In our Guelph Real Estate market we see a wide variety of issues that come up on home inspections. Here are the top ten issues identified by home inspectors .

1) Poor Drainage Around the Exterior of the Home

A house should have positive drainage around the foundation, meaning the ground and all downspouts slope away from the home. Watch out for hard surfaces, for example a concrete patio meeting a concrete foundation wall. If the joing between the two are not sealed, there’s only one place for the water to go, down the foundation wall and eventually into the basement. The easiest way to address these common issues, are minor landscaping changes to direct the water away from the foundation walls.

2) Faulty Wiring

This is mostly found in the homes of weekend handymen. Things to watch out for are loose or hanging wires, inoperable or missing GFCIs, reverse polarity and improper use of electrical cords (i.e using them as permanent wiring instead of temporary). Other common wiring issues are older aluminum wiring and knob and tube. Both of which can make it difficult to get insurance.

3) Roof Leaks

These are mostly caused by 2 issues; end of life (most asphalt roofs last 15-25 years) and improper or deteriorated flashing. Any protrusions or change in slope of a roof is a potential issue. Make sure your home inspector actually goes up onto the roof. It looks very different than the view from the ground.

4) Old or Unsafe Heating Systems

To avoid this problem, the furnace should be serviced regularly. The lifespan of a new high efficiency furnace is about 20 years. The most common problems with furnaces are cracked heat exchangers (which aren’t always visible to the naked eye) and improper exhausting.

5) Home is Poorly Maintained

Poor maintenance is a sign of other potential defects that may be found including furnace, air conditioner, gutters, indoor air quality and mold.

6) Minor Structural Issues

All homes will have minor cracks in the walls, basement and garage floors. What is important is the degree of damage. When you see displacement (major cracking of the bricks) or bowing of the walls, these are usually indications of other major structural problems. Horizontal or large cracks may be caused by support beams being cut or missing support posts. Further investigation would be necessary to determine the exact cause and extent of damage

7) Plumbing Issues

Older homes may have lead or galvanized supply lines. Lead in drinking water can be especially dangerous for pregnant women and children. Lead supply lines are soft and light grey in colour. Galvanized water lines were used prior to the 60′s. The problem with galvanized pipes is that they corrode and only have a lifespan of about 50 years so they are all at end of life now.

Copper has been used for many years for water lines and waste lines with relatively few issues. Today we also see a lot of plastic supply lines. PEX (one brand of plastic pipe) pipe is a flexible plastic pipe available in 3/8-inch, 1/2-inch, 3/4-inch and 1-inch diameters and is used for hot and cold indoor plumbing (instead of copper or galvanized pipe) and for radiant floor heating.

A recent product which has caused considerable problems is KITEC plumbing which is easily identifiable by it’s blue and orange plastic pipes. KITEC was recalled in 2005 due to corrosion problems with the fittings. It will cost $6000-$8000 to remove and replace KITEC plumbing in an average home. There was a class action lawsuit dealing with KITEC and a settlement has been reached to compensate affected home owners.

Finally, in addition to glavanized pipe, another form of waste pipe commonly seen is cast iron. This was used up to the 1950′s. Cast iron waste piping generally fails in one of two ways; it can rust through, and it is also prone to splitting along a seam, particularly on horizontal runs.

8)Home’s Exterior Permits Water Entry

This is generally caused by windows and doors installed without proper thresholds and caulking. It can also be caused by improper grading. The results can be mold as well as structural damage to framing members.

9) Inadequate or Poor Ventilation

When homes were not so air-tight we used passive ventilation systems (meaning there was no actual venting but there were enough air leaks through windows and walls). In these homes there are often no fans in bathrooms or kitchens.

With homes being built very air tight in order to increase energy efficiency, it is important to ensure good air quality is maintained. To achieve this we now see more HRVs (Heat Recovery Ventilators). HRV systems are fully ducted systems which exhaust stale air out of the home and replace it with fresh air from outside. Typically, an HRV is able to recover 70 to 80 percent of the heat from the exhaust air and transfer it, via a heat exchanger, to the incoming air. Most new homes are being built with them but you can also retrofit one into an existing home.

10) Environmental Issues

These include such things as asbestos, underground oil tanks, radon etc. The degree of area affected is as important to determine as what if anything to do about it. This is a homeowner’s call and their aversion to the issue has to be considered when determining remediation of these issues.

 

 

Guelph Real Estate | Century21

Kitchens Sell Homes

It’s a tool used by house flippers all across the nation. Stagers know its power. Real estate agents push its importance. What is this not-so-well-kept secret of real estate? A kitchen can sell a house.

A kitchen is the heart of a home.

This is true all across the globe. The old saying that the “stomach is the way to the heart” carries a lot of truth. Kitchens are where we spend much of our time and most of that is with our families. It’s the room where we nourish our bodies and our spirits.

Kitchens are integral to entertaining and in today’s age of open floor plans, they’re a focal piece of many family rooms. It’s because of this that kitchens play such an important role in the buying and selling process.

This one room is the showpiece of the house. You’ll see it every day and your guests will see it during most visits. This means buyers want homes with up-to-date kitchens.

