Fake home renovations- Home buyers beware!

Exercise caution! Fake Renovations need to be figured out

We are seeing more and more of 'Extensively Renovated' homes in the market. The house looks better than a brand new home with stucco on exterior, newer roof, basement apartment with separate entrance, new light fixtures, and what not! 

Are you a first time home buyer and have decided to put an offer on such a home?

You need to read this first.

Do you really need all those renovations for which you have agreed to pay more than area price?

Most of the renovations are meant to attract the unsuspecting homebuyers. Specifically, the one, who just falls for the shiny counterstops, nice gleaming floors and doesn't know about how the electricals should be or how the structure is, and which are more critical to making an informed decision.

Remember: All that glitters is not Gold!

I routinely come across many such stories of aggrieved buyers who get stuck with the property. Even five years later they can't recover their equity as they bought a home too high in the first place. Why should a buyer be forced to pay for some renovations that one can live without?! For example stucco on the exterior. Sure it looks nice, but if the seller is looking at $30,000 hike in price because he did stucco, why should the buyer pay for it? 
Some times even the so called 'investors' end up spending too much because they were told by someone that they can sell this home later at a very high return and end up seeing their home on market forever.

A few renos do help in longer run as they reduce the recurring costs like hydro, gas and water bills. While there may be a few frivolous upgrades as well which are more of cosmetic nature than actual use.  If I am buying a home I will least consider the following upgrades:

1. Paint in home - Won't cost a fortune and I can do it myself
2. Electrical fixtures - Great to  have them. But if the seller is looking to suck money out of my pocket, I will ask him to take them away. Why pay $200 for a fancy flush light fixture when I can get away with $35?
3. Hardwood floor- At a reasonable charge, it is okay to have it. So long as the floors are not squeeking, I will be okay with laminate or broadloom (Has to be neat though)
4. Backsplash-If I am tight on cash and there's another home at a lesser price, I will go for that house.  The backsplash is not a rocket science and I can do it later.

Renos which are advantageous

1. Furnace- A newer energy efficient furnace is the most important upgrade. It reduces gas cost and also hydro cost
2. Windows and Doors- helps conserve energy of the home and decreases the utility cost
3. Roof shingles - helps conserve energy
4. Enhanced ventilation - Roof ventilation helps avoid mold formation. Older roofs have less ventilation and are more prone to mold growth
5. Exhaust in kitchen/bathrooms - helps remove moisture, cooking vapors/smoke and minimizes the risk of mold formation
6. Bathroom renovations and plumbing- This is hygienic for occupants and avoids wastage of water. Dual flush tanks reduce a lot of water and waste water bill
7. Roof insulation - Retains heat and cold of the home
8. Copper electrical lines and breaker switches- Reduces insurance cost

Do you have a professional agent working for you?
Some homebuyers are under the impression that going direct they will get a better price from the homeseller. But who will determine the best price?  The area sales are a good starting point. But are they sure that the home being compared to the subject home is similar or that price adjustments have been made to account for the asking price.

A real estate sales representative has tools at his disposal that tell the whole history about the home under consideration. The realtor has the professional capability to make adjustment in price vis-a-vis another sold in the neighbourhood.  Why not use that expertise which, for a home buyer, is completely free? There are many cases when the homebuyer didn't know that the home is located right under the air corridor and that about 70-100 flights pass through that corridor shaking windows and that a train track just nearby shakes the entire house resulting in cracks in foundation.
Check out www.Howrealtorshelp.ca for more insight into this.

A professional realtor will negotiate for the best price and for a best home only.

I recently happened to see a house for a client a few months back which was on sale for $380,000 plus. The seller had just bought it a few months back for about $250s and after doing stucco, electricals, flooring, windows, doors is trying to cash over $ 100,000 while the renos may not be worth more than 30,000. Just for info the house is about 900 SF with one bedroom basement.The roof doesn't have soffits and I suspect poor insulation and ventilation there too.  My advice to the client was not to buy it and he understood. Wisdom prevails.

