About London's Byron

Avoid These 81/2 Buyer Traps When Buying Real Estate Part 2

In part 1, we covered, bidding without sufficient information, buying the wrong home and unclear title. Lets' cover the rest:

Inaccurate Survey

Before the purchase is completed, a survey or title insurance should be a must. Most lenders will not issue a mortgage without a survey or title insurance. Again, a good REALTOR* will have a clause in the offer to protect you and make sure you discuss this with your lawyer.

Unexpected repairs

Don't expect every seller to disclose every physical detail that will need to be attended to. Use a professional home inspector to conduct a thorough inspection of the home, before you close the deal. A good REALTOR* will enclose a home inspection clause in the offer and only if the inspection report is suitable to you, would you waive that condition. (See my report: "The Role of a Home Inspector") A professional REALTOR* will know the best home inspectors out there and should be able to give you the names of two or three.

Not Getting Mortgage Pre-approval

Pre-approval is quick, easy and free. Knowing before hand what you qualify for will help you to avoid disappointment. When you are shopping for a home, this will give you more power; the seller will consider your offer as a serious one.

Hidden Costs

Make sure you identify and uncover all costs-large and small- far enough ahead of time. A good buyer's agent will discuss this with you, and you should discuss all fees and costs with your lender, your lawyer and any other professional you may use. (See my reports;"The role of a lawyer", "The role of a lender")

Rushing the Closing

Take your time during this critical part of the process. Do you understand your mortgage details? Has any thing been forgotten? Does the paperwork and documentation reflect your understanding of the transaction? Will your buyer agent take you through your planned house 2-3 days before closing? (To ensure that there is no unusual changes in the condition of the home, that what is supposed to stay-stays).

That is the 8 buyer traps and the ½ that can make you a happy camper

Can you now see why it is very important to have an experienced, knowledgeable and trusting REALTOR* to help you? A thorough systematic approach to real estate either buying or selling can save you time, money and frustration!

Is Buying a Home in London Ontario a Good Investment? As a fairly general rule, London homes and condos appreciate about four or five percent a year. Some years will be more, some less. The figure will vary from neighbourhood to neighbourhood, and region to region. For example, a 2 storey home in Sunningdale may appreciate more than a 2 storey home in Oakridge.

Five percent may not seem like much at first. Stocks (at times) appreciate much more, and you could easily earn over the same return with a very safe investment in treasury bills or bonds.

But, take a second look ...

Presumably, if you bought a $200,000 house in London, you did not pay cash for the home. You got a mortgage and lets say you put as much as 20% down, that would be an investment of $40,000.

At an appreciation rate of 5% annually, a $200,000 home in London would increase in value $10,000 during the first year. That means you earned $10,000 with an investment of $40,000. Your annual " return on investment" would be a whopping 25%!

Of course you are making mortgage payments and paying property taxes, along with a few other costs. Your rate of return when buying a home is much higher than most any other investment you can make.

If you would like to know more about other home buying ideas or tips, let me know and I will gladly see that you are informed and knowledgeable before you purchase.

Every day I get asked:"When is the best time to buy or sell a 2 storey home in London"? After getting as much information as possible about client's needs and wants, it all comes down to price and amenities. For obvious reasons, sellers of 2 storey homes in London want the higest price as possible and for buyers, they want to buy at the lowest price they can. As a real estate broker, regardless of my market anaylsis of a particular home, reality is still the best indicator of the market place.

In London Ontario from October 2008 to October 2009, the average price of a 2 storey home in London was $309,691, up 9.2% from the 2008 average of $283,503.

In North London, 634 2 storey houses sold including the neighbourhoods of Masonville, Sunningdale, Hyde Park, Stoneybrook with the average 2 storey home selling for $304,333 which was 98% of the asking price and being on the London real estate market for 51 days.

In South London, 464 2 storey homes sold, with an average price of $317, 210 which was 97% of asking price. Including the neighbourhoods of Byron, Summerside, Westmount and Old South, the average days it took to sell a home was 53 days.

In East London, 242 two storey homes exchanged hands with the average price of $243,239 which was 97% of asking price. 2 storey homes in East London were on the market for an average of 45 days and included neighbourhoods like Huron Heights, Fanshawe, Bellwood Park, Arglye and Bonaventure Meadows.

As you can see, the real estate market in London is stable and viable. As with any market, there are bargains or situations where speed and timing is king. If you would like a breakdown of a particular neighbourhood or street in London feel free to contact me.

In September, 708 homes exchanged hands in the London & St.Thomas area. 572 of those were detached homes and 136 condos. For the year, 5,190 detached homes have sold in the London and St.Thomas area & 1,205 condos sold. The average residential price for London homes has increased by 1.9% with a 4.5% decrease in price for St.Thomas homes. “National sales activity in the third quarter is on track for a significant increase compared to the second quarter,” says Canadian Real Estate Association (CREA) President, Dale Ripplinger. “Low interest rates and affordability continue to attract homebuyers to the housing market. Consumer confidence continues to rise, which bodes well for activity in the coming months.” “The balance of sentiment making big-ticket purchases pushed into positive territory in August for the first time since early last year,” said Chief Economist Gregory Klump. “Recent cuts to mortgage interest rates will no doubt provide further support for this indicator, which is an important factor underlying the housing market.” The average home price in London is $213,376 compared to $210,888 in 2008. The best selling house style in London was the two-storey (159 units sold) with an average price of $309,691. In second place were 112 bungalows sold with an average price of $163,135. There were 77 ranch style homes sold in the London area with an average price of $255,435 followed by 66 townhouse condos with an average price of $147,998. Houses and condos in the London and St.Thomas area continue to maintain their affordability compared to other major Ontario and Canadian cities. For example: Calgary was $380,489 Durham Region was $275,114 Edmonton was $320,164 Hamilton-Burlington & District was $286,554 Kitchener-Waterloo was $271,289 Ottawa was $301,684 Toronto was $386,540 Greater Vancouver was $574,061 So overall what does this all mean? London and area does not experience the highs and lows as other major cities and still offers the best bang for the buck. If you would like further details or a breakdown of neighbourhoods in London, or what a 2 storey house with 4 bedrooms, 2-3 bathrooms, 2 car garage, finished basement, grey brick, brass door knobs, brown shingles, hardwood floors, (you get the idea?) is worth or sold for, email me at ty@enveloperealestate.com or call me at 519-435-1600 and I’ll see that you get the information at no charge and without obligation

Over the weekend I was helping a client purchase a home and one of their concerns were some repairs that this home required. The estimated repairs were around $5,400 and I asked if they were aware of the home renovation tax credit and other incentives provided by various government agencies?

They were not so I provided them with a number and website to go to. And this morning, I went on a listing interview (which was successful) and in suggesting some minor upgrades which would maximize the selling price, my new clients were not aware of any incentives. Again, I gladly provided this information and thought I would write this blog to allow more home buyers and home sellers to become aware of these incentives. Briefly, the following will give a few examples:

Save up to $1,350 on home improvements purchased before February 1, 2010. This credit is provided by the Canadian Government and is based on elegible expenses for improvements to your house, condo or cottage.

Some of the eligible expenses you can claim:

. Renovating a kitchen, bathroom or basement

. New windows, doors or flooring

. Building an addition, garage, deck, shed or fence

. New furnace, fireplace

. New driveway or resurfacing

. New roof or re-shingling

. Landscaping

. Permanent swimming pools, in-ground and above-ground

. Fixtures blinds, shutters, awnings, lights, fans etc

For more information and forms, go to www.actionplan.gc.ca or call 1-877-959-1-CRA