They say you can't judge a book by its cover. But when it comes to houses, the exterior can be just as important as the interior if selling or buying.

When selling, it is the outside, or the home's curb appeal that often determines whether the inside is ever seen. How a house 'shows' from the street can tell a potential buyer a lot about what it may be like inside. Even if the inside is the sparkling, charming, structurally sound dream home they've been searching for, a buyer is not going to forget a cracked driveway, fallen shutters, overgrown grass and flower beds.

That's why most Realtors recommend a house not be seen for the first time at night. If you have no choice but to view homes at night, always be sure to drive past them during the daytime before making any final decisions.

For sellers, there are many ways to enhance the exterior of a home to achieve the curb appeal necessary to attract prospective buyers. Start by taking a close, objective look at your home from the curb. Be sure to view it from different angles. Ask friends and neighbors for their unbiased opinions. What are the appealing features? What's not so appealing? What can you do to improve its appearance?

Are the shrubs untrimmed? Are there broken doors and windows, loose screens and railings? Does the exterior trim, or entire surface, need a paint job?

The interior may be clean, without a leaky faucet, cracked floor or loose door hinge in sight. But if the exterior roof, gutter, walls, driveway, garage and yard look dirty and untidy, chances are you're not going to get a lot of potential buyers knocking at the door.

Creating curb appeal is making your home inviting from the outside -- where first impressions begin. This doesn't mean spending a great deal of money remodeling and renovating. Adding a new front verandah might add a lot of curb appeal, but so will a couple of wicker chairs and potted flowers by the front door - at a lot less cost.

Here are some more tips for making the outside of your home attractive and inviting:

Clean up the yard

Mow the lawn, trim the hedges, weed the flower beds, get rid of dead trees and shrubs; get rid of any broken lawn furniture; shovel the walk and driveway in winter; rake the yard in the fall.

Repair any problems

If the roof is damaged, repair it. Also repair any doors and windows that have loose hinges or other damage; fix storm doors and window screens; caulk window exteriors; clean and repair sidings and other structural flaws.

Eliminate clutter

If you have yard and construction debris piled up along the side of the house, or elsewhere, get rid of it. The exterior of your home should be as uncluttered in appearance as the interior. This includes cleaning out the garage - a major breeder of clutter. Be ruthless. If you haven't used something in a year, give it to charity or recycle it.

Give siding a fresh new look

Cleaning the exterior surface is all your home may need for a fresh new face. Before rushing to paint siding, try washing it. For painted wood siding and aluminum siding, use a solution of one cup strong detergent and one quart chlorine bleach in three gallons of water. Be sure to wear rubber gloves, goggles and other protective garments. Work from the bottom up and rinse thoroughly.

To spruce up vinyl siding, hose it down, sponge it with a mild liquid detergent and rinse.

Use paint to brighten, re-proportion exterior

A paint job can do wonders for the exterior of a home. A low house can look more graceful and tall from the curb by emphasizing its vertical features. Paint elements such as doors, shutters and corner trim in a color that contrasts with the siding material or color. On a high home, emphasize horizontal by using a contrasting paint color on window sills and fascia boards. You can also make a tall house look lower by painting it a dark color, provided that the roof is dark too. Conversely, a light color will make a home look larger.

Co-ordinate the exterior 'look'

The more co-ordinated your house looks from the outside, the more appealing it will be. Co-ordinate the 'look' of your home by painting the garage, tool shed, playhouse and other outdoor structures with the same color schemes as the house. If your house is a mixture of conflicting textures - vertical siding, shingles and brick, for instance - try painting them all the same color, or in two related shades of the same color, to create a harmonious look. Dark tones work best when working with conflicting textures.

Use flower power

Well-placed flowers, trees and shrubs can really make the outside of a home look inviting. Not only does attractive landscaping invite buyers, it can increase the value of a home. Even without major landscaping, flowers can make a yard look colorful and pleasant. Plant them in garden beds, hang them from railings and porch ceilings, add flower boxes to window sills. There is no limit to the power of flowers.

At night, highlight garden features with spotlights and floodlights. Well-lit paths and entrances promote safety, discourage burglars and are an added feature to any home. A pretty wreath on the door and a welcome mat will finish things off.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

It's hard for an avid gardener to put down their spade come winter. That's why so many choose to garden year-round.

Whether it is wintering expensive outdoor annuals inside your home, investing in a small greenhouse or growing miniature indoor gardens on window ledges and in special containers, there are many ways to keep gardening all year.