For more information on what should or should not be done when you go for purchasing your first home, don't hesitate to call me or text me or leave a voice mail. You will always be responded back promptly.

Dripping 'upgraded' light fixture in porch

An electrical shock/fire risk awaits to happen

(C) PAUL CHEEMA-2012, No part of this blog to be reproduced without attributing proper citation to the author. Protected with anti-plagiarism software.
DISCLAIMER: These are my personal thoughts based on my own experience with home buyers and home owners. You may have different experiences and yes, there are always exceptions to everything in this universe. Definitely this content is not provided with an intention to solicit clients already under contract with other brokerages.



 

Should you Buy a home now?

The market is cooling its heels after a brisk run in the past months. The inventory is there and the sellers are beating each other by lowering their asking price. Some sellers are desperate as they have another closing approaching for them. The mortgage rates are still low. Yes, under the current scenario I believe it is the right time to buy for a buyer with good credit, good job, and good down payment.

So, what you need to know to reap the benefit of fallen market?

The foremost is maintaining your credit score.  If you are really planning to buy a home, hold on to your car loan or any other consumer goods loan. This loan will immediately lower your affordability and put you in jeopardy of home purchase.

1. The next is to go for pre-approval. Though pre-approvals don't mean much, but it does one thing and that is hold on interest rate.  Rest all is conditional on this and that condition. So make sure you lock into a rate.  The benefit of pre-approval is that if the interest falls you get lower interest and if it goes higher, you are still at a lower rate. Sound good? Speak to your mortgage consultant and don't shy away.
2. The pre-approval does another great thing.  It tells you your affordability. Stick to that and you won't get into trouble.
3. Some sellers will settle for less if you can close early.  See if it is possible for you.

There are more to what can be written in this post. One must make a diligent decision to have them enjoy the home rather than getting into financial crisis.

Call me to discuss your home purchase today. I can be reached 24/7/365 at 416-232-9000 or you can drop me a line at paulsellsfaster@yahoo.com. You are encouraged to visit www.quicksellnbuy.com for many tools like mortgage calculation, affordabilty calculators and many new listings.

Happy Home buying!




Disclaimer: The information is provided as a research and information help.  Please use your best discretion when buying real estate. Though it is deemed to be reliable, no warranty of any kind is implied.

 

Top 10 Secondary Schools in Mississauga

Top 10 Secondary Schools

The following is the list of top 10 secondary schools in Mississauga as reported by the Fraser Institute. To see the list of TOP 10 Elementary Schools in Mississauga click here.

Order	Secondary School name/Address	Ranking out of 718	Fraser Institute Rating out of 10	Average House prices
1	Lorne Park Secondary School 1324 Lorne Park Rd, Mississauga, ON L5H3B1 Phone Number: 905-278-6177	31	8.5	$1.3 M (Low: $580,000)
2	Cawthra Park Secondary School 1305 Cawthra Rd, Mississauga, ON L5G4L1 Phone Number: 905-274-1271	43	8.3	$600,000 (Low: $400,000)
3	John Fraser Secondary School 2665 Erin Centre Blvd, Mississauga, ON L5M5H6 Phone Number: 905-858-5910	50	8.2	$1.2 M (Low: $700,000)
4	Glenforest Secondary School 3575 Fieldgate Dr, Mississauga, ON L4X2J6 Phone Number: 905-625-7731	74	7.9	$700,000 (Low: $500,000)
5	Gordon Graydon Memorial Secondary School 1490 Ogden Ave, Mississauga, ON L5E2H8 Phone Number: 905-274-2391	74	7.9	$500,000 (Low: $350,000)
6	Streetsville Secondary School 72 Joymar Dr, Mississauga, ON L5M1G3 Phone Number: 905-826-1195	112	7.6	$900,000 (Low: $500,000)
7	Stephen Lewis Secondary School 3675 Thomas Street, Mississauga, ON L5M7E6 Phone Number: 905-363-0289	129	7.5	$600,000 (Low: $400,000)
8	Rick Hansen Secondary School 1150 Dream Crest Road, Mississauga, ON L5V1N6 Phone Number: 905-567-4260	144	7.4	$550,000 (Low: $440,000)
9	Port Credit Secondary School 70 Mineola Rd E, Mississauga, ON L5G2E5 Phone Number: 905-278-3382	161	7.3	$900,000 (Low: $400,000)
10	The Woodlands Secondary School 3225 Erindale Station Rd, Mississauga, ON L5C1Y5 Phone Number: 905-279-0575	175	7.2	$480,000 (Low: $400,000)

