Canadian Realty Holding Its Own

The annual winter lull in the real estate market means that the time is good for prospective buyers who like to take their time. With Canadian unemployment at a 33 year low, the realty market looks like holding strong.

It is difficult for many of us Canadians to accept that while the US realty market may be floundering, the Canadian market is steady. In fact, due to the strength of our dollar and the weakness of the US dollar against International currencies, many Americans are actually buying into Canada to preserve their funds.

While coastal and lake areas would seem an obvious choice for American speculation, many are buying properties simply as an investment project. Renting a condo is one of the easiest way to make money and have the property 'buy itself', and condo sales everywhere have jumped as people are realizing the enjoyment of life without maintenance!

Condominium prices in Ottawa have been climbing upwards all year, with an increase of 7% over this time last year. The strong job market was partly the cause of this. The increase in national employment has marked the 15th. straight year of national employment growth.

In Calgary, condos are also a good investment and offer a reasonable price range if you are trying to get started on the property ladder. The increased inventory of all properties has slowed the market at the moment, so now is a good time to look for a condo. Some builders have even dropped their prices, so brand new ones can be snapped up by the shrewd buyer.

Despite the changes emanating from the famous revisions to the oil royalty revenue, Calgary has a strong economy and has seen a large population increase. According to one national forecast, it is poised to experience moderate growth and a sustainable real estate market though 2008.

Average house prices in Calgary are set to increase by 4% and in a slower moving market, first time buyers may be encouraged to put their toe in the water.

One of the mandatory requirements for a mortgage for first time (or any other) buyers is a good credit rating. If there is no credit rating recorded against you then apply to a bank for a credit card. They may require you to deposit $500.00 or $300.00 and then you will be required to leave that untouched in the bank as security.

By using your card every month, and paying it every month - on time, you will begin to build up a good credit history. Of course, other data is required by a lender. You will need tax forms showing your income and a letter on headed notepaper from your company stating your earnings.

It is always advisable to get "pre-approved" before looking for a house. This means you sort out the finance before checking out the realty. If you proceed in this order, you will know if you have to save more money for the down-payment, or which price range you can look in when choosing.

Things often 'heat up' in the housing market in the spring, so now may be a good time to invest in some Canadian realty.

Buying A Home – Zoning and Architectural Review Board Restrictions

When you buy a home, you need to be aware of the various things that can limit your control over the property. This is as true for finished lots and single family homes as it is for townhouses, condos, and apartments. It’s a good idea to understand these limitations before you buy, so that you can decide whether you’re willing to live with them or not. After you buy, it’s too late; you’re stuck.

Zoning

In most jurisdictions, zoning limits how a piece of property can be used. There are many variations of residential zoning. In some, no business activity is permitted. Some allow business activity but no signs. In some, no commercial vehicles can be parked regularly.

Some residential zones permit only a single dwelling per quarter acre, per acre or per ten acres. Most limit the owner’s ability to subdivide land. Some allow only single family dwellings while others allow high rise apartments. Still others allow apartments, but limit the height of apartment buildings. Many do not allow mobile homes.

Some jurisdictions have “overlay districts” in addition to zoning. These are common in areas with many older buildings and a community desire to preserve them. Additions to homes of this type are obviously restricted, but restrictions regarding the location, style, height, and even whether they’re allowed at all or not, also applies to fences, sheds, walks, gates, and similar ancillary structures.

Fredericksburg, Virginia has a forty block “historic district.” Residents of this area must follow normal zoning rules. However, they must also submit an application to the Architectural Review Board for any changes to the visible exterior of their homes. This can be a surprise for some new homeowners in the area.

You can find detailed information about zoning, overlay districts and the like fairly easily. Simply visit the courthouse for the county in which the property is located or ask your real estate professionals for assistance.

Buying A Home – Rain, Sun, and Weather Issues

When buying a home, it can be easy to overlook year-around weather issues. You may think you are purchasing a home in a sunny area, but come to find there is always a heavy cloud cover. This is just one of a number of weather issues to consider when selecting your dream home.

