I have tried to steer my clients to inspectors from franchised companies who can demonstrate training and knowledge in home inspections together with ‘Errors and Omissions’ Insurance to cover my client in the event that the inspector misses something in his written report.  I am aware that one of these well-known company stepped in and paid a homeowner over $5000 when it was discovered that the acreage sewage system that they had paid to have inspected and was designated as ‘satisfactory’ was proven, upon possession, to be completely unsatisfactory!

Most of the inspectors I have worked with over the 17 years I have been in real estate have been qualified and helpful.  However, I can vividly remember two inspectors hired by my client with whom I was not acquainted (Believe it or not, there are at least 225 Home Inspection companies in the province).  One I had been warned about–he had a reputation of giving a failing grade to almost every home he inspected; true to form, he scared my clients my grossly over-inflating the cost of re-doing some minor depressions in the front landscaping to the point where they walked away from an otherwise reasonable house.

On another occasion, I met a home inspector who arrived at the house with a short-stepladder that prevented him from inspecting the roof (‘I’ll do a visual inspection,‘ he declared.  But with the flat roof, he had to go two houses away on the sidewalk to complete this unsatisfactory step).  This same inspector then told us, ‘This home does not meet current building codes.’    I then reminded him that the house was 30 years old and met the code at the time!

In order to protect the consumer, the Alberta Government has just announced that beginning on September 1, 2011, all home inspectors must be licensed by the provincial government.  Accordingly, all inspectors must have a degree, diploma or certificate in home inspection from an approved educational institution and must successfully complete a test inspection.  Conditional licenses valid until March 31, 2013 will be issued to those who are in the process of acquiring the necessary qualifications.  Qualified inspectors will be able to make recommendations on deficiencies they discover in a particular home such as recommending the potential buyer obtains expert opinion; they will not be permitted to estimate the cost of any repairs or improvements.

In a further step to protect home-buyers, home inspection companies must:

• Carry ‘Errors and Omissions’ Insurance
• Post a security deposit to cover consumers if the regulations are not followed
• Establish the specific parts of the home and property that are covered in the inspection
• Not include contract clauses to limit the liability of the home inspector

For many sellers, listing their home for sale is a march into unknown territory.  They are unclear about important details like the marketing and sales process, the legal and financial risks, the options along the way, the legal contracts and their wording, the offer presentation, the deposits, the conditions, and so forth.  The questions cascade through their minds: What do i need to do to get my home ready for sale?  What should I do with my valuables?  What is a fair asking price for my property in a fluid marketplace?  How do I know if a potential buyer who wants to view the house is in fact qualified to do so?  If a buyer brings a purchase contract to me, how do I know whether or not my interests are protected?  How much of an initial deposit should I request and to whom is that deposit made out?  How do I negotiate a fair selling price since I have little or no experience in that important phase of the sale?  How do i know that my interests are clearly being protected along the way?  The questions are endless and the cause of sleepless nights!

Precisely because of these important questions, the seller must answer the question–How much representation and service will I require to sell my home and still keep my sanity?

If a seller chooses to sell by owner or to list on the Edmonton Real Estate Board’s Multiple Listing Service with a mere posting [the listing appears but is unrepresented by an agent], they have chosen to walk down the road by themselves.  This can be a risky choice filled with potential heartache if some glitch occurs along the way with which they are unfamiliar.  At the least, such sellers should seek legal opinion from a real estate lawyer before signing any documents.

Even if they have been down that road before, many, for peace of mind, will still choose to rest behind a third party (ie., an experienced real estate agent)  and the promise of fair representation.  They want the assistance of a trusted professional to guide them safely through the myriad of details to a successful conclusion.  At this point, they will have two alternatives: the use of a discount brokerage or the use of a more traditional brokerage.  The difference largely revolves around the amount of commission being assessed.

Again, the savvy seller should be quite certain, before making a final choice, about the level of service each alternative will offer.  Will he/she provide a list of several clients who have recently used his/her services so that the seller can verify the facts?  What will be the specifics of an on-going aggressive and effective marketing campaign? Will there be regular progress updates from the listing agent? Will there be helpful feedback and suggestions following showings?  Will the listing agent handle all inquiries about the property?  Will he be present for all offer presentations?  Will he/she adequately answer the question, ‘What advantages and disadvantages will I face if I offer the defined commission structure being recommended’?

After all, the old adage, ‘You get what you pay for’ probably applies!  Therefore, satisfy yourself that the real estate goal of yours – to sell your home as quickly as possible for top dollar with a minimum of disruption to your life–will be accomplished by the model you choose!