Growing plants and flowers, both indoors and outdoors adds an element of beauty to your yard and home that can be very satisfying. It's also profitable. Well-placed trees, shrubs, flowering plants and an attractive lawn can increase the value of your property by as much as 10 per cent.

A greenhouse or solarium, or miniature indoor gardens that allow you to garden year-round, also add beauty and value to your home. A greenhouse, in fact, can be therapeutic. Not only can you watch flowers bloom and harvest vegetables and herbs 365 days of the year, you can work the soil and tend to it regardless of weather conditions.

So, if you don't want to give up the spade this fall, begin to consider the following options now:

Bringing your fancy annuals indoors

In addition to the inexpensive annuals, such as impatiens and petunias, most of us plant to add colour to our gardens every spring, consider investing as well in more expensive, but interesting and hardier annuals.

It's well worth the extra investment because most of these more expensive annuals will winter quite well inside your home, adding colour and brightness to those dull, dreary winter days.

Plants that perform well over the winter include hibiscus, lantana, Mexican heather, passion flower, lithodora, the Mandevilla hydrid, geraniums and others available in spring at most garden centres.

After enjoying their beauty all summer long, cut them back before the first frost in fall, pot and place them in a bright spot indoors until the following spring when you can slowly re-introduce them to the outdoors. Don't forget to include some herbs, such as rosemary, which stay well indoors over the winter too. Don't expect the plant tags to tell you these plants can thrive for more than one summer, though.

Invest in a greenhouse

A greenhouse can be the key to year-round gardening for many avid gardeners. There are many greenhouse models on the market today, in varying sizes and prices, to choose from. You can build your own, buy prefabricated kits which must be assembled, or have one custom built for your home.

Greenhouse gardening requires plenty of sunlight. So, choose the location carefully and consider the possibility of future expansion when deciding on the size. Greenhouses require fans, heaters, vents, sprinklers and shelving units. A variety of glazing materials are used to promote thermal efficiency, including glass, acrylic, film and polycarbonate. These materials can increase the rate of plant growth by as much as 50 per cent.

A greenhouse can be an avid gardener's dream come true. You can grow exotic plants and vegetables, experiment with new gardening techniques, and experience the warmth of a summer garden on the coldest of winter days.

Creating an indoor garden

Greening your home with indoor plants is fun and a bargain compared to filling up and brightening spaces using furniture and other decorative techniques. You can hang them from the ceiling, set them on tables and other furniture pieces, perch them on window sills, prop them in empty corners -- the possibilities are limitless.

Don't settle for just simple houseplants, There are many varieties of plants to choose from, including dwarf trees that can easily raise a crop of grapefruits, lemons or oranges right in your living room -- but you should expect a three to five year wait for the first fruit to develop.

If you don't have a big home or big ideas about indoor gardening, miniature houseplants can be very cheerful and great decorators. Because they occupy less space, you can also grow more of them and in greater variety. Dwarf geraniums, for example, will bloom over and over again. Small pots of colorful cacti will do well on a narrow window sill.

Windows can be the best places to decorate with a living garden, as long as the plants are not haphazardly arranged. It should be an artistic composition, an arrangement of plants and containers that create an attractive, refreshing and charming effect.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

Sometimes, all it takes is a few simple fix-ups to improve the look of your home and make it more marketable. Even if you don't plan to sell in the near future, a change of face can make your home more comfortable and appealing.

If your kitchen, bathroom and other rooms in your home look weary and tired but you can't afford to tear everything out and start over again, here are a few cost-effective solutions to consider:

Re-surface cabinets and counter tops

This is the way to go if you're happy with the layout of your kitchen, for example, and want to avoid a major renovation. Re-surfacing counters and cabinets will give you a whole new look for a lot less money.

Visit home improvement showrooms and see what products and styles are available. You can also ask a design consultant to come to your home and recommend different options. Sometimes, just painting the cabinets and changing the hardware can transform the look of a kitchen or bathroom overnight.

Update your floors

With today's many flooring options, there's no need to put up with worn carpets and tile floors. You can choose from install-it-yourself linoleum sheet and tiles to trickier hardwood applications. In addition to visual appeal, consider comfort, life span, cost and maintenance when considering re-doing your floors.

Sometimes, something as simple as adding a throw rug under a table or beneath chairs will add the warmth and colour you're looking for. Just ensure they are easy to clean and don't require a lot of upkeep.

