Debbie Howell - Blog

Tips To Sell Your Home

debbie.howell@century21.ca — Thu, 04 Feb 2010 00:00:00 GMT

When you are ready to sell your house you'll want to make your home as marketable as possible. Here are a few tips:

Clean everything in and out of sight

With clipboard in hand, take a tour of your home. Take note of every opportunity to remove clutter and dirt. Rooms, closets and cupboards will appear larger and more inviting when you get rid of unnecessary stuff and tidy up what's left. Remove bulky or unused furniture and rearrange the rest to make the best use of space.

Most of us are pack rats, so apply the following test to every questionable item: Have I used this in the past six months, or will I need to use it soon? If the answer is no, throw it away, store it elsewhere or sell it in a yard sale.

Be equally aggressive in disposing of dirt. Pay particular attention to the two most important rooms in a buyer's mind: bathrooms and kitchens. And once you've removed all the dirt: keep everything clean, every day. You never know when the person who will ultimately buy your home will visit.

Repair as much as you can

During your home tour identify the things that are broken, cracked, stuck or just plain don't work anymore. These can include: leaky faucets, holes in window screens, stuck or broken windows, lights that don't work, doors that squeak or don't close properly, missing or broken cupboard handles, cracks in the walls and ceilings, and dozens of other "little things" you've been meaning to do for years. Now is the time.

Certain items, such as roof or basement leaks, must be repaired, along with any water damage. Electrical or heating system problems must be fixed. Some repairs, however, may not be necessary. Will that hairline crack in the driveway really make or break the sale? How about a chipped floor tile in the entryway? Some buyers will have their own ideas about how to deal with these problems. You may find it easier to adjust your selling price to reflect the cost of these repairs, rather than pay for them yourself.

De-personalize your home

Your house reflects you. It is decorated with your taste and your sense of style. Unfortunately, that heart-shaped table lamp your grandmother left you may distract potential buyers from seeing the home itself. Grit your teeth and store all personal items (framed family photos, trophies, etc.) out of the way.

If you have brightly coloured accent walls or heavily patterned wallpaper, consider repainting or wallpapering these areas with light, neutral colours that enhance a room's size and make it more flexible to receive any kind of furniture. Remove area rugs, light fixtures and other items that buyers might find too difficult to imagine in "their home", even if you were not intending to include these in the sale.

Beautify the house and yard

Peeling, dry paint is relatively easy to fix or replace and can make all the difference in your home's appearance. If your carpet or other floor covering is in really bad shape, consider replacing it. The same holds true for badly tattered window coverings such as drapes and blinds.

Outside the house, weed the flower beds, remove dead tree branches, keep your lawn well-mowed and edged, trim the hedges, rake the leaves, sweep the sidewalks, fix and paint the deck or fence, plant a few flowers and do anything else you can think of to enhance your home's curb appeal.

It may sound like a lot of effort, but these tips, and the assistance of a REALTOR^®, will help you sell your current home quickly so you can move on to your next dream house.

Home Ownership Incentive

debbie.howell@century21.ca — Tue, 05 Jan 2010 00:00:00 GMT

Home Buyer Tax Credit

The Government of Canada offers a non-refundable tax credit to help first-time buyers with some of their closing costs. This Home Buyer Tax Credit (HBTC) will provide up to $750 in tax relief on the purchase of a first home. The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15 per cent in 2009) by $5,000. For 2009, the credit will be $750.

To qualify for the HBTC, an individual must purchase a qualifying home and neither the homebuyer or the homebuyer’s spouse or common-law partner can have owned and lived in another home in the year of purchase or any of the four preceding years.

Arranging Your Mortgage

debbie.howell@century21.ca — Thu, 03 Dec 2009 00:00:00 GMT

Buying a home today is an extremely attractive proposition. Interest rates are at their lowest in decades and the housing market is full of homes to suit just about any budget or family requirement. Still, you'll inevitably have to deal with financing and this will mean taking on a mortgage.

Sorting through the numerous mortgage options available to today's home buyers can be intimidating for everyone from first-time purchasers to long-time owners. The rules seem to change constantly and there's a smorgasbord of terminologies to learn.

Nonetheless, you'll want to at least familiarize yourself with the mortgage process, how to arrange one and the different financing strategies involved.

First, it's necessary to know exactly which kinds of institutions will lend you money. Banks and trust companies lead the pack, but credit unions and private lenders also offer funds.

There's also an option to consult a mortgage broker. Brokers have access to a wide variety of lending sources, including domestic banks and trust companies, but they can also employ other alternatives such as pension funds, real estate syndicates and foreign banks.

You may also find yourself in a situation where you can 'assume' an existing mortgage held by the seller. Advantages of assuming a mortgage are that you can speed the buying process due to reduced paperwork and save money in lower legal fees and closing costs. A disadvantage is that the current lending rate may be less than that of the assumed mortgage.

Now that you have an idea who will lend you money, you'll need to know the different kinds of mortgages that are offered. The most common by far is the 'conventional mortgage.' Lenders will loan you up to 75 per cent of the appraised value or purchase price of the property (whichever is lower), and you must come up with the remaining 25 per cent yourself. Many people save specifically for this purpose, but in some cases, alternate or 'secondary' financing maybe available.

