LONDON REAL ESTATE NEWS

If you’re thinking about buying a piece of real estate as an investment property, market conditions are definitely in your favour. While the resale housing market has seen a tremendous amount of activity from first-time buyers in the past year, it’s also a perfect time for existing homeowners to invest in secondary residential properties.

If your annual spring cleaning ritual has produced a mountain of unused and unwanted items, you may want to think twice before you simply toss them out. How about a yard sale to turn some of that “junk” into someone else’s “treasure?”

To most of us, electricity is simply flicking a switch or turning a dial to light up a room, cook supper or get instant entertainment. We take it for granted — that is, until there’s a power failure and we have to scramble to find flashlights, candles and matches in the dark.

When buying a home, the neighbourhood you select will not only play a pivotal role in your family’s life, but in the resale value of the property.

One person’s ideal neighbourhood however may vary greatly from another’s. But, regardless, there are some needs and wants that generally do not change. The distance from your new home to schools, churches and shopping, for example, will not only affect how you and your family settle into your new home, it will also draw or turn off a perspective buyer.

A good first step is to enlist the services of a REALTOR^® who works in the area you are thinking of moving. REALTORS^® are very familiar with the communities in which they work and can answer many of the questions you will develop during your search.

Check the lifestyle

A home is a part of a larger community. And some are more desirable than others. Some communities are geared more to young families, others to older adults and still others to singles or an eclectic mix of residents.

Never buy in an unfamiliar community or neighbourhood unless you have spent some time there both during the week and on weekends, day and night. Drive and walk around. Talk to store owners and people you meet on the street. Ask what they think of the neighbourhood.

If there are vacant tracts of land where you plan to buy, check with local authorities to see what the proposed land use might be. The last thing most homeowners want is the development of a mall or a high-rise office building across the road from their newly-purchased property.

Don’t let particular things in a home that appeal to you override its location and potential subsequent resale value. When analyzing a potential property, ask yourself if you can imagine living — not just in this home — but in this neighbourhood for quite a long time.

Remember that someday you may have to sell your home to someone else and things that may not be important to you — such as distance to schools, shopping, doctors and work — may be important to other buyers.

Location, location

In addition to finding the right neighbourhood, consider the immediate homes around the particular property you want to buy. Are they well maintained and worth the same or more than the home you are considering?

Is the location a quiet area or a major traffic thoroughfare? What kind of privacy does the backyard provide? Does it get the morning or afternoon sun? If there is no house behind you, who owns the property and how will it be developed?

Homes located further away from the centre of an urban area are generally cheaper. Are you prepared to invest the time and money it takes to commute and how long of a commute are you prepared to commit to? Is there public transit and good access to major highways nearby?

If you have kids in school, what kinds of schools and services are available? Will your kids have to be bused to their school? If a school is close by, will they have to cross any major intersections?

Being close to a school, on the other hand, may have some drawbacks — few owners want the noise and disturbance of being located right next door.

Finding malls, grocery and specialty stores in urban, residential areas is rarely a problem. But in neighbourhoods further away from urban areas, you may need to drive to the nearest convenience store. And getting to the local grocery store, pharmacy and other support services may require an even longer trek.

It’s great to be located near parks and recreational facilities, but few homeowners appreciate the high cast of tennis court lights beaming into their back yard. If the home you are considering backs onto such property, drive around the area and see how often the baseball diamonds, soccer fields, swimming pools and skating rinks are being used and when.

More serious concerns are having such things as gas stations, airports, railway tracks, commercial developments, major highways and cemeteries very close by.

Finally, if your heart is set on finding that one-of-a-kind 150-year old Georgian home, you’re not going to find it in a newer development. If you want large bedrooms and bathrooms, narrowing your search to an older part of town where homes are generally smaller, may prove disappointing.

Before making any decisions, think of your lifestyle and how a particular location would enhance or detract from it.

Thinking of buying or selling a home? If so you’ll want to enlist the services of a REALTOR^® to help you navigate through this complicated business transaction from start to finish.

Your REALTOR^® has what it takes to help you every step of the way to achieving your home ownership dreams. And, he or she will be the top player on a team of experts who will protect your interests and ensure your real estate transaction goes smoothly.

The team Depending on your needs, the other experts on your team will likely include a lender, a lawyer, and insurance agent and a home inspector. Your REALTOR^® will offer guidance as to how to proceed with your purchase or sale and when it’s time to bring in the other experts and professionals on your team.

REALTORS^® role A REALTOR^® has vast amounts of real estate knowledge and the experience required to stay cool, even in a hot real estate market. In Ontario, a REALTOR^® is a licensed real estate professional who is a member of a local real estate board as well as the Canadian Real Estate Association (CREA) and the Ontario Real Estate Association (OREA). When you work with a REALTOR^®, you can expect strict adherence to provincial law as well as to a code of ethics ensuring you’ll receive the highest level of service, honesty and integrity.

If you are buying a home, your REALTOR^® can help you determine how much house you can afford, offer advice on choosing the right neighbourhood and ensure your interests are best served during negotiations.

If you are selling a home, your REALTOR^® will help you determine a fair and accurate asking price for your home, develop a marketing plan, offer advice to help make your home more “saleable,” screen potential buyers, show your home and, of course, negotiate on your behalf.

Lender As you and your REALTOR^® begin looking for a home, it is wise to also begin looking for a mortgage lender. Your REALTOR^® can help you review various mortgage options to ensure you get the best rates and terms available. Although most buyers will start their search with their own bank or financial institution, it pays to shop around for more competitive rates. Often, your bank will match or beat a competitor’s rate to keep you as a customer.

Lawyer It is recommended that you have a lawyer waiting in the wings, preferably one who specializes in real estate transactions, to review complicated documents such as the Agreement of Purchase and Sale. If you are selling, it’s wise to have a lawyer review an offer to purchase before you sign it. As a buyer, your lawyer will also ensure you receive clear title to the property and calculate the amount of land transfer tax you will be required to pay.

Home inspector Having a home professionally inspected before you seal the deal to buy can help you avoid costly surprises after you move in. A home inspector will report any minor problems as well as major ones such as structural deficiencies that could affect your decision to buy at all or at what price.

Insurance broker In order to secure financing, mortgage lenders require insurance on the home. Just like when you shopped for your mortgage, do your homework with insurance companies too. Insurance coverage and rates vary and you will want to be sure you get the coverage you want at a fair price.

Your MVP Having the right team of experts on your side can mean the difference between a successful real estate transaction and a personal and financial nightmare.  When you select your team, start with a REALTOR^® – he or she will be your Most Valuable Player.