While traveling through London a few weeks ago, my wife and I were able to cut costs by staying with friends. Since buying their place a year ago, our friends were keen to show off the home’s special features, including a bright garden lined with dark brown, antiquated railway ties. Nice touch.

But it was the parts of the house I couldn’t see that I was most interested in: the second floor. You see, in London, at least, owning a home doesn’t necessarily mean owning the whole house; co-ownership is common, especially as house prices climb, pushing potential buyers outside of the market. Live downtown? Would love to, if only I could afford to buy and not just rent; plus, the houses are just too big. Solution: shared ownership.

In North America, where this type of co-ownership isn’t as common, sharing a house usually means finding a buying partner and then retrofitting the place, either vertically (dividing the house in half from basement to attic) or horizontally, with one owner taking the bottom and one taking the top. In most cases, the two units will not be defined legally as separate dwellings, so the house title and the mortgage will be singular. In other words, unlike the U.K., where a single floor—a flat—can be defined as a dwelling, and carry its own mortgage and title, North Americans must choose their partners wisely or risk mortgage-payment fiascos and other shared-property problems related to renos and repairs.

Still, risk acknowledged, shared ownership can be a smart move so long as you’re prepared to do some extra planning and, let’s face it, live with other people. Because even if you build separate entrances, you’re still sharing space, so make it formal by writing up a set of rules and protocol for things like emergency repairs, large-scale fixes (what happens when the roof needs an update in a few years?), and, most importantly, what to do if one person wants out of the agreement. Like any investment, co-ownership carries risk and reward.

While the U.S. Census Bureau no longer gathers statistics specifically focused on home renovations, up in chilly Canada yearly stats are published on what’s happening in the world of remodelling, compiled by the Canadian Mortgage and Housing Corporation (CMHC).

Usually, what’s happening in America is happening in Canada—economically speaking. Usually, but not always; it seems like Canada is charting its own future these days. Unlike American builders and renovators, which have taken a hit since the economic slowdown and credit crisis began, Canadian contractors are doing well.

In 2007, Canadians spent close to $19.7 billion on home renovations—about 37 per cent of households across 10 major cities from Vancouver to St. John’s, N.L., according to the recently released CMHC Renovation and Home Purchase Report. An estimated 1.5 million households completed some form of reno in 2007, and while this number is down slightly from 2006, when 39 per cent of all households renovated, things are not exactly cooling off.

Homeowners across Canada spend an average of $12,800 on renovations in 2007, an increase of more than $1,000 compared to 2006. The highest average amount spent was in Calgary, at $15,600, and increase of $3,000 over 2006. The lowest average for 2007 was Winnipeg, at $7,900, a decline of more than $2,000 from 2006.

Statistics Canada divides home renovations into two categories: improvement/alteration, which refers to work done to increase the enjoyment or value of the home, such as a deck or addition; and repair/maintenance, a renovation undertaken to keep the home in working order. According to the CMHC report, 59 per cent of households renovated for improvement, 48 for repair or maintenance, seven per cent to add more space and five per cent to make their home more energy efficient.

More stats: 31 per cent of renovating households remodelled a room, followed by painting/wallpapering and flooring/carpeting, at about 27 per cent. In Ottawa and Edmonton, 20 per cent of all reno projects in 2007 involved some type of major landscaping or exterior addition, including patios, swimming pools and outdoor kitchens.

Selling your home is an involved process that affects your family and your future. Before you begin this process, you’ll want to ensure you have the most up-to-date information.

When should you sell? How do you get the best price? What kinds of renovations should be made prior to the sale? We’ve prepared this Home Selling Guide to assist you in answering the many questions that arise during the home selling process. When you’re armed with the right information, and an experienced real estate agent, you’ll be closer to reaching your goal - selling your home fast, and for the best price.

Thinking of Selling?
This section gives you some insight into the many factors that affect a selling decision, including economics, interest rates and supply and demand. You’ll also find information on determining the best price, selling a home yourself and avoiding common seller errors.

Getting Ready
Choosing the right real estate agent, understanding market conditions and having all your documents in place will ensure the selling process runs smoothly.

Marketing Your Home
This section provides you with some valuable information on getting your home ready for showing, making repairs before you sell, and ensuring the showing of your home goes smoothly.

Screening Offers
This section walks you through the offer process, understanding the specific items on an offer to purchase, along with knowing what to look for when you hire a lawyer. In addition, there are five key reasons why a home is not selling in a good market.

Closing
While your home has sold, here is a review of the items that need to be completed, including adjustments, net proceeds, closing costs and possession date.