Use light to brighten, set mood

Lighting creates atmosphere and mood in a room. Adding or changing existing ceiling fixtures, wall washers and pot lights can change the function of almost any room. For maximum flexibility, nothing works better than a floor or table lamp.

There are a huge number of options available when it comes to choosing the right lighting for any room. Is your kitchen really drab, or just too dark? Maybe all it needs is new track lighting that puts the spotlight where you want it. Under-cabinet task lighting makes work easier and safer and brightens those dark counter areas.

Whether used to highlight decor, set a mood, light work areas, or provide safety and security, new lighting is an easy and inexpensive way to make your home come alive.

Re-upholster your furnishings

Sometimes it takes more than a paint job and new floors or carpets to spruce up a room, especially if the fabric on your furniture looks tired and worn. If you are happy with the design of your furniture but crave new fabric colours and textures, re-upholstering can be less expensive than buying, for example, a whole new living or dining room set. Re-upholstering takes skill. Before attempting to re-upholster a furniture piece yourself, consider hiring a person who specializes in this craft.

While re-upholstering allows you to extend the life of an existing furniture piece, it isn't cheap. So, first determine exactly which furniture pieces you want to keep. You may just want to re-upholster a favourite chair or you may want to change the colouring of all the furniture in your living room. Be sure to carefully match the colour, texture and design of the new fabrics with your carpet or wall colours.

Change your window treatment

When you are considering changing window coverings, there is no shortage of selection. Blinds, shutters, sheers, shades, valances and just plain naked windows are only a few of your options.

The window treatment is often the most eye-catching aspect of a room. That's because windows serve as a visual link with the outside world. They are also the primary source of natural light in your home. Begin by deciding how important privacy is to you and whether you want your windows to admit air and light into the home.

If your windows reveal a pleasant view and privacy is not an issue, you may want to use minimal coverings that can be easily pulled back. Also, consider location. If your windows face north, you should aim to let in as much light as possible. If they face south or west, you may want to cut back on the amount of light.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

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?"

Each weekend in spring and summer you'll find yard sales popping up in neighbourhoods everywhere. And, where there are yard sales, there are yard sale "junkies." For many people, scouring yard sales for a bargain on a Saturday morning is an art. Why not take advantage of that fact to make some cash off your cast-offs and have fun while you're at it.

The Ontario Real Estate Association and your local Realtor offer the following tips to host a successful yard sale:

First, settle on a date and time for your sale. Weekends are virtually universal for yard sales, and most run from 8 or 9 a.m. until 4 or 5 p.m. You'll also need to set a rain date, usually the next day if your sale is on a Saturday, or the following weekend if your date is Sunday.

Most sellers advertise by posting signs on lamp posts and hydro poles. This is a more effective way of letting people know you're open for business than you might suspect. Veteran buyers (see below for more) will scout a neighbourhood during the week looking for telltale flyers. Many of your customers will use this method.

Have someone present at all times. Theft is unlikely, but many sellers have learned the hard way that it does happen. Placing valuable items closer to your sales desk is a good idea.

Running out of change is also a problem that plagues many sales. As most of your transactions will involve small amounts, it never hurts to have $50 or more in small bills and loonies and twoonies at hand. Buyers will often stop at a bank machine before they come, so expect to get a lot of tens and twenties early in the day.

Think like a yard sale buyer The ability to deliver the kind of goods and service that buyers want is perhaps the most important factor in the success of your sale. There are a number of items that are always in high demand: art, antiques (even distressed pieces), furniture, appliances, electronic equipment, tools, and lately, computer games and accessories. If you have goods in any of these categories, mention them in your flyer or ad.

Surprisingly, many veteran yard salers are not interested in old clothing. Unless you've got something special to offer, you can expect to turn much of your old wardrobe over to charity.

As to pricing your goods, nothing turns away a potential buyer more than a price that is too high. You can always expect haggling, but most won't even bother if you price an old lamp at $20, when similar items can be had for $5. The best plan of action is to attend a few sales the week before, and find out the going prices.

How you physically place your goods can also make a big difference. Don't clutter up your yard, and make sure your items are separated by category. This is a great opportunity to be creative. For example, there is a mini-boom in memorabilia from the 50s, 60s and 70s. Believe it or not, the old Lava Lamp you consider trash, might be exactly what someone else is looking for.

Another good tip that will help make a sale is to offer free coffee to your visitors. A friendly face and a free cup of java can do wonders. Or if you want to get the kids involved, have them set up an old-fashioned lemonade stand and charge five cents a cup.

