Pitfalls and Dangers of Selling Your Home Privately

9 Factors That Can Affect Home Insurance Premiums

Shopping for homeowners insurance can be puzzling. You get asked all kinds of questions, and then the provider comes back with quotes. You already know you should comparison shop, and this process proves it even more. Quotes can vary tremendously from carrier to carrier. It begs the question: How do home insurance providers set premiums, anyway?

There are many risk factors that companies take into consideration, and each weighs those factors differently. Here are 9 common risk factors that can affect your home insurance premium that you can keep your eyes open for when you are searching for a home.

 

1. Location

You probably considered location when purchasing your home, and insurance companies do the same when they calculate your premium. Your provider can look at a record of past claims in your area and estimate how likely you would be to file a claim. If you live in an area with high crime, you might expect your premium to go up.

2. Your credit and claims history

Providers likely will check your credit score and your claims history. They consider these items indicators of your potential insurance risk.

3. Replacement cost

This is the amount it would take to replace your home should there be a total loss. The size, composition and contents of your home are all factors in the total replacement cost. A larger, fancier home will cost more to replace than a more modest dwelling, so premiums will be higher.

4. Heating

Oil tanks have the potential for causing costly environmental hazards, so your provider may ask about the age and condition of your tank. There is much less risk associated with gas or electric heat.

5. Electricity

There are a few factors insurers take into consideration concerning electricity. Insurers know from experience that circuit breakers pose less of a threat than fuses, and they know that some older types of wiring, such as aluminum, can increase a chance of fire.

6. Pipes

Older plumbing is another risk factor. Galvanized and lead piping are indicators of an old system and could be more likely to crack or leak. Insurers prefer that homes have updated plumbing with copper or plastic pipes.

7. Wood stoves

More than 1 million Canadian families heat their homes at least partly with wood, according to the Canada Mortgage and Housing Corporation. National statistics on fires in Canada are hard to come by, but in Alberta, wood stoves and fire places were blamed for about 11% of fires in living rooms, according to the province’s annual statistical report.

8. Water accessibility

It’s no wonder that providers prefer that you live near a fire hydrant or fire station. The quicker the fire can be put out, the less damage is caused. Homeowners in rural areas could experience higher premiums because of this risk.

9. Age of your roof

Older roofs can be more susceptible to weather damage, which makes you more likely to file a claim. Insurers prefer newer, updated roofs. Generally, a roof should be updated every 10-20 years.
Fortunately, there are ways you can lower your premium. Bundling policies – particularly buying home and auto insurance from the same carrier, installing a monitored burglar or fire alarm, and keeping a claims free record are just a few ways to earn discounts from providers. A licensed insurance agent can answer questions about your coverage and help you find other ways you can save.

Contact me today for a free home evaluation or a Home Buyer's Toolkit.

Staging can play a valuable role in helping sell a home!

Buyers today want move-in condition homes with updated decor that can easily fit their lifestyle and furnishings.

Staging can play a valuable role and can also help eliminate "buyer confusion" when room are not being used in a manner that most buyers would.

The open living room offers great windows, high ceilings, and hardwood floors but as an office suite was not going to engage buyers. To show buyers the space potential, stagers removed all of the office furniture and replaced it with appropriate furnishings including a couch, love seat, and tables. They also painted the walls a more modern, neutral color, and accessorized.

This home's dining room was open to the living room and featured beautiful natural light but was another room being used as office space. We continued the updated paint color throughout this space and added an elegant dining room table, chairs and accessories.

This spacious master bedroom looked small and uninviting. A warm neutral wall color showcases the rooms size and high ceilings. We replaced the existing bedding with more sophisticated decor in gold and taupe tones to create a modern retreat.

How Rising Interest Rates Affect Buyers & Sellers

The last 60 days have been a roller coaster ride for fixed mortgage rates. We have seen anywhere from a 60 – 80 basis point jump (0.6 – 0.8%) on the most popular 5 year fixed mortgage products offered today. Here is how you are affected as a home buyer or seller in today’s changing market.

Understanding Mortgage Rates

First let’s understand that these changes haven’t affected all mortgage interest rates. All variable rate and home equity line of credit (HELOC) mortgages are tied to the Bank of Canada’s floating prime rate which hasn’t changed in the last 3 years. The reason for the ongoing changes to fixed mortgages is because the interest rate is set by the movement in the Canadian Bond market. Over the last two months there has been increasing pressure which has resulted in gradual increases to the best mortgage rates offered.

