Brisk Real Estate Resales Heat Up Housing Market

Members of the Ottawa Real Estate Board (OREB) sold 1651 homes in June 2007, compared with 1855 in May 2007. There were 1600 sales in June 2006.

"Homes are still selling at a brisk pace, spending an average of just 34 days on the market before being snapped up," says OREB's president. "With more than 8000 homes sold already in 2007, the resale housing market is on track for another record-breaking year. It's also interesting to note that condo sales continue to drive growth – that segment accounts for the entire difference between sales in June 2006 and June 2007, making it clear that condos are still a hot commodity in Ottawa."

The average price of homes sold in June in Ottawa was $279,429, an increase of 7.8% over June 2006. A total of 8526 properties sold on MLS® in the first half of 2007, compared with 7986 during the same period in 2006.

Source: OREB

Mortgage Insurance Change Makes Home Buying Easier

Bill-C37, a federal law that came into effect earlier this year, lowers the level where mortgage insurance is required, and bankers say the change could save many would-be home buyers $2000 or more.

For the past 40 years, home buyers have been required to buy mortgage insurance from CMHC or another insurer unless their down payment equalled at least 25% of the purchase price. The new law cuts the requirement for mortgage insurance to purchases with a down payment of less than 20%.

Based on a home price of $300,000, a buyer with a 20% down payment can save about $2500 on insurance premiums.

Source: CBC News

Top 10 Most Common House Paint Problems and How to Fix Them

Spring is here and fixing up the exterior of your home is probably on the "To-Do" list. But before you pick the house colours, learn to read the symptoms exhibited by your existing paint failures so you know how to fix them BEFORE you invest your time and money. About.com's Bob Formisano has assembled 10 of the most common paint problems you'll find around the house and provided photos of each one along with symptoms, causes and repair techniques. You might want to take a look at this website link.

Source: Acker Home Inspection

Repairs Are More Than Just A Facelift

Here are the most common fix-ups for sellers according to the Ontario Association of Home Inpectors (OAHI). All are relatively low cost and many are safety items. Most are also expected in any home no matter what the age and would increase or at minimum guarantee fair market value if completed.

• Fix any basement cracks & get a warranty – especially when the inspector tells you it has leaked – no matter how much over how many years!
• Extend the downspouts to discharge water well away from the home.
• Prep and paint the exterior wooden trims/frames/doors, etc.
• Put a handrail where needed.
• Make sure the smoke alarms test and work properly and are on every floor.
• Repair or replace the defective GFCI outlets.
• Upgrade to a 100 amp electrical service with a combination panel and breakers.
• Do a roof tune-up or get a new roof.

Source: OAHI

Pre-listing Inspections May Simplify Negotiations

Home inspections used to be initiated almost exclusively by the buyer in a real estate transaction. However, pre-listing inspections, paid for by the seller before a house is put on the market, are becoming an increasingly popular way for sellers to try to reduce the possibility of last-minute surprises and create a marketing edge.

A pre-listing inspection may lead to a house selling without conditions. It can be a great learning tool for your REALTOR® to help him speak more knowledgeably about the house he is trying to sell, and it can help the seller prepare the Seller Property Information Statement (SPIS).

"The pre-listing inspection (PLI) is advantageous to sellers, buyers and REALTORS® as it can help establish a fair price for that home in that location in today's marketplace," says Andrew Dixon, President, Ontario Association of Home Inspectors (OAHI). "A PLI can help the seller and their REALTOR® by identifying areas where improvements and maintenance may be beneficial and/or necessary. A buyer can purchase with the confidence of knowing that the home has been inspected by an unbiased professional whose primary responsibility is the state of the home and its systems."

According to OAHI, any home inspection including a PLI is concerned with the defects and lifespan of the systems of the home. The PLI report should include all the major defects and the minor defects that could develop over time into major defects (either structurally, monetarily or safety related). The inspector should provide justification for most items identified such as pointing out what needs attention to avoid premature deterioration.

While thorough, the PLI doesn't comment on the aesthetics or curb appeal of a home. The fact that the carpet is stained is not going to show up in a PLI. Pre-listing inspections are concerned with the nuts and bolts of a house. For example, does the roof keep water out, do doors and windows operate properly, does the furnace keep the house warm and the air conditioning keep it cool and do the plumbing and electrical systems do what they are supposed to do?

Listing agents can add value to their services by suggesting a PLI and helping clients to find a qualified home inspection company to conduct the pre-listing inspection. Sellers should identify their expectations and ask the inspector if they can be met. Sellers should require a thorough but impartial inspection of the home, clearly identifying concerns with recommendations as required.

Even if sellers decide not to make any of the suggested fixes, a pre-listing inspection can still prove beneficial by allowing sellers to obtain cost estimates for needed work, so they can offer potential buyers an appropriate discount off the list price.

Source: OAHI