Real Estate Information Archive

All Rooms - Window Replacement

Avg. ROI = 81.2% (wood), 79.3% (vinyl)

Keep in mind the geographical area you are in. Vinyl windows may be better suited in some areas where wood or vinyl clad may be the norm in others. Don't over-improve for your neighbourhood and try to avoid strong colours or unique custom components. You may have paid hundreds of dollars extra for that motorized skylight with argon gas but this may not necessarily be an important feature to the buyer.

Did you know wood windows insulate better than the typical vinyl window. Don't discount the traditional wood window! You can buy wood windows that are vinyl clad on the outside or, you can cap all the wood on the outside of your windows!

What is most important in selling your home, is that the windows are not rotting (if wood) or in a deteriorated state with broken seals. Wood windows have a long life span if they are properly maintained.

POWER OF SALE:

Most consumers think "Power of Sale" means a cheap sale, under market value. Real Estate agents use the term to attract business to their web sites, offering extensive lists of power of sale properties and the buyer's eyes light up with quick, get rich visions.

The fact is, the Bank Act in Canada mandates the Banks must get "fair market value" for any homes that are repossessed. They cannot simply sell the house for what is owing on it. With most power of sale properties, there is very little equity to begin with, the result of 100% to 105% financing in many cases.

In addition, these homes are often in need of repair, which adds to the purchase price. Typically, the bank lists the home through a real estate agent at market value. The home will sit for 30 to 50 days before the first price reduction. This reduction usually causes some activity and the home may sell. If not, it sits for another month at least before the next reduction. By following this strategy, the Bank ensures that it cannot be held liable for failing to try and get the mortgagor fair market value for the home. It's a bit of a dance.

Even if you buy the home after the 1st or 2nd price reduction, the property usually needs repairs. This would bring your investment back up to "market value"...hardly a "deal" if you plan to re-sell it and pay real estate commissions and legal fees.

Don't forget, when looking for deals on the multiple listing service you are actually searching the retail market for good buys. This is much easier said than done and is not the best way to find bargains. However, I don't think a real estate agent would ever tell you that! We get a lot of "leads" from folks looking for these type of purchases.

To be fair, you can occasionally find a power of sale property that makes sense from a financial perspective, but it's not as easy as you may think.

I'd love to hear your comments on this topic.

THE BATHROOM!

Bathroom remodels consistently rank near the top in terms of return on investment. The minimal improvements would include neutral and relaxing tones, water saving fixtures, updated surfaces and cabinetry. The next step up could include "spa" elements such as heated floors and towel racks, a deep soaking tub or a double showing with a combination of shower heads. Upgraded lighting and "mood" lighting are also good additions. Whether it's a powder room, the kids bathroom or the ensuite, upgraded washrooms pay back the investment to almost 80%.

I enter someone else's home practically on a daily basis. Scary stuff, right? What's really scary are some of the things I see in older homes. The worst seems to be homes 15 years and older that have never been touched. It's not so much that things are worn out, many times they're not, depending on how hard the home has been lived in. But what does change is style! The home building industry is much like the auto industry. Builders are constantly searching out new styles, products, colours etc. so you can be sure that what's in style when you bought your home, will one day be "dated"...if you stay long enough...like me!

Here is the 1st of the 3 rooms that rise to the top of the Return On Investment (ROI) list:

KITCHEN - Average ROI = 83% (minor remodel), 78.1% (major remodel)

A major kitchen remodel, depending on size, could run upward of $100,000 and on average get a return of approximately 78%. You're talking about custom cabinetry, expensive surfaces, high end and built in appliances, designer services, flooring, lighting etc. A minor "facelift" averages a simiilar ROI but costs far less. The more modest project might entail cabinet refinishing, replacement of countertops and flooring and perhaps installing new appliances that are inexpensive but improve the room's appearance.

You knew I was going to list the Kitchen first. When I walk into a re-sale home and see a shiny, modern kitchen...I know that home is sold!

Make it a great day!

I've been wanting to get an informal formal on Durham Region real estate up and running for some time! There are a multitude of topics and pointers to discuss that can directly benefit any home seller or home buyer.

Real estate is one of the most exciting occupations known and the financial and emotional toll can be huge. Join me as I move forward to speak candidly about issues that affect your greatest investment. I welcome any and all constructive comments!

Sales Break 6,000 In Spite Of Winter Weather