Depending on the type of items you're selling, you can expect to make as little as $20 or as much as a couple of hundred.

Finally, the success of a yard sale is measured by the amount of additional space you have in your house after the yard sale is over, and the amount of money you make. Now you may be tempted to run out and purchase more items that will likely end up in your next yard sale. But, why not celebrate your success by spending the money on dinner at a nice restaurant for the family and whoever helped at the sale.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

Window coverings play a leading role in the interior of home. They can help set atmosphere and can be both attractive and functional. Windows now come in a variety of new shapes and sizes, which has put increased demand on window covering manufacturers to create new products.

Many new and custom-built homes have windows that are rounded, or that stretch from floor to ceiling. For owners of older homes, installing new windows is often high on their "must do" list, and each window often requires a different application. Whatever the window shape, there are probably more window covering choices in terms of pattern, colour scheme, and design than ever before.

Drapery Options

Today, families look at their homes as a place to retreat. Some people have called it "cocooning." This is reflected in the recent trend towards the traditional look, with the heavier fabrics and fuller drapes of days gone by. Drapes, with an interesting pattern and strong colour, are often combined with simple sheers or matching, lighter-weight balloon curtains.

Drapes are popular when matched with a covered valance or when they flow into a gentle or full swag. Drapes can make a strong fashion statement when they are accented by colour-coordinated or differently designed hooks and rods, or tied back in unusual ways.

Tassels are being revived again. Made of cord or rope and especially popular during Victorian days, tassel tie backs are practical with heavier fabrics. It's a look that is well suited to older homes with high ceilings because it creates an elegant graceful appearance.

Drapes in a print of pattern that pick up the primary colour, with a matching covered valance, will set the tone for the room especially if the same fabric is used to cover a lamp shade or used as a wallpaper border.

A combination of drapes tied back into a full swag with interior shutters is another popular look. This combination is particularly appealing on a bay window, with the drapes used as a side panel. Balloons (a fabric which gathers at the top of the window and swells out) can be used as a valance or alone to cover the entire window creating a warm and elegant feeling in the room.

Other Window Coverings

Balloons, blinds and verticals that have lead in popularity for the past five years are being replaced and upgraded. You can give verticals a new look by teaming them with an interesting valance or by adding drapes to blinds and blinds to balloons.

Another attractive option that can be used with any décor is the "shirred" curtain, a panel that is gathered on a rod both at the top and the bottom. Often used on door windows, it has become a popular and pretty way of covering the bottom half of a window.

Just as window-covering options are unlimited, so are the costs particularly when it comes to custom drapery. The major expense is not in the labor, design, or consulting fees, but in the fabric, especially if it is imported.

With so many window coverings to choose from, you may want to consider consulting an interior decorator to determine the best fit for your décor.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

Even on the dullest winter day, colour fills our lives.  Look around and you'll see a thousand shades of greens and browns, violets, greys, golds and blues.  Colour is also part of our language.  Few of us will dispute that it affects our moods and how we feel -- red with anger, green with envy, yellow with fear.

For these reasons, colour is also the decorator's most powerful tool.  No other design element has the quick impact or dramatic effect of colour.  If you want to add appeal and value to your home, there is no faster and often cheaper way than by using colour.

Whether it's a quick, relatively inexpensive pick-me-up paint job, new window coverings, complimentary wallpaper borders, new carpets, floors or other interior/exterior home improvements, colour can transform any room, cupboard or furniture item.

Before getting started, consider what you want to achieve.  Do you want to make a room or window look larger or smaller, a ceiling higher or lower? Do you want the atmosphere to be lively or restful?  Businesses, especially restaurants, often use colours such as bright, warm orange to enhance appetites.  Manufacturers often use red to draw attention to packaging.  Hospitals use restful colours like blue green to soothe people.

Selecting colours

Just as colours in clothing move in and out of fashion, so do colours in interior decoration.  The past decade saw a swing back to bright, dark colours, including very popular greens and reds that reminded us of rich spices.  It's anyone's guess what the next trend will be, but the neutral classics will always remain.

Choosing colour combinations for your home isn't that easy.  It requires commitment.  Whatever you do, you may have to live with it for a while.  Also, if you have plans to sell your home, you want to consider colours that will also appeal to prospective buyers.  When people view a home, they like to imagine how their own belongings will look in it.  Purple walls or furnishings in your home may make it difficult.