The free REALTOR.ca app is provided at no cost to consumers.  For example, by using the Blackberry’s onboard GPS technology, the home buyer can now search:

1.  Properties Near Me and get up-to-date property information, photos and driving directions;

2.  New Listings Near Me and view recent listings in specified areas;

3.  Open Houses Near Me and find open houses close to a specified location.

As well, consumers will be able to contact their agent or the listing agent using My Agent to receive more information about a specific property anywhere in Canada.

So Edmonton home-buyers, here is a whole new way to search for properties in and around our fair city!   Accurate information is one way to assist you to make informed decisions!

A setup guide for this powerful and useful app has been posted online at www.crea.ca.

The answer to this important question is a key to selling your home.  There are a few factors to grasp.  First and foremost, the real estate market is extremely price-sensitive.  With so many homes for sale, buyers have the luxury to look at many homes before they make a final decision.  After viewing a handful of homes, most buyers conclude that there are some inferior homes that are over-priced for the marketplace.  Their opinion is based on location [quiet or noisy, commercial properties or major roadways nearby, etc],  general appearance of the exterior and interior of the home ["This home has great potential but will require a lot of work to restore it to its potential'], and the price.  Many buyers are prepared to pay top dollar for a home that presents itself as ‘a cut above the rest.’  That being said, there are another whole group of people who are looking for ‘fixer-uppers’ so they can put in the sweat equity and then flip them for a profit.  However, these investor/buyers will only make an offer on such a home if ‘the price is right.’

Second, the marketing of that home is critical to its appeal to the buying public.  Perhaps a majority of qualified buyers view homes on the internet long before they ask a realtor to show them that property.  Therefore it is crucial that a seller ascertain the number of websites on which their property will receive worldwide attention.  My sellers will find their properties on at least four websites: www. realtor.ca [The national site of the Canadian Real Estate Association]; www.remax-western.ca; www.edmonton-homesearch.com and www.edmonton-real-estate-info.com. Buyers will often discard some properties just on the basis of the pictures and description they find on the internet.  Correct spelling and grammar, accurate information, quality pictures, justifiable descriptions all contribute to a probable showing.

However, I have had some buyers walk into a home that had excited them beforehand to experience major disappointment!  ’Am I in the right house?‘ they ask.  ‘The pictures and description paint a much different story than the home is prepared to offer!’ they groan.  I haven’t met a buyer yet who appreciates the ‘smoke and mirrors treatment‘.  If a home needs a lot of cosmetic repairs, it is grossly unfair to the incoming buyer to describe it as a home that shows ‘extremely well.’   Honesty up-front in pricing and description can off-set the negative reactions that can be so easily expressed.

Taking some time to unclutter [pre-pack!], paint, clean and repair the home prior to listing it can pay big dividends later on.  Remember, with so many competing listings trying to attract a qualified buyer, sellers must be realistic in pricing and expectations knowing full well that superior homes properly priced will attract immediate attention.  A ‘Sold!’ sign will be posted on the front lawn in a short time if the keys to selling a home in Edmonton are diligently applied!

After the massive layoffs and cut-backs following the serious downturn in the oil industry three years ago, there is optimism that the oil industry may be ramping up for some more frenetic activity.

What does this mean for the Edmonton Real Estate market? The inventory may get reduced significantly from its recent highs as new workers move in and buy homes. Such a trend will probably force prices upwards as buyers compete for a limited number of available homes. A market again favoring the seller may not be too far off!

Does it still make sense to own your own home?  Absolutely!  It is better than paying rent.  Besides mortgage rates are still very affordable –even though they are now creeping above 4% for a 5 year term.

Even in a static market, selling and buying again still amounts to an equity exchange.  As well, there will always be motivated sellers who need to sell and price their homes accordingly.

• Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.
• Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
• Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

Edmonton home buyers take note particularly of the reduced amortization period.  Take the following example as a guide.  A $150,000 mortgage at 4% interest amortized over 35 years requires a monthly payment of $661.20; spread over a 30 year period, the payment becomes $713.28.  In other words, the payment increases by $52.08 per month.  Reducing the payment period to 25 years [and saving yourself ahuge amount of interest payments] would require a monthly payment of $789.03.

If you are thinking of buying this year and you would like to take advantage of the lower payment structure, ACT NOW!

Mortgage lending rates have started to creep to 4% for 5 year closed term. Expect these rates to continue to rise in 2011. Some are predicting at least a 1% increase. NOW is the time to lock in your mortgage pre-approval!