Disclaimer: The information is believed to be correct. The article is provided just for the sake of research and information.  However, caution is advised and the reader is requested to make independent inquiry to his/her satisfaction.

Top 10 Elementary Schools in Mississauga, Ontario

After immigrating to Canada you must be thinking on what school would be good for your child. This is a very valid point even before you think of renting or buying a dwelling. Your selection of school will determine your living place.

Unfortunately most of the families don't have the right knowledge as to where to find the school rating.  There's a resource online called Fraser Institute Report card which can be accessed by clicking here. What this organization does is provide information on schools based on scoring out  of 10 and uses EQAO test results for Primary and Secondary grades. Though not exhaustive, this report card provides a fair estimate of the school ranking in the area you are planning to settle down in. After all one of criteria of your move to Canada could be best education for your child so that they become better individuals and perform to perfection in their lives.

I recently found this resource online and thought of sharing. Many of you might be aware of its existence but anyways our joint endeavour is to spread knowledge of resource that can transform lives of our young minds.

Ten top elementary schools in Mississauga
School Board: Peel District School Board

Order	School  Name/Address	Rating 2010-11 Out of 2695	Fraser Institute Rating Out of 10	Average home prices Freehold: Semi-Det, Detached,Att/Row/Town
1	Kenollie Public School 1376 Glenwood Dr,  Mississauga, ON L5G2X1 Phone Number: 905-278-8991	44	9.4	$1.2M (Lowest: $777,000)
2	Plum Tree Park Public School 6855 Tenth Line W, Mississauga, ON L5N5R2 Phone Number: 905-824-0155	155	8.5	$504,000 (Lowest: $388,000)
3	Floradale Public School 210 Paisley Blvd W, Mississauga, ON L5B2A4 Phone Number: 905-275-1090	281	8.1	$561,000 (Lowest: $350,000)
4	Sheridan Park Public School 2280 Perran Dr, Mississauga, ON L5K1M1 Phone Number: 905-822-2401	313	8.0	$660,000 (lowest: $465,000)
5	Forest Avenue Public School 20 Forest Ave, Mississauga, ON L5G1K7 Phone Number: 905-278-2472	349	7.9	$700,000 (Lowest: $330,000)
6	Tecumseh Public School 1480 Chriseden Dr, Mississauga, ON L5H1V4 Phone Number: 905-278-5594	429	7.7	$1.1M (Lowest: $750,000)
7	Mineola Public School 145 Windy Oaks Dr, Mississauga, ON L5G1Z4 Phone Number: 905-278-3144	559	7.4	$630,000 (Lowest: $430,000)
8	Ellengale Public School 3480 Ellengale Dr, Mississauga, ON L5C1Z7 Phone Number: 905-279-1555	559	7.4	$400,000 (Lowest: $330,000)
9	Sawmill Valley Public School 3625 Sawmill Valley Dr, Mississauga, ON L5L2Z5 Phone Number: 905-820-2500	710	7.1	$900,000 (Lowest: $550,000)
10	Settler's Green Public School 5800 Montevideo Rd, Mississauga, ON L5N2S1 Phone Number: 905-826-4947	710	7.1	$400,000 (Lowest: $280,000)



 Disclaimer: Information believed to be correct but no warranty is implied. This is extracted from Fraser Report Cards and MLS(R) data.

Should you want more information on these areas of Mississauga, please write your comment in response to this post. I will try to provide the best answers for that.

Paul Cheema