Clouds…Rain…Floods

If you must have a sun deck as part of your new home, you better make sure it is going to be sunny! Just because a general geographic area has a lot of sun doesn’t mean your home will. Things to look for include fog and heavy cloud cover for a home in a valley. If the home is located on the side of a hill or valley, make sure you know when it will get sun and shade. Temperatures can be radically different depending upon the amount of sun you get.

When it rains, it really pours! One potential nasty surprise for new homeowners can be the condition of a neighborhood after it rains. In San Diego, for instance, the total rainfall averages roughly 12 inches a year. Despite this low total, there are certain beach communities that grind to a halt because of flooding issues. Even an inch of rain can flood streets to the point that you can’t drive at all. Make sure you stop by a gas station or local store to ask about flooding problems in the area.

I have been known to enjoy a good boating trip and perhaps you have as well. I am pretty sure neither of us would enjoy it in our house. Still, millions of people a year buy homes in flood plains without even knowing it. Eventually, this can lead to a disaster when heavy rains come and you find out the reason they call it a flood plain.

Unlike streets with bad drainage, floods are much more damaging. When a river overflows, flood levels are typically measured in feet. Can you image the effect on your home of a flood that reaches five feet in depth? Well, you probably always wanted to renovate the first floor of your home.

Mother nature has a way of doing whatever she wants. Make sure you avoid her grumpy spells by looking into the effect of weather on your prospective dream home.

Buying: Knowing The Area

One of the most important aspects of any home that you move into is, without a doubt; the area. Homes may look fantastic online, but there is always the possibility that the area this fantastic home is in may be less than desirable. Before you move to any new town, subdivision or city, its a good idea to do a little research and find out as much as possible about the place that you are considering calling home. The logical place to start asking questions is to your realtor. Whether you are moving from a distance away, out of state or even out of country you may want to try to find a realtor that specializes in the area that you are interested in. Realtors are a great source of information and usually they know more about a given area than just about anyone.

In finding out about a new area there are some definite things that you will want to find out about. Start by finding out about the area itself. Is is an industrial town? Tourism Based? What kind of atmosphere can you expect when moving there? The next things that you should consider are the employment market and the education system. It's always comforting to know what kind of job environment is in the area you are moving to. Is there room for your career to flourish? Additionally, even if you do not have children, knowing the education system is just a good idea. It is one of the things that people usually consider important in a new town, and if you have to move again; a home in a good education district will fetch a higher price.

Try to find out what the future hold for the area too. This can usually be accomplished by talking to your realtor, but also seeking info from the city itself. Find out if there are any development or expansion plans for the area. Things like proposed developments, both residential and commercial can drastically effect your property values. You will always be well served to stay cognizant of the future of any area that you move to. Keep in mind that potential developments and future plans can make or break an area, so the more info you have at the beginning the better.

Being Comfortable With Your Home Purchase

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Let's get down to brass tacks with the home buying process. You as a buyer are spending a lot of money and have the right to be comfortable and happy with your purchase right? Of course you do. So essentially the question is what needs to be done in order to ensure that this is so? Well, probably the most important things is communication. It's a good idea to remember that your realtor is there for more than simply helping with some contracts. Your realtor is your info source of information on anything that you might not know or be familiar with. The more you communicate with your realtor the smoother this process will be.

Another way to ensure that you are completely happy with the home that you have bought is to never settle for anything less than what you need. This happens a lot when buyers are too eager to purchase quickly and in that quickness, things get overlooked. Remember that this is going to be your home, take the time to learn everything you can about the home in question. Does it have enough room for you and your family? Is there some extra room in case your family grows? Forward planning is an essential part of buying a home, and should never be overlooked.

