What the Ottawa Home Inspector Saw - Foundation Crack

At a recent inspection, the home inspector found loose parging on a spot on the outside wall of the foundation.  The parging came away from the wall with a touch and behind it was a visible crack in the concrete foundation.  The next step was to check inside the house to see if the crack was through the concrete, the size and length of the crack and if any repairs had been made.  There was no declaration on the Seller Property Information Statement that a foundation crack existed so this was a surprise discovery.

When we got to the basement, we had to unload a shelving unit and pull it away from the wall.  There behind the unit was a visible crack that had been filled.  The house inspector suggested that we, the buyers and I, check with the owner, through his realtor, to see if there was any knowledge of the crack, and experience of water in the basement near the crack and if it had been professionally repaired.  If professionally repaired, was the warranty still in existence and was the warranty transferable.  The inspector then suggested that, if we were not satisfied with the information, to call one or all of three suggested concrete foundation companies and get a verbal estimate.  In doing so, we found out that repairs are generally $750 to $1,000 plus GST and include a 10 year warranty against water leakage.  

According the building inspector and the companies, foundation cracks are very common, repairs are called for as prevention and that the warranties are almost always provided.  It was reassuring to the prospective buyers to get this information.

Some foundations are not all they are cracked up to be. 

 Photo credit:  house_small_foundation_crack-45 @ http://www.flickr.com/photos/clintjcl/90505431/

Valerie Zinger ~ Ottawa, Ontario ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca

Buying a House with an Oil Fuelled Furnace

If you are looking at homes in older neighbourhoods such as the Glebe, Old Ottawa South, Alta Vista and Centre Town/ Golden Triangle, you might find a home that you want with an oil fuelled furnace.  Oil fuel, unlike gas, is trucked to the home and a tank is normally located in the basement where the fuel is stored.  In the past, the tanks were buried outside.  This is now illegal and very costly to remove.  Most homes have had the tank removed and an interior tank installed.

Many people have grown up with oil fuel and have no concerns.  Others find it unsettling to have to remember to have the tank filled and to have a tank of oil in the basement.  With the cost of oil increasing substantially, there are buyers who are planning to convert to gas. 

If you are buying and plan to convert to gas immediately, this reminder is for you.  Ensure that your offer to purchase the home includes the instructions that the owners are NOT to fill the tank before possession.  As a buyer, not only would have to pay for the full tank, as part of the adjustments, but then you will have to pay an additional $500.00 (approximately) to have the tank drained and removed. 

If gas lines have not been run into a rural community, oil is one of the most common heating fuels.  Conversion is not possible until the gas lines are installed. 

Talk to plumbing and heating specialists to find out what kind of furnace is best for you and your heating needs.

Photo credit:  58 E. Mountain Street @ http://www.flickr.com/photos/richspk/2579445904/

Valerie Zinger ~ Ottawa, Ontario ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca

Selling or Buying in Ottawa - How to avoid unwanted advice.

 Ask for advice only if you want to hear other people’s opinions. 

Trust yourself.

Photo credit:  Advice @ Flickr http://flickr.com/photos/wurzle/659315/

Valerie Zinger ~ Ottawa, Canada ~ Phone 613-723-5300 ~ Email vzinger@royallepage.ca

Say Bye-Bye to 40 Year Mortgage Guarantees

MortgagesThere has been significant press around the Federal Minister of Finance’s decision to no longer provide government guarantees to 40 year mortgages.  In addition, the guarantee is not available for 100% financing of a home.  The buyer will be required to provide a minimum of 5%.  This could be borrowed, but it will not become part of the government  guarantee.  These changes will become effective October 15, 2008.