Colours also look different in combination with other colours and in different types of lighting.  A red may appear cold under a fluorescent light, but much warmer in a room with lots of natural light.  A deep blue may look bright and intense in a well-lit area, but cold and gloomy in a dark room.  Beige may seem dull and boring, but add a little yellow, green or orange and it comes alive.

The amount of colour also affects how you see it.  An all-red interior is too stimulating for most homes.  Red is best used as an accent to add drama and intrigue.  But beware of high-contrast situations.  Used in large areas of white or green, for example, red can also be trying to the eyes.

Colours affect our emotions and perceptions.  Red has been known to send the heart-rate up.  Orange and peach are associated with comfort and security.  Purple, through its association with religion, is often associated with mourning.  Research suggests that blue not only has a calming affect on people, but may actually lower blood pressure.  It is associated with purity and cleanliness and is at the top of the popularity chart for most adults.  Green is considered the most peaceful colour.

Some decorating tricks

• Warm colours like reds, pinks, yellows and oranges will generally make a room feel warmer, smaller and friendlier.
• Cool colours like greens and blues create a cooling, calming affect. They seem to push back the walls of a room and make small spaces appear bigger.
• Light, cool colours can make a small room look larger and brighter.
• Dark, warm colours can turn a large, cold room into something more inviting.
• Neutral shades make a room more flexible for any type of furniture.
• Raise a ceiling by painting it a lighter colour than the walls; lower it by painting it a darker colour, or by adding a darker border where the wall meets the ceiling.
• Shorten a long hallway by painting the end walls a darker, warmer colour.
• Use colour on furnishings to add brightness and drama. Pastel furnishings look smaller in a room, while deep, bright furnishings look bigger.
• Camouflage eyesores, such as old radiators, by painting them the same colour as the walls.
• Try to have a natural, complimentary flow of colour from one room to another.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

The one thing about participating in the real estate market that confounds most consumers is the terminology and jargon that must be learned. But, as with any business, in order to be successful as a buyer or seller, it is necessary to become familiar with certain concepts and words.

The real estate business is somewhat unique in that it is not confined to one particular set of dealings. Instead, it encompasses a number of professions: financial, legal, governmental, building trades, and of course, real estate itself.

So, from A for amortization to Z for zoning regulations, here is a quick run-through of some the important real estate terminology you'll encounter:

Amortization: The number of years it will take to pay off the entire amount of a mortgage. In Ontario, most mortgages are amortized over 25 years.

Appraisal: An estimate of a property's market value. This is used by lenders to determine the amount of your mortgage.

Assessment: The value of a property set by the local municipality. The assessment is used to calculate your property tax.

Assumable Mortgage: A mortgage held on a property by a seller that can be taken over by the buyer. The buyer then assumes responsibility for making payments. An assumable mortgage can make a property more attractive to potential buyers.

Blended Mortgage Payments: Equal or regular mortgage payments consisting of both a principal and an interest component.

Broker: A real estate Professioal licensed to facilitate the sale, lease or exchange of a property for a Brokerage.

Bridge Financing: Money borrowed against a homeowner's equity in a property (usually for a short term) to help finance the purchase of another property or to make improvements to a property being sold.

Buy-down: A situation where the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and market rate directly to the lender. Or, the difference can be paid to the purchaser in one lump sum or monthly instalments. A buy-down can make a property more attractive to potential buyers.

Closed Mortgage: A mortgage that cannot be prepaid, renegotiated or refinanced during its term without significant penalties.

Conventional Mortgage: A first mortgage issued for up to 75 per cent of the property's appraised value or purchase price, whichever is lower.

Debt Service Ratio: The percentage of a borrower's gross income that can be used for housing costs (including mortgage payments and taxes). This is used to determine the amount of monthly mortgage payment the borrower can afford.

Easement: A legal right to use or cross (right of way) another person's land for limited purpose. A utility's right to run wires or lay pipe across a property is a common example.

Encroachment: An intrusion onto an adjoining property. A neighbour's fence, shed or overhanging roof line that partially or fully intrudes onto your property are examples.

First Mortgage: The first security registered on a property. Additional mortgages secured against the property are termed 'secondary'.

High-Ratio Mortgage: A mortgage for more than 75 per cent of a property's appraised value or purchase price.

Listing Agreement: The contract between the listing broker and an owner, authorizing the Realtor to facilitate the sale or lease of a property.

Mortgage: A contract between a borrower and a lender where the borrower pledges a property as security to guarantee repayment of the mortgage debt.