Kitchens, however, can be one of the most expensive rooms to renovate. These projects can also be the most labor and time intensive of all home renovations. It’s not just a new layer of paint.

Instead you find a complicated array of flooring, tiling, cabinets, and counters. This means buyers may want a home with an up-to-date kitchen but they aren’t willing to tackle this problem themselves. Most buyers want a kitchen that is ready to use the day they move in.

What do buyers look for in up-to-date kitchens?

A lot of this depends on what price range your home is in.

The main thing to remember as a seller is to not price yourself out of your market. If homes in your neighborhood are selling for $100,000 with tidy, but not luxury kitchens, then this is no time to upgrade to granite, travertine, and marble at the price tag of $40,000+. You simply won’t find a buyer.

Scope out the competition. Use open houses in your area or MLS listings to find out what your competitions’ kitchens look like.

Do area homes have new solid wood cabinets and granite counters in today’s designer colors? You’ll be wise to consider making the same move. Are they including new stainless steel appliances and add-ons like dishwashers, wine-coolers, and trash compactors?

Are you in a higher-end neighborhood? It’s time to think high-end. Your older home may have a highly functional kitchen, but a buyer will take one look at your formica counters and white appliances and become lost in the stress of how much money and time it would take to remodel. If you don’t want to put in the time yourself to make upgrades then you’ll have to make concessions in the price.

Don’t become overwhelmed, though. Sometimes a kitchen update can mean doing just a few minor changes. Change the paint color to a warm, neutral tone. Get rid of any clutter. Update your appliances, paint your cabinets, change the pulls, or get a high-end looking counter for a fraction of the cost (faux-granite or lower end granite). You might even save a bundle by doing much of the work yourself.

The bottom line is a kitchen can sell a home. Do a little research and find out what your kitchen needs to make it competitive with area listings.

Published: January 24, 2012 by Realty Times – Kitchens Sell a House.

Guelph Real Estate | Century21

Competition among mortgage lenders is fierce and shopping around can save you thousands.

Coming up to renewal time? Now is a great time to look at the many innovative options and competitive rates available. The mortgage environment is always changing – if you’re in the last year of your mortgage, it’s not too early to talk to a Mortgage Professional about what the next few months will bring.

When a term is coming to a close, most banks will send a mortgage renewal notice in the mail usually one to two months prior to the term expiration. Unfortunately, the banks only tend to offer you their posted rate with very little or no discount and only have one financial product to sell: their own. Almost 60 percent of people renewing their mortgage, sign this renewal without researching what the competition has to offer. At CENTUM, we’re here to offer you advice so you can take advantage of the competitive mortgage market.

Finding the Best Renewal Rate for Your Mortgage

With the wide assortment of options and features available today for a mortgage renewal, shopping around takes significant time and effort. The mortgage process can be intimidating to many Canadian homebuyers and it’s wise to begin with some advice from a professional.

Finding the right mortgage for you is our business. We know which lenders have the best rates and we negotiate with multiple lenders at one time. What’s more, we know the system and have the industry knowledge required to present a proposal for financing to lenders to successfully obtain mortgage financing, and we do all the paperwork.

Guelph Real Estate | Century21

Rental housing bylaw defanged

By Doug Hallett Guelph Tribune

City hall is losing one of three main weapons in its struggle to protect neighbourhoods by controlling shared rental housing, and the president of the Old University Neighbourhood Residents’ Association is dismayed. “I think it’s unfortunate that so much effort will come to naught,” Daphne Wainman-Wood said Tuesday.

She cited work done “over many years by many parties” that led to a zoning bylaw amendment being passed in September 2010. It was repealed Monday by city council. It had been part of a concerted effort at city hall to deal with community concerns related to off-campus university student housing.

Council’s decision to repeal the bylaw, which a couple of landlords had appealed to the Ontario Municipal Board, came after it received advice from city lawyers behind closed doors prior to Monday’s council meeting. The advice related to human rights concerns about the zoning bylaw amendment. After the meeting, Ward 5 councillor Leanne Piper said the Ontario Human Rights Commission got involved in the case amid concerns that Guelph’s zoning change could affect new Canadians, who often live in multi-generational family arrangements in one house.

The zoning amendment’s effect on multi-generational family arrangements “was an aspect of the zoning bylaw that we had not considered when we deliberated on shared rental housing,” Piper said in an interview. 

Wainman-Wood said she wished city hall had vetted its plans for changing the zoning bylaw with the Ontario Human Rights Commission earlier. “It’s also unfortunate that our urban environment, our cities, don’t have the ability to control their own domain, and it’s being increasingly prescribed by the province,” Wainman-Wood said in an interview.

As well as repealing the zoning bylaw amendment, a special resolution passed by council Monday directs city staff to develop a licensing program for shared rental housing “for council’s consideration, including consultation with the Ontario Human Rights Commission.”

There was no debate during the public part of the council meeting on the resolution, which passed unanimously.