What is Mortgage Insurance?  A government guarantee is actually government backed mortgage insurance.  Mortgage insurance (which is sometimes called mortgage default insurance) is a credit risk management tool that protects mortgage lenders from losses on mortgage loans. If a borrower defaults on a mortgage, and the proceeds from the foreclosure of the property are insufficient to cover the resulting loss, the lender will submit a claim to the mortgage insurer to recover its losses. (from the Department of Finance website)

What is the Impact of a 35 versus 40 year amortization period on a $200,000 Mortgage?  If you cannot get a 40 year mortgage, then 35 year amortization periods continue to be available.  The example Finance uses is:  Reducing amortization from 40 years to 35 years on a mortgage loan of $200,000 with a 6 per cent interest rate results in a $41 increase in a borrower’s monthly payment, but the borrower will save $49,000 in interest payments.

Are there other changes?  Four other changes will be taking place. 

1.  Credit Scores:  “Canadian lenders have not originated many government-backed mortgages for borrowers with low credit scores. To ensure this practice continues, the new framework will establish a credit score floor of 620. There will also be a limited “basket” to provide for exceptions to this rule, recognizing that there are some borrowers with credit scores below 620 that otherwise represent low credit risks.”

2.  Loan Documentation:  The guarantee will now require a minimum loan documentation “standards to ensure that there is evidence of reasonableness of property value and of the borrower’s sources and level of  income.”

3. Interest Only Mortgages will not be covered.

4.  The total debt service ratio (portion of gross income that is spent on debt service and housing-related fixed or essential payments) will be set at a maximum of 45%.

I have included this information to give you a briefing on upcoming changes.  If you need additional information, it is available on the Government of Canada Department of Finance site, with mortgage brokers, and at your financial institutions. 

Before shopping for a new home, shop for your financing.  Know what is available to you.

  

Photo credit:  3D Realty Handshake @ http://www.flickr.com/photos/lumaxart/2136953043/

Valerie Zinger ~ Ottawa, Canada ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca

Mums the Word When House Hunting in Ottawa

In this age of technology, with nanny cams and voice recorders, it is best to say only positive things when looking at a house with your realtor. 

I know you are going to be surprised, pleasantly or otherwise, with things in a home.  In fact, what will give you most pause is how people decorate and the things they own and display.  It is always best to keep your reaction to yourself until you leave the house.  In some cases, it is because the owners are still there.  Why do they stay?  In other cases, it is because there is always a possibility that you are being recorded.  Shocking?  Yes.  I think owners are nervous about having strangers in their home and reduce their anxiety by recording the visit.  Whatever the reason, it is always best to keep quiet and touch nothing.

Now you have found the house you want to purchase.  Our buying strategy is best developed outside of the house.  The kitchen table looks comfortable and you want to sit and discuss next steps.  Don’t!  Go outside, go to the car, go to my office but do not have the discussion in the house you want to buy.  If there are recording devises, the owners will have an indication of how much you are prepared to pay and other terms that you may negotiate.   Why give away information?

 Finally,  if you are being recorded and you say negative things about the house, owners will take it personally and may decide not to sell you their home, no matter what your offer is.  Why be insulting and negative?  If the owner loves the home, then he or she will want you to love it as well.

Silence is golden.

Photo credit:  Silence! Foolish mortals! @ http://www.flickr.com/photos/randomecho/298010188/

Valerie Zinger ~ Ottawa, Canada ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca

 

House Hunting - 5 Open House Guidelines

If you are the Open House visitor there are some things that are just not acceptable.  With tongue in cheek, here are 5 guidelines for your to remember.

1.  The Open House is not part of the cosmetic department at The Bay.  Do not try on the owners’ perfume or after shave. 

2.  The Open House is not a pharmacy.  It is not your job to check out the supply of medications.  There is a reason why those bottles are turned away from your view.

3.  The Open House is not a grocery store or your mother’s kitchen.  Do not take fruit from the fruit bowl, sample the cookies in the jar or take a handful of candy from the candy dish.

4.  The Open House is not a public washroom.  Go before you leave home.

5.  The Open House is not Holt Renfrew, Macy’s or Winners.  You are not shopping for the clothes in the closets.

Unless you are about to put in an offer, right on the spot and without a building inspector, it would be exceedingly inappropriate to run the taps, turn on the oven, climb into the attic, turn on the gas fireplace, try out the washing machine, etc. 