A 'high-ratio' mortgage is one alternative if you don't have the 25 per cent down payment. These are available for up to 95 per cent of the appraised value or purchase price of the property (whichever is lower) to a maximum set by government regulation. The proviso is that high-ratio mortgages must be insured, and the cost, from one to three percent of the mortgage amount, falls to you.

'Variable-rate' mortgages are usually offered for both conventional and high-ratio mortgages. Typically, your monthly payments remain fixed for the term, while the interest rate fluctuates with economic conditions. This means that if interest rates climb, you'll be paying more per month in interest. If rates drop, you'll then be paying more off your principal. Conversely, 'fixed rate' mortgages maintain the same rate of interest over the entire negotiated term.

There are some other concepts to become familiar with that will impact your mortgage and financial well-being.

Amortization refers to the time period in which the mortgage is assumed to be paid. A common amortization period is 25 years. This means interest and principal payments are set as if you were paying the amount borrowed over a 25 year payment schedule. Obviously, the shorter the amortization period, the less interest you will pay.

Prepayment privileges are very important for borrowers to consider. These arrangements allow you to pay money against the principal, reducing the total amount of interest you'll ultimately pay.

Open mortgages generally denote those that allow prepayment with few restrictions, while closed mortgages carry no prepayment options.

Don't be daunted by the many concepts and terms regarding mortgages. Arranging one isn't that difficult--all it takes is a little brushing up on your part and the experience and advice of a good REALTOR^® or mortgage professional.

Your Heating System!

debbie.howell@century21.ca — Mon, 02 Nov 2009 00:00:00 GMT

A heating system converts fuel into heat which then flows through a house. The efficiency of a heating system depends on the amount of fuel consumed to meet heating needs. Using less fuel means your system has increased its energy efficiency.

Check your heating system first
One way to maximize output using the least amount of fuel is to reduce air leakage. Before deciding to replace or upgrade your present heating system you will have to consider how much of your present system can be saved. Can the boiler or furnace be salvaged by tuning or retrofitting? Are the heating ducts or water distribution pipes in good condition? Heating system work can be very inexpensive or quite costly depending on how much efficiency you want to buy.

Oil and gas fired furnaces require a constant supply of air to operate, because fire needs oxygen to burn. Air is also needed to exhaust the products of combustion up the chimney. Sometimes a furnace may become starved for air because household air is being rapidly expelled from the house through other routes such as a roaring fireplace, an upper-level window left open, a clothes dryer or exhaust fan left operating continuously.

An air-starved furnace can cause carbon monoxide to buildup in quantities that can be dangerous.

Warning signs of inadequate ventilation are stuffy atmosphere, lingering odors from in complete combustion, back drafts and smoking fireplaces.

Additional ventilation can sometimes be required in houses with heating systems that require little or no indoor air, electrically heated homes, homes with chimney-free condensing furnaces, or houses with a fuel burning furnace enclosed in a room with air for combustion from the outside. Furthermore, super energy-efficient houses usually require special ventilation.

Improve heating efficiency
If you decide to change your system, you'll have to consider what type of fuel you want to use. Cost and availability of fuel is usually the deciding factor. If you're keeping your present system, here are a few ways you can improve its operation.

Turning down the thermostat is a good way to save heat. There are several brands of programmable thermostats on the market today that will regulate your home's temperature.
Hot air ducts are notorious wasters of heat and money. If your basement feels too warm, too much heat is probably seeping out of your ducts. You can seal all joints and seams in the ducting with vinyl duct tape. Some ducts registers empty into the basement and these should be sealed or closed if they are not needed.
Ducts that run through unheated basements or attics should always be insulated. Fibreglass batting or commercial duct wrap can be used.
Make sure both return air grills and supply registrars are kept free from any obstruction, including drapes and furniture. With forced air-systems, the furnace filters should be changed regularly.
With hot water systems, the exposed accessible heating pipes should be insulated with flexible foil- faced fibreglass at least 19mm thick. A rigid, foil-faced insulating board between the wall and the radiator will reflect much more heat into the room.
Some old hot water systems rely on gravity to circulate the water, and adding a circulating pump to the system can lead to potential fuel savings of as much as 30 percent.
If there is an aquastat on the boiler, (a water temperature control) the water temperature can be reduced to about 49 Celsius of 120 Fahrenheit during warmer parts of the heating season. This reduced setting will prevent overheating your house in the spring and fall.
A more expensive option is to install an automatic aquastat to reduce water temperature as the outdoor temperature rises. (If your boiler is made of stainless steel, or if your main boiler also heats your domestic hot water, you shouldn't reduce the water.
"Downsizing" your oil furnace can reduce fuel bills by seven to 10 per cent. Downsizing means reducing the firing rate by changing the burner nozzle to a smaller size.
Retention head burners that can save as much as 20 to 25 per cent of your fuel can also be added to some furnace units. Retention head burners mix the air and oil spray very quickly which permits the combustion of oil with less air. Less air entering the burner means that less heat escapes out the chimney.

If you think you might be having problems with household air supply, contact a registered heating contractor for advice. If the problem turns out to be inadequate air supply, the contractor will be able to find ways to bring in outside air. There are specific requirements for this which depend on the type of system you have.