Among other things, the zoning bylaw amendment that’s now been repealed imposed a 100-metre separation for two-unit properties – residential dwellings with accessory apartments – with a total of more than five bedrooms. It called for such houses to be at least 100 metres from any other accessory-apartment building of similar size, or from a lodging house or group home.

A 100-metre separation rule for lodging houses, which has been in effect for years, remains in force, Piper said.

City staff recommended in 2010 that city hall deal with concerns about shared rental housing in three ways – through zoning changes, a licensing program and increased enforcement of various city bylaws related to housing.

Now that the city’s zoning amendment has been repealed, it leaves licencing and enforcement as the main tools the city can use, said Piper. She has been heavily involved in city hall efforts to reduce the impact of off-campus housing on the stability of neighbourhoods in certain parts of the city.

Guelph can look at licensing programs for shared rental housing used in such cities as Waterloo, London and Oshawa and “learn from their experience” as it prepares its own licensing program, she said.

Licensing accomplishes things that zoning changes can’t, including providing for inspections related to fire and building codes to ensure landlords comply with safety regulations that protect their tenants, Piper said.

In June 2010, council passed an interim control bylaw that prohibits the development of any new shared-rental housing on residential property in Ward 5 and east of the Hanlon Expressway in Ward 6.

This freeze on creating accessory apartments and lodging houses was supposed to last only one year, giving the city time to change its zoning bylaw. However, because the zoning bylaw amendment that passed three months later was appealed to the OMB, this interim control bylaw has remained in effect.

The special resolution passed by council Monday says the interim control bylaw will be repealed at a future meeting of council.

The OMB appeal has cost the city about $57,000 so far, and ending the appeal now will save the city $200,000, according to a fact sheet distributed by city hall after council’s decision Monday.

Guelph Real Estate | Century21

Small Spaces Can Offer Big Savings on Monthly Expenses

High home prices are putting pressure on many first time buyers to seek smaller spaces to save on monthly mortgage payments.

Not all small spaces are created equal; it is important to define your lifestyle needs in addition to square footage when determining monthly payments. What are some features of small spaces that can help to reduce your monthly housing expenses?

The 2011 AVID Design Driver survey is a popular annual report on trends in home buyer preferences, geared towards the building industry. Key findings in this report also offer insight into how home buyers can save money and maximize use of space. 

Here are four desirable housing features mentioned in the report that could improve your bottom line simply by design.  

Energy Efficiency

High fuel and utility costs can shrink your disposable income. Energy efficiency in heating, cooling and household appliances is increasingly becoming a crucial home design feature. Buying a condo or apartment that is built for utmost energy-efficiency is not only good for the environment: it’s good for your pocketbook.

 

Functional and Space-Saving Design

First time buyers are increasingly squeezed by the price per square foot of homes, especially in urban centres. But some designers do a great job of making the most of smaller spaces and leaving nothing to waste. A home that makes every inch of space functional for work, rest and entertainment can give you the feel of a larger home for less money.

Entertainment-Friendly Kitchen

Whatever the size of the space, a well-designed, large and open kitchen is a perennial standout for home buyers. An attractive kitchen space will likely encourage you to eat and socialize more at home instead of draining disposable income by dining out. It’s also a good resale investment.
 
Convenient Location

Residential buildings located close to bike and walking routes, shopping and work hubs encourage you to leave your car at home, which can help you to save thousands of dollars annually on vehicle maintenance expenses and fuel costs.

A potentially costly mistake to avoid as a first time home buyer is to rush in to a purchase without first considering your lifestyle, existing monthly expenses and debts, as well as personal plans for the future. Don’t be swayed by attractive selling features that don’t suit your needs or are beyond your affordability ceiling. 

Guelph Real Estate | Century21

What Every Home Buyer Needs to Know About Mortgage Protection Insurance

If you’ve ever bought a home, you’ve probably been there: you meet with a lender to sign your mortgage documents and he or she offers you mortgage protection insurance. It can be as simple as ticking off a box and signing on the dotted line to accept the premiums and insure you and your family against death, disability or other catastrophic event that might leave you unable to make your mortgage payments.

But are those premiums competitive?  How much will you pay annually for what type of coverage; and what is written in the fine print?

Lending institutions ancillary mortgage products are not the only ones on the market. Independent insurance companies also offer varying types of mortgage protection that can save consumers hundreds of dollars annually.

This month, CENTUM announced an arrangement with Benesure Canada Inc., to make its Mortgage Protection Plan coverage available through participating CENTUM mortgage broker offices and franchises. The plan was first made available to clients of Canadian mortgage brokers in 1995 – today it insures more than 160,000 Canadians.

Says Paul Therien, Director of Business Development for CENTUM, “Mortgage protection is an extremely important part of every transaction and warrants an ongoing review of the best products out there. Based on what we think is the best fit for CENTUM and our clients, we chose Mortgage Protection Plan to recommend to our people.”

Whichever mortgage insurance plan you select, it’s good to know that even with mortgage protection insurance, there is competition. There is nothing stopping you from shopping around for the best mortgage protection for you with the most affordable premiums - the same as you would for any product. 

Guelph Real Estate | Century21