**Article provided by Justin Havre & Mike Hannah , C.I.R. Realtors
Providing the latest Calgary real estate listings including Aspen Woods, Chaparral, Cougar Ridge
Cranston, Tuscany, West Hills, West Springs, McKenzie Towne, New Brighton & Springbank
Tel: (403) 294-1500 Fax: (403) 266-0941

Chris Paulsen
cpaulsen@homerenovationguide.com

What is real estate fraud?
Fraud can affect any type of property, whether it’s real estate, monetary investments or items you buy like paintings. There are several types of real estate fraud:

• Stealing title: when the crook changes the ownership or title of your property into his or her name. The crook may intend to sell the property or mortgage it behind your back. In either case, the criminal is fraudulently impersonating you and/or forging your signature.

• Obtaining an illegal mortgage: when the criminal leaves title or ownership in your name, but puts a mortgage on it illegally. Once again, you (and the lender under the mortgage) are the victim of an impersonator and or forger.

• Value fraud: where you are tricked into believing the property is worth considerably more than it is. Remember that there is nothing necessarily illegal about buying low and selling high, unless it involves fraudulent concealment or intentional misrepresentation (such as giving you a forged appraisal or fraudulent comparables).

Why is real estate fraud happening?
Real estate fraud is a continent-wide, if not global, phenomenon. So, there is nothing unique about Canada that is making our properties vulnerable to it.
It is likely related to the upsurge in identity theft, which is reported about regularly in the media. As population centres have grown in North America and people have become more mobile, those involved in the real estate industry (such as sales agents, mortgage brokers, lenders and lawyers) are less likely to know all of their clients on a long-term basis. When towns were small and everyone knew each other, it was pretty difficult to impersonate a local landowner to steal title!

These developments are compounded by the rise of the Internet, which makes obtaining a mortgage loan, for example, more convenient while (to some extent) de-personalizing the process.

*Article courtesy of Titleplus.ca - Now That’s Protection
Chris Paulsen
cpaulsen@homerenovationguide.com

Renovating your home can be an exciting and rewarding process. Whether you are making modest changes in one or two rooms, or you are transforming the entire house into a dream of a lifetime, the process can be pleasant and smooth, if you take the time to plan your project carefully.

The Renovation Council of the Greater Vancouver Home Builders’ Association (GVHBA), suggests that homeowners can ensure a successful renovation if they follow these 10 steps:

1. Do your homework. Advance research is the key to getting what you want. Study magazines and books to get an idea of the look you want. Visit friends, family members and colleagues who have renovated recently. Consider your lifestyle and the needs of your family, both in the short and long term.

2. Find out how much you can afford. Once your have a firm idea of the kind of renovation you would like to undertake, it is time to decide how you are going to pay for it. If you are thinking about using outside funds, discuss your borrowing needs and options with your lender. You will probably find that there are many financing possibilities to consider, from personal loans and lines of credit to home equity loans and homeowner’s mortgages.

3. Look for a professional renovator. Ask family and friends for recommendations. Drive around your neighbourhood to see who is renovating, then talk to the homeowners about their project. Most people are delighted to share their renovation experiences.

4. Get estimates. Obtain two or three different bids; more are usually not required. Make sure that you provide all the renovators with the same detailed information. It is important that they bid on the same job, or you will not be able to compare estimates. This information could be a description of the job including sketches, drawings, photographs and measures.For estimates involving major structural changes such as additions or moving interior walls, renovators may also need a set of plans. An architect could be a great help here. The set of plans includes site and floor plans, elevations and detailed drawings. The plan forms the basis for the estimating process and will also be used to obtain building permits. Be honest and open about your budget. The renovator will be able to make suggestions that will help you stay within your budget or provide alternative ideas to stretch your dollars.

5. Check references. Don’t omit this step just because you are too busy or “they seem like the right person for the job.”

6. Work out a contract. Don’t automatically take the lowest bid, unless you are certain that the renovator has properly understood what you want. Sometimes low bids turn out to be the most expensive in the end. When you accept the renovator’s offer, it’s time to write up a contract. Even the simplest of jobs should be outlined in writing because the contract is the basis of understanding between you and your renovator. Before signing a contract, read it carefully. Are you satisfied with the description of the work to be done? Does the payment schedule include holdbacks? Are the responsibilities of the renovator clearly spelled out? Remember that if something is not in the contract, then it’s your responsibility. Have a lawyer examine the contract before you sign it.