General Open House Guide - Touch with Your Eyes.

Photo credit:  Flickr, Closet @  http://www.flickr.com/photos/dansays/65306832/

Valerie Zinger ~ Ottawa, Ontario ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca

Indiana Jones finds Greely Ontario

tulips_103.jpgThis bouquet is for a mom, dad and little boy who visited a model home on Saturday, June 21.  The house is part of five model homes being featured in Greeley (south end of Ottawa Canada).  The address is 1486 Sandy Beach Court.  Built by Villa Homes. See MLS #695613.

As you can imagine, going up and down stairs, taking shoes on and off, and the summer heat can be tiring.  It is always a concern when children visit model homes as the boundaries are different than when they are in their own homes.  I have seen children running at top speed up and down stairs, touching walls and furniture with sticky fingers, bouncing on beds, opening and closing every door and slamming some - just because.  However, not all children feel compelled to be free spirits.  In the situation on Saturday, the mom asked the boy to sit down in the foyer (which was very large) against a wall and to make sure that his legs were not extended out to trip anyone.  Once seated, he pulled out his DS Nintendo and started his game.  I was curious about what he was playing.  He was enthralled with Indiana Jones. 

When his parents were ready to leave he put the game on standby, said good-bye to me and went on to the next home to continue his game. 

 Three Cheers for Indiana Jones, mom, dad and the boy who behaved.

Ottawa House Hunting - The Ottawa Real Estate Board MLS Internet

The public increased their visits to the OREB Internet Site during the month of May 2008, compared to May 2007.  The statistics indicate, that increasingly, people are shopping for their dream home and checking out on house prices via the internet.  This tool supports the search. I encourage you to visit  http://orebweb2.oreb.ca/index.shtml 

Month of May 2008 Month of May 2007

 Members of the Public Visiting OREB             221,594         184,784  

Searches on property details                        1,944,290       1,462,473

Searches done on Open House details              40,957            32,342

These statistics are provided by the Ottawa Real Estate Board (OREB). 

Valerie Zinger ~ Ottawa, Canada ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca

 

Ottawa House Hunting - What is moving in Alta Vista

For the period January 1 through May 31, 2008, the following listings and sales were recorded on the Ottawa Real Estate Board multiple listings for properties in the MLS areas 3601 through 3609 (this does not include Elmvale Acres): 

Residential  Properties – Detached (127), Row (20), Semi(8)
155        Listings Available
      100        Sold
          0        Conditionally Sold
        55        Active
For the 100 properties sold:
The average number of days on the market was 25 with a range from 0 to 126
The average price paid was $420,009 with a range from $230,000 to $905,000
The average Sell Price to List Price ratio was close to 98%

 

Condominium Properties - Apartments (57)
 57          Listing Available
           30         Sold
             0          Conditionally Sold
           27          Active
For the 30 properties sold:
The average number of days on the market was 37 with a range from 0 to 155
The average price paid was $294,917 with a range from $135,000 to $454,000
The average Sell Price to List Price ratio was 97%

   

Ottawa House Hunting - What is moving in Old Ottawa South

For the period January 1 through May 31, 2008, the following listings and sales were recorded on the Ottawa Real Estate Board multiple listings for Old Ottawa South, including Rideau Gardens: 

Residential  Properties – Detached (40), Row (12), Semi(13)
65        Listings Available
       44        Sold
         1        Conditionally Sold
       20        Active
For the 44 properties sold:
The average number of days on the market was 24 with a range from 0 to 174 days
The average price paid was $462,766 with a range from $275,300 to $745,000
The average Sell Price to List Price ratio was close to 100%

 

Condominium Properties - Apartments (7)
 7          Listing Available
           6          Sold
           0          Conditionally Sold
           1          Active
For the 6 properties sold:
The average number of days on the market was 41 with a range from 1 to 81 days
The average price paid was $284,317 with a range from $224,900 to $326,000
The average Sell Price to List Price ratio was 99%

 

Multiple Family Dwellings - None

  

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