Mortgage Term: The length of time a lender will loan mortgage funds to a borrower. Most terms run from six months to five years, after which the borrower will either pay off the balance or renegotiate the mortgage for another term. Payments are calculated using the interest rate offered for the term, the amount of the mortgage, and the amortization period.

Multiple Listing Service (MLS): A comprehensive system for relaying information to Realtors about properties for sale.

Open Mortgage: A mortgage that can be prepaid or renegotiated at any time and in any amount without penalty.

Partially Open Mortgage: A mortgage that allows the borrower to pre-pay a specific portion of the mortgage principal at certain times with or without penalty.

Realtor: A trademarked name describing real estate professionals who are members of a local real estate board and the Canadian Real Estate Association.

Transfer Taxes: Payment to the provincial government for transferring property from the seller to the buyer.

Vendor Take-Back Mortgage: A situation where sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.

Zoning Regulations: Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

The one thing about participating in the real estate market that confounds most consumers is the terminology and jargon that must be learned. But, as with any business, in order to be successful as a buyer or seller, it is necessary to become familiar with certain concepts and words.

The real estate business is somewhat unique in that it is not confined to one particular set of dealings. Instead, it encompasses a number of professions: financial, legal, governmental, building trades, and of course, real estate itself.

So, from A for amortization to Z for zoning regulations, here is a quick run-through of some the important real estate terminology you'll encounter:

Amortization: The number of years it will take to pay off the entire amount of a mortgage. In Ontario, most mortgages are amortized over 25 years.

Appraisal: An estimate of a property's market value. This is used by lenders to determine the amount of your mortgage.

Assessment: The value of a property set by the local municipality. The assessment is used to calculate your property tax.

Assumable Mortgage: A mortgage held on a property by a seller that can be taken over by the buyer. The buyer then assumes responsibility for making payments. An assumable mortgage can make a property more attractive to potential buyers.

Blended Mortgage Payments: Equal or regular mortgage payments consisting of both a principal and an interest component.

Broker: A real estate Professioal licensed to facilitate the sale, lease or exchange of a property for a Brokerage.

Bridge Financing: Money borrowed against a homeowner's equity in a property (usually for a short term) to help finance the purchase of another property or to make improvements to a property being sold.

Buy-down: A situation where the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and market rate directly to the lender. Or, the difference can be paid to the purchaser in one lump sum or monthly instalments. A buy-down can make a property more attractive to potential buyers.

Closed Mortgage: A mortgage that cannot be prepaid, renegotiated or refinanced during its term without significant penalties.

Conventional Mortgage: A first mortgage issued for up to 75 per cent of the property's appraised value or purchase price, whichever is lower.

Debt Service Ratio: The percentage of a borrower's gross income that can be used for housing costs (including mortgage payments and taxes). This is used to determine the amount of monthly mortgage payment the borrower can afford.

Easement: A legal right to use or cross (right of way) another person's land for limited purpose. A utility's right to run wires or lay pipe across a property is a common example.

Encroachment: An intrusion onto an adjoining property. A neighbour's fence, shed or overhanging roof line that partially or fully intrudes onto your property are examples.

First Mortgage: The first security registered on a property. Additional mortgages secured against the property are termed 'secondary'.

High-Ratio Mortgage: A mortgage for more than 75 per cent of a property's appraised value or purchase price.

Listing Agreement: The contract between the listing broker and an owner, authorizing the Realtor to facilitate the sale or lease of a property.

Mortgage: A contract between a borrower and a lender where the borrower pledges a property as security to guarantee repayment of the mortgage debt.

Mortgage Term: The length of time a lender will loan mortgage funds to a borrower. Most terms run from six months to five years, after which the borrower will either pay off the balance or renegotiate the mortgage for another term. Payments are calculated using the interest rate offered for the term, the amount of the mortgage, and the amortization period.

Multiple Listing Service (MLS): A comprehensive system for relaying information to Realtors about properties for sale.

Open Mortgage: A mortgage that can be prepaid or renegotiated at any time and in any amount without penalty.

Partially Open Mortgage: A mortgage that allows the borrower to pre-pay a specific portion of the mortgage principal at certain times with or without penalty.

Realtor: A trademarked name describing real estate professionals who are members of a local real estate board and the Canadian Real Estate Association.

Transfer Taxes: Payment to the provincial government for transferring property from the seller to the buyer.

Vendor Take-Back Mortgage: A situation where sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.