7. Plan how you will live during the renovation. Careful planning can greatly minimize inconvenience of living in the midst of a renovation. Talk to your renovator about the schedule of work to be done and how your daily routine might be affected. For instance, will the water be turned off for any length of time? Do you need to set up a temporary kitchen elsewhere in the home? Can major work be done in stages so as you always have a livable space? Discuss your expectations of the work crew and determine the work environment. The crew needs access to washroom facilities, telephones, water and electricity. Decide which areas of your home are off limits. It is a good idea to let your neighbours know that you are going to be renovating. Show them your plans and explain how long the work will be going on.

8. Establish a good working relationship and mutual trust with your renovator. Renovators and homeowners agree that a good working relationship is a vital ingredient in successful renovation projects. Keep lines of communication open at all times. Expect a brief report on the progress of your job at regular intervals, perhaps every evening. Be available to make decisions when they are needed so work is not held up, perhaps costing you more money. Don’t hesitate to bring your concerns to the attention of the renovator.

9. Try to stick with your first choices. Once work is underway, changes should be kept to a minimum. The details of your project are described in the contract, down to the finishing touches, from the basis of both the price and the schedule of your job. Changes could affect both significantly. Your GVHBA member renovator, however, wants you to be satisfied with the final result, and will likely attempt to accommodate any alteration in plans, as long as you accept a possible delay in completion and/or a change in price.

10. Be prepared to enjoy the results. Research, good planning, a professional work crew and open communication and trust, a recipe for a home renovation that you will enjoy for years to come!

Article compliments of the Greater Vancouver Home Builders Association, www.gvhba.org

For more information please visit their web site.

posted by Nikki Rollins nrollins@homerenovationguide.com

Congratulations! You have decided to purchase a home, or are thinking about buying one. With this choice, you’re joining the ranks of hundreds of families who realize that home ownership offers a number of benefits, including building equity, saving for the future, and creating an environment for your family. When you own your home, your hard-earned dollars contribute to your mortgage, not a landlord’s. The equity you earn is yours. Over time, your home will increase in value.

In this Home Buyer’s Guide, you will find the information you need to make a wise buying decision. We will take you through the planning process step-by-step, to help you determine which home is right for you. You will find a host of informative articles on mortgages, viewing homes, the offer, closing details and moving.

Pre-shopping
Before you start shopping for your home, why not give some thought to your lifestyle, the features you need and want, affordability, and the neighborhoods you prefer. With the information you will come closer to finding your perfect home – sooner!

Arranging a mortgage
Most people require a mortgage to purchase a home. This section explains the elements of a mortgage including type, terms, and how to qualify for one. In addition, choosing the right mortgage for your needs can help you retire this financial obligation sooner.

Viewing Homes
This section gives you some advice on making the most of your viewing experience. When you separate emotion from facts, and the condition of the house, you will be in a better position to purchase a home that meets both your needs, and your budget. You can also avoid any costly errors that could lead to future problems.

The Offer
This section explains the components of an offer and how it forms an essential part of your purchase.

Closing
Buying a home is a complicated process involving a buyer and seller, and lawyers for each of these parties. This section will explain the importance of a home inspection, title transfer, appraisal, and surveyor, to ensure you are legally protected.

The Move
While moving is inconvenient and disrupting there are some ways to make the move more manageable. You might even save some money in the process.

**Article and information courtesy of:

Justin Havre & Associates are a dedicated team of professionals with access to all of Calgary’s real estate opportunities. Be assured of a quality, comprehensive experience with these award winning realtors working for you.

Chris Paulsen
cpaulsen@homerenovationguide.com

In a hot market, there are more buyers than homes for sale. Prices rise, and the days a home is on the market may shorten to a week or even less. Some homes will sell before they are even registered in the local MLS. This can mean that some sellers are presented with multiple offers. How can you position your offer to be the one the seller accepts? The best way is to gain an understanding of how multiple offers work and how they benefit the seller. Multiple offers mean that the seller has their pick of offers, but that doesn’t necessarily mean a disadvantage for you as a buyer. You just have to determine how badly you want that particular home. If you want to compete in a multiple offer situation, here is what you will need to know: there are two things that matter to the seller – price and terms.

The sellers want the highest price possible, and terms that best are best suited to them. Both of these areas leave room for negotiation. Just because a seller is entertaining multiple offers doesn’t mean you don’t have a chance, but there will be only one winner.

To be that winner you have to hit the right note with the seller where the other contracts don’t. Just to give you an idea of how important terms are to the seller, let’s look at a hypothetical situation. You offer a seller the highest price for their home, but you put in the contract a condition that you must sell your home first before you close on the seller’s home.

It may seem reasonable to you, but this a condition that all sellers do not like. When they have a choice, they will not accept this condition. Sellers do not want to wait to see if a buyer sells their home first, before they know they have made a firm sale and will generally accept an offer with a lower price to avoid such a condition. The seller’s desire is to accept terms which meet their own needs, so keep conditions to a minimum.