When everything is said and done you should be left feeling like you have made the most intelligent purchase of your life. You should also have a financial arrangement that fits your lifestyle and payment abilities. In order to make this happen you need to be in complete control of your financial life, you should have your credit completely sorted out and dealt with so that there are no bridges that have to be crossed in order to secure the necessary funds for the purchase. Follow the advice of your realtor and the process should be a lot more fun than it is stressful.

Beware of Being Fooled By Home Staging

According to a report just out, it is too easy to be fooled by home staging. Home staging is a term that we are gradually becoming familiar with. It is the idea that we try to create the best impression of our home when selling the house. It used to be just run the vacuum over it and do the dishes but nowadays there is a whole set of rules to follow!

The idea is, that a staged home stands out from all the others and therefore gets sold more quickly. It certainly can be carried to extremes with reports of sellers hiring storage units to cart their junk off to. Larger items of furniture are encouraged to be put into storage by professional 'home stagers' so that the house looks bigger and more spacious

Another instruction is to remove anything personal like photographs, so that the prospective buyer can visualize the house as their own. Closets are de-cluttered so that they look more spacious and all bathroom paraphernalia is supposed to be gone from the counter top! Garbage bins are even removed and hidden from sight.

However it has been suggested that home staging can also be deliberately used to hide a multitude of sins!

The National Association of Exclusive Buyer Agents (NAEBA, who solely represent buyers in the realty business) has suggested that as much as 82% of buyers are sidetracked from the important issues by a well-staged house. This organization also concedes that home staging nets more cash and faster sales - so it works!

Some of the underhand tricks used in staging can include using smaller furniture to make a room look larger, placing rugs over damaged parts of the floor, or using curtains to hide rotting sills. Also specified is the practice of putting a cheap paint job on to cover defects. Your realtor is legally obligated to let you know of any defects, but only if he actually knows about them!

Buyers are urged by the NAEBA to be cautious and to remember that when the house is sold, the stage is taken away. The tricks of home staging do not improve the floor plan, or the square footage of the home or the quality of the neighborhood, and these are the qualities that you will be re-selling at a later date.

Buying a Home -- Is a Home Inspection a Good Idea?

To avoid “buying a pig in a poke,” buyers have long demanded the closing on a home purchase be contingent upon a satisfactory inspection by a home inspection firm. In many parts of our country, we’re now experiencing a strong sellers’ real estate market and sellers often receive more than one purchase offer on the same day for their home. In this environment, buyers are rethinking the home inspection requirement. Is this a good idea?

To Inspect or Not To Inspect

Clearly, if a seller got two offers and one requires a home inspection be done, most sellers will choose the non-inspection offer with all other things being equal. So, a home inspection requirement can put you at a competitive disadvantage. Still, are you willing to risk purchasing a home that has some fundamental, expensive problems? What if you purchase the home and subsequently learn plumbing under the floors must replaced? What if the repair costs $10,0000?

One option may be to include a provision in your purchase offer that provides for a home inspection done for informational purposes only. That way, settlement under your offer is not conditioned upon the inspection. It would not provide you with the option of amending the contract to have the seller make repairs, nor would it provide a way for you to void the contract should serious problems be uncovered. Should serious problems be discovered, however, the seller is bound to know the deal will be in jeopardy. For that reason, even an “informational” home inspection won’t look as good to her as a contract with no requirement for a home inspection.

Another option you might consider in lieu of a home inspection is a sub rosa inspection. Instead of using James Bond for spying, you could ask a friend working in the construction or engineering field to walk through the house with you. The goal, of course, is to look for any glaring “red flags” that are deal killers.

If your friend doesn’t see anything disturbing, you can then write a clean contract offer without contingencies. Sellers love no contingency sales. The chances are good that you’ll get the home you want, but still have a some assurance there isn’t anything seriously wrong with the property.

There is no one right answer when it comes to deciding on home inspections. Each buyer has to ask himself how much risk he is willing to take. If you are the only party making an offer, demand an inspection. If you are one of many potential buyers, well, you are going to have determine your comfort level. Others can provide information, but the decision is yours.