Zoning Regulations: Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

A home inspection prior to purchasing a home or condominium can bring peace of mind when you sign the sales contract. Knowing what to expect both inside and out will help you make an informed decision about the value of the home and the future upkeep.

A home inspection accomplishes two important goals. First, it gives you a chance to determine the condition of the house, its structural soundness, and the condition of its mechanical systems. Second, it brings any problems to the seller's attention at a time when they can be resolved before closing a sale.

If you sign a contract before inspection, consider including a clause that the sale is contingent upon a satisfactory structural inspection, and specify when the inspection is to be carried out. That way, you are protected.

A comprehensive inspection includes a visual examination of the structure from top to bottom, including the heating, air conditioning systems, the interior plumbing and electrical systems, the roof and visible insulation, walls, ceilings, floors, windows and doors, the foundation, basement and visible structure.

Following the examination, the inspector will provide a report that not only points out possible defects or areas of concerns, but also the positive aspects of the structure as well as the type of maintenance that will be necessary to keep the home in good shape.

Even the most experienced homeowners lack the knowledge and expertise of a professional inspection firm. For example, watermarks in the basement may indicate a chronic seepage problem, or simply may be a result of a single incident.

A professional assessment will provide complete information about the condition of the property you are considering and will help avoid any unpleasant surprises after the sale. In addition, a home inspector can remain totally objective, while you as a prospective homebuyer may be emotionally involved.

The inspection fee for a typical single-family house can vary depending upon the geographic area. The particular features of the home such as size, age and special structures will be taken into consideration. A decision to have a home inspected is a good investment. You might save many times the cost of inspection by being aware of defects, maintenance requirements, and upgrading requirements.

Good decorating should not sell you on a house. Remember, you're also buying structural and mechanical systems. Walk through a house twice before you hire an inspector. The first time, look at the rooms, the floor plan, and envision your own decorating ideas for the house. The second time, go back and look at the condition of the walls, doors, appliance, and plumbing. If the home still looks good after two visits and you're getting serious about the purchase, hire an inspector.

Inspectors should be licensed in building-related fields; architects, contractors, and structural engineers are good examples. When interviewing a potential home inspection firm, carefully inquire about the specifics of their work and company. Ask how long they have been in business, ask for references from previous customers. Find out what type of insurance they carry and do they guarantee inspections?

A home inspection usually lasts about three hours. Professional inspection companies will be happy to answer all your questions. Avoid firms that issue only a verbal report. The report should be in narrative form, not just a checklist of items inspected. The home inspector should also issue a written report with accurate cost estimates for any major defects discovered during the inspection. You may find it valuable to accompany the inspector as he goes through the house.

Property inspections are not limited to residential properties. Many inspectors help homeowners with analysis and solutions to specific problems such as energy conservation, wet basements or cracked foundations. Inspectors also inspect work upon completion to ensure that a contract has been properly fulfilled.

If you are considering purchasing a home, the Canadian Real Estate Association advises that you invest in an inspection by a reputable and qualified inspection firm. Buying a home is one of the biggest decisions you will make. Know what you are buying and what your future upkeep obligations will be.

For more information regarding home inspections contact the Canadian Association of Home and Property Inspectors BC at http://www.cahpi.bc.ca/.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

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.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

So you've decided you want to stop paying rent and buy your first home. You're not alone. With interest rates at their lowest in decades, many people have discovered that mortgage payments can be significantly lower or at least comparable to the rent they are currently paying.

Making the decision to become a homeowner is the easy part since buying a home is a great investment in your future. For many people, it's no problem to keep up the monthly mortgage payments and other costs associated with home ownership. But what usually holds first time buyers back is the initial down payment required to obtain a mortgage.

How much can you afford?

The first thing you need to determine is how much house can you realistically afford? It's a good idea to talk to a Realtor for help in this area. A Realtor is skilled at helping people make their dreams of home ownership come true. He or she knows how to assist you in assessing your needs and wants and can then match them with homes in your price range. As well, he or she will help you understand property financing, taxes, insurance and the process you will go through as a first time buyer to complete a real estate transaction.

Your Realtor can also offer advice on ways to save your down payment faster. He or she will likely suggest you take advantage of government programs such as an RRSP loan or the Ontario Home Ownership Savings Plan (OHOSP). Another option your Realtor can help you explore is a high ratio mortgage. A high ratio mortgage requires a smaller down payment than a conventional mortgage because it is insured by the CMHC (Canada Mortgage and Housing Corporation). Talk to your Realtor for details on how these programs work.