Ask your agent to find out from the seller’s agent what terms will be most favorably viewed by the seller. If you can’t get there first, get there the best way you know how. In a multiple offer situation, the seller is not under any obligation to negotiate with the first buyer who submits an offer. So, if your offer is not the first offer, don’t panic. Because the seller has the liberty of choosing the best offer to negotiate, your offer stands a chance of being noticed.

As you already have learned, the seller will accept the offer that best reflects their needs. They not only consider price, they also look at such things as the buyers financial situation, what the buyer wants included or excluded from the sale, and the possession date. That means room to negotiate for you.

Believe it or not, the highest price doesn’t always buy the home. Sellers have a number of needs aside from price; they want a quick closing, or a delayed possession, or they may wish to exclude items in the home, and so on. Any offer which puts any of these goals at risk will not be looked upon as favourably as others that come closer to what the seller wants. Sellers are very interested in the buyer’s financial capability of completing a purchase.

A seller who accepts an offer from an unqualified buyer is taking a substantial risk. Should the offer fall through because the buyer fails to qualify for financing, the home will lose valuable marketing exposure and momentum. In a hot market, many sellers won’t even entertain offers presented by unqualified buyers. (Hint: Get pre-approved for a loan. Not only will you know exactly what you can spend, you will demonstrate your seriousness to the seller.)

Your seller may have a special need that is more important to them than price. For example, your seller may have a need to sell quickly, but remain in the home for a period of time until school is out or until a transfer takes place. Your ability to negotiate on this point may be more important than coming up with the highest dollar amount. You can offer a short-term lease after closing or offer to delay possession to accommodate your seller.

You can do a number of things to get the seller’s attention, such as work with your agent to determine the seller’s “hot” buttons, and act accordingly within your budget and your own needs. Deadlines can be deadly. Don’t assume that the seller has to respond to your offer by your deadline. Deadlines are only important to the seller if they plan to accept your offer without any changes.

To make their acceptance of your offer valid, they must accept it within the time limit you specified. If they are not going to accept your offer as presented and are going to make changes to the offer to see if you will accept their changes (this is called a sign back), they do not have to sign your offer back to you within your time period. They will be making a new offer to you and they will then put their own time limit for acceptance on their offer to you. Do not falter in the negotiations. Do not assume that because your seller is negotiating with you that they can’t entertain other offers.

All it takes is for one party to make a change that the other party doesn’t accept and negotiations are over and another offer can be presented and accepted. The seller may be waiting to see your best offer before accepting another offer that may already be on the table. Multiple offers often allow sellers to improve upon the asking price or terms.

The seller’s agent may be instructed by the seller to ask the buyers to “submit improved offers” and may set another presentation time where the seller will either accept the best offer or decide to “work with” the best offer to see if they can make a deal. There are many variations of the offer game and there are no specific industry guidelines in how multiple offers are to handled, but rest assured that there are very specific industry rules that everyone has to be treated fairly.

Hot markets don’t stay hot forever. They may be hot for a while, but there always comes a time when they will cool, at least for a while. The home you are so anxious to get now may level off in value very shortly. Make sure that this is the home you want no matter what the market conditions say. The home’s history may be helpful here.

Ask your agent to provide you with the home’s history or a history of comparable homes in the area. If similar homes have been sold several times in the last few years, the history can tell you how much was gained or lost by the sellers involved and what current price levels are, or at least were. Also, look at the affordability of the home. Are the extra considerations you are offering to stay in the game really worth it? Do they price the home out of your range? Will you be able to afford the other costs associated with move-in such as furniture and updates? Know when to throw in the towel.

There may come a time when it is wise to simply give up and move on to another home. Some sellers, in multiple offer frenzy, will simply make unreasonable demands and some buyers will accept them. Some offers will go beyond what can be justified by recent sold comparable homes or local lender guidelines. Lenders have a ceiling (created by prices of recently sold comparable properties … the appraisal).

Lenders are required by law not to lend more that a certain percentage of an appraised value, depending on the type of loan and insurance paid. In no circumstance can a lender finance more than 100% of the appraised value of a property. You should throw in the towel when you feel that the price has gone too far above what an appraisal might suggest.

The best way to position yourself as the buyer whose offer is accepted is to work closely with an agent who can help you step by step; from getting pre-qualified for a loan, to helping you find homes in your pre-approved price range, to showing you current market value statistics, to helping you negotiate the home of your dreams.

*Article is courtesy of Prudential Plus Properties