Average Edmonton home prices are expected to rise marginally in this new year [perhaps 4-5%). In a few months, the trends will be easier to identify!

Steve Davidson has written that ‘Forecasting future events is often like searching for a black cat in an unlit room that may not even be there.’ In other words, this sage believed that future events, like cats, can prove to be very elusive!

Winston Churchill would wholeheartedly agree with this assessment. He once said, ‘I always avoid prophesying beforehand because it is much better to prophesy after the event has already taken place.’

Some of the forecasters of the 2010 Edmonton Real Estate market might want to take Churchill’s advice. One reliable source (CMHC) told us a year ago to expect an annual average price increase of about 4% in 2010 which would put us about equal once again with the 2008 average annual home price. Moreover, they fortified their prediction with the bold prediction that there would be a lower housing inventory this year than last.

How did this somewhat optimistic outlook work out? Let the following chart detailing the activity from January-November, 2010 speak for itself:

EDMONTON REAL ESTATE COMPARISON 2008-2010
Year 2008 2009 2010
Single Family Home Listings 21,894 16,736 19,077
Condominium Listings 11,352 8,638 9,278
Single Family Home Sales 10,789 11,745 9,825
Condominium Sales 4,705 5,121 4,411
Sales-to-Listing Ratio 49% 70% 51%
Avg. Sales Price (SF) $377,121 $364,480 $378,326
Avg. Sales Price (Condo) $228,569 $236,652 $229,603
Avg. Days on Market (SF) 56 50 47
Avg. Days on Market (Condo) 58 57 52
Total Units Listed 38,299 29,787 31,137
Total Units Sold 17,049 19,016 15,400

The most popular price ranges were $150,000-375,000. This range accounted for 2/3 of all sales.

What does 2011 hold for Edmonton Real Estate? Probably much the same as 2010. With interest rates starting to climb, buyers should be anxious to become a homeowner while the rates are still affordable and the home prices attractive. Generally, prices may see a modest gain of 3-4% although I defer to Winston Churchill about the certainty of the statement!.

First, once a year have your furnace, hot water heater and gas fireplaces inspected by your gas supplier. It is a free service that must be scheduled in advance. If there are any difficulties, they will be identified to you. It is a good idea to pre-purchase a couple of 36 inch Honeywell Thermo-couplers (about $9 each at Home Hardware) and have these available. If one is needed at the time of inspection or later when an appliance shuts down, the gas company technician will replace it at no additional charge. Without it, you will face a $75 charge! Obviously, it is a good investment.

Second, ensure that your smoke alarms are in working order. Test them frequently. It could save your life!

Third, make sure that you have a carbon monoxide detector properly installed near any gas appliance. CO is the ‘silent killer’ and you don’t want to be another victim.

Fourth, check the weather stripping around all exterior doors. If you can see daylight looking from the insight out, it is time to change them. They should not be painted over as this will harden them and nullify their effectiveness.

Fifth, check on the amount of attic insulation you have. Adding several inches is reasonably affordable and will greatly reduce your heat loss and your monthly bill.

Sixth, consider upgrading your inefficient older gas furnace with a new high efficient one. It will save you money over the long haul and will make your home more sale-able should that become an issue.

Seventh, before winter arrives, check the caulking around all windows. Re-caulk where necessary. It will seal possible heat loss from the home.

Eighth, consider replacing your windows with energy-efficient ones. The monthly gas savings will be noticeable! Again, it will increase the price you will receive should you decide to sell.

Ninth, if you have a wood-burning fireplace, have it regularly inspected by a certified professional. Have the chimney cleaned regularly.

Tenth, check the grading around the house. If it has sunk and the rainwater accumulates around the foundation, expect leaking and expensive-to-repair problems are near at hand. Create a positive flow away from the house by getting some clay and redoing the landscaping around the foundation. Lengthen the downspouts and make sure the water runs AWAY from the house.

Finally, it is important to have a certified electrician check out your wiring–particularly if you are purchasing a home and that home has aluminum wiring A home inspector provides this service although you might want a second opinion if there appears to be potential problems.

Eleventh, clean the house gutters at least once a year and ensure that they are running with blockages or leaks.

Twelfth, if you have wood windows, make sure that they are painted on a regular basis. A little time spent in such maintenance will length their lifespan and function by years.

Edmonton home owners, a little time spent in regular maintenance and inspection can provide you with many worry-free years in your home!