Once you know your price range and have a down payment plan in the works, your Realtor will work with you to find the "home of your dreams." For most people, their first home is more modest than the true home of their dreams, but it is a start and will be much more affordable.

When you have found the right home, your Realtor will be there to negotiate on your behalf to get the best purchase price possible. He or she will make sure your interests are covered in the purchase and sale agreement and will help with all the details required to complete the transaction.

A Realtor's knowledge, expertise and negotiating skills will ensure your first time home buying experience is a dream come true and not a nightmare.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA

New homeowners often find there's more to keeping up a house than cutting the grass and clearing snow from the driveway.

Tools

To start with, a new homeowner needs to have on hand a 'basic tool kit'. A number of basic tools are a must C a metal hammer, screwdrivers with a variety of heads, a small saw, electric drill, adjustable wrench, pliers and measuring stick. Sandpaper and an assortment of screws and nails are also very handy. These tools will help with simple repairs such as securing loose tiles, adjusting a door, installing a lock, etc.

Meters

Once you're equipped to perform the most basic repairs, take a look around. Do you know where your gas/electricity and water meter are located? Usually these are found outside the home by a side or back wall. This makes it easy for the meter reader who can take the readings without bothering you. Sometimes these meters, especially the water meters in older homes, are located indoors -- usually in the basement.

As new homeowners, it's a good idea to check your meters on a weekly or monthly basis. This will help you gain an understanding of seasonal increases and decreases in consumption and enable you to take measures to become more energy/water efficient.

Plumbing

Another area where a little knowledge can go a long way is in the plumbing system. House plumbing is divided into two separate parts. One is the fresh-water system that provides cold and hot water from the various fixtures throughout the house; the other is the drainage system that carries waste out of the house.

The fresh-water system can be completely shut down by closing the main valve, which is usually located in the basement near where the underground water line enters the house. Most lines that branch out from the main line also have individual shut-off valves so water can be turned off to one area without disturbing the flow in another. Most plumbing jobs require at least the partial shut-off of your home's water supply.

Meanwhile, the drainage system connects all the plumbing fixtures to a main sewer line that carries waste out of the house to a sewer or septic tank. The main sewer line extends above the roof of the house to allow gases to escape. The opening of this pipe, above the roof, is called a vent and must never be covered or allowed to become clogged with debris.

Electrical

Knowledge of your home's electrical system is also valuable in case you have to turn off all power in case of an emergency, such as a fire. You should know the location of the main electric switch in the house and how to use it. You should also know the location of the fuse box or circuit breaker and how to reset a breaker or replace a fuse in case one blows.

The main switch, along with the circuit breaker panel or fuse box, are located near the electric meter at a point close to where the power lines come into the house. They may be in the basement, utility room, or even the kitchen. The older the home, the more likely it will have a fuse box instead of a circuit breaker panel. Always replace fuses with ones of the same capacity.

Heating

Another important aspect of your new home is its heating system. The more familiar you are with it, the less likely you might find yourself cold on a winter's day. Heating systems are usually fueled by oil, gas, electricity or wood.

Gas-fired and oil-fired heating systems have burners and should be inspected regularly, usually once a year before the start of the heating season. Gas burners have pilot lights. You should learn to re-light the pilot light on your gas burner in case it ever goes out. You should also know the location of the gas shut-off valve so you can turn off the gas in case the burner doesn't light or you smell gas escaping.

Heating systems operate in a variety of ways. The better you understand your system, the safer and more efficient you can make it.

Hazards

Fire in a home is a major hazard that all new homeowners should be aware of. Early detection is the key to protecting your family and keeping damage to a minimum. Ensure your home has smoke detectors installed in hallways and bedroom areas. Smoke detectors sound an alarm when smoke is in nearby air, even if there is no intense heat. Ideally, you should have a smoke alarm in each bedroom.

If you have a gas-fired heating system or a fireplace in your home, it's also a good idea to install carbon monoxide detectors in the bedroom areas. Carbon monoxide is a colorless, odorless, tasteless toxic gas that, at high levels, can cause flu-like symptoms and even death.

While carbon monoxide detectors are not a substitute for proper care and maintenance of your home, they provide a good second line of defense by sounding an alarm when carbon monoxide reaches an unsafe level.

When we purchase a home, most of us want to turn it into a safe and secure haven for our families. The more we know about the home we have purchased, the more efficient and effective we can be.

Article Provided by: David Pusey Personal Real Estate Corporation

Source: OREA