. Right now, they are making monthly payments of $1,340 and are on track to pay off their house in 25 years. Based on their current schedule, they will wind up paying more than $200,000 in interest over the life of their mortgage. See what happens if Dick and Jane decided they wanted to pay off their mortgage a little quicker.
1st scenario: If Dick and Jane simply increase their monthly mortgage payment by $180 to $1,520 a month, they can pay off their mortgage in 19 years and save $53,510 in interest costs.
2nd scenario: If Dick and Jane split their current monthly payment in two and pay every two weeks instead of monthly, they increase their total mortgage payments from $16,075 a year to $17,415 a year. That means they pay off their mortgage in 21 years instead of 25 years, and save nearly $40,000 in interest costs.
3rd scenario: If Dick and Jane keep making their current monthly payment, but add an additional payment of $7,000 once a year, they pay off their mortgage in 13 years and save $107,000 in interest.
In most cases, homeowners can arrange to take advantage of any of these options simply by calling their bank. But whatever strategy Dick and Jane choose, they should resist the temptation to choose banks’ latest mortgage “deal,” which consists of the ability to skip a payment once a year. While that may seem enticing, such a strategy would stretch out Dick and Jane’s mortgage payments to almost 31 years. They would pay a whopping $263,000 in interest costs over the life of their mortgage, or $61,000 more than if they had stuck with the original 25-year monthly payment schedule.
For more help on how to pay off your mortgage quicker, please contact me today so we can chat about saving thousands of dollars in interest by adding a few dollars per month to your mortgage payments.
House hunters still waiting for prices to drop further before buying may have sat on the sidelines too long, according to a new report. A study released Thursday shows home values in some major markets across Canada have recovered to levels where they were before the recent market drop. Economists agree and say the power has shifted to a seller's market in recent months, after the buyer's were in control for more than a year.
Low interest rates, pent-up demand, and improved affordability as a result of record low interest rates are behind the recovery. This has resulted in buyers taking advantage of the low rates and jumping into the market place. Buyers who have waited for the market to ‘bottom out’ have waited too long. Housing prices have been on the rise and with a small inventory of available houses, sellers are getting close to their asking price, and in some markets, multiple offers are driving the prices over list price.
The market turn around can be attributed to the government’s new incentive programs, particularly for new home buyers. Earlier this year, Ottawa increased the amount first-time home buyers can withdraw from their RRSPs from $20,000 to $25,000, and implemented a tax credit for first-timers of up to $750 to help cover closing costs. It also introduced new tax credits of up to $1,350 for home buyers who do renovations.
The lack of supply has also affected the upward turn in housing prices. Sellers aren't putting their homes on the market because they are anticipating prices to rise further. Less inventory for buyers drives up demand, and in turn price.
Bank of Canada governor Mark Carney has issued a conditional commitment to keep the policy rate at the record low of 0.25 per cent until next summer, which means mortgage rates will likely remain at record lows for awhile longer.
A strong and stable market will bring more listings. An increase in listings and a levelling off in demand will bring us back to a balanced market over the next few months. You can follow the trends more closely by following me on TWITTER, FACEBOOK or on my website, www.seankavanagh.ca
Building lasting relationships and exceeding expectations.
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