How This Affects Buyers

As a Canadian looking to purchase a home in the near future you need to be kept aware of how quickly the market changes.
You can complete a mortgage pre-approval which effectively locks in your interest rate for the next 90 – 120 days while you are working on finding the perfect abode. This process effectively provides you with a maximum purchase price and a conditional rate hold giving you peace of mind for the duration of your home hunt.
This being said, the lender still needs to give final approval on the actual property you choose to purchase. A pre-approval is not a guarantee that you will get financing on a specific home. It’s a guarantee that if the lender likes the location and believes the appraised value of the home is present, then you’ll get the final approval.

How This Affects Sellers

If you are in the market to sell your property there are a number of ways these changes can affect you.
First of all, if you possess a rock bottom interest rate on your existing mortgage and your contract states that it is assumable – this will be a great selling feature. As interest rates rise your low interest rate will cause additional interest from potential buyers who can take over your low payment mortgage. It can also help as today’s new mortgage rules are making it harder for first time home buyers to qualify for higher interest rates, making the chances of closing a successful sale increase. Conversely, if your mortgage is not assumable then higher interest rates can cause the amount of buyers for homes in your price range to decrease.
The bottom line on the mortgage interest rate changes are that they do affect you regardless of whether you are buying or selling in the near future. The best defense is to keep your ear to the ground by working with your mortgage professional, complete a mortgage pre-approval or contract review, and then work on actively implementing your plan over the coming months to ensure you are not caught off guard by the frequent changes in the Canadian mortgage marketplace.

4 Affordable Ways to Make Over Your Living Room to Help Sell Your Home

It is easy to lose track of time looking at the thousands of beautiful rooms on Pinterest in the home decor section. A majority of the photos look like they came straight out of a decor magazine which, quite frankly, makes me feel like the worst decorator…of ever. Seriously, who has the time and money to make their living room look like this?! Does anyone even really live in the home above? It is perfect!

While you may not have the time, or money, to decorate like a pro, here are 4 ways you can give your living room a make over:


Rethink your Floor Plan




Resist the urge to push your couches right up to the wall. This may be difficult in smaller living rooms but if you can you pull  your couch even a few inches away from your wall it will actually make your room appear larger. Doing this will also create a room that fosters more intimate conversations areas.


Choose the Right Rug



The elements in a room should be connected, both visibly and physically, says Coral Nafie, About.com’s interior decorating guide. She adds, a rug on the floor adds color and a connection between pieces of furniture. The rug should be tucked under the front legs of chairs, sofas, and tables.



Declutter




You’ve heard the famous line “Less is more” right? Well the same thing can be said for home decor. Take inventory of everything in your room that isn’t furniture. This includes pictures, knick knacks, collectibles and anything else in the room you have collected over the years. Give a value to these things, sentimental or monetary, and get rid of the items that you can bare to part with. Clutter makes a room look disorganized and small. By reducing the amount of items in your room your special items will stand out even more than before. You can always store items and rotate them every season, this way your room is always getting an update. The best part about this tip? It’s free!


Perk Up Your Neutral Palette by Embracing Color




Neutral colors are of course safe and when thinking about selling your home they are best to use. However, pops of color are a must when reinventing a living space. If you are not ready to commit to adding a bold color of paint to your walls there are several other options you can consider. A neutral background is the perfect canvas for colorful lamps, throw pillows, art and other colorful accessories. Allow Mother Nature to help! You can seem in the image above adding plants and flowers are an easy way of adding color and personality to a room. Of course a beautiful fragrance is an added bonus.

Contact me today for a free market evaluation of your home or for staging advice.

Mortgage considerations when selling your home and buying a new one....

Selling your current home and moving into a new one can be stressful enough, let alone worrying about your current mortgage and whether you’re able to carry it over to your new home. Porting enables you to move to another property without having to lose your existing interest rate, mortgage balance and term. And, better yet, the ability to port also saves you money by avoiding early discharge penalties. It’s important to note, however, that not all mortgages are portable. When it comes to fixed-rate mortgage products, you usually have a portability option. Lenders often use a “blended” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current interest rate. With variable-rate mortgages, on the other hand, porting is usually not available. As such, upon breaking your existing mortgage, a three-month interest penalty will be charged. This charge may or may not be reimbursed with your new mortgage. Porting conditions While porting typically ensures no penalty will

be charged when you sell your existing property and buy a new one, some conditions that may apply include: Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day. Other lenders offer a week to do this, some a month, and others up to three months. Some lenders don’t allow a changed term or force you into a longer term as part of agreeing to port your mortgage. Some lenders will, in fact, reimburse your entire penalty whether you’re a fixed or variable borrower if you simply get a new mortgage with the same lender – replacing the one being discharged. Additionally, some lenders will even allow you to move into a brand new term of your choice and start fresh. There are instances where it’s better to pay a penalty at the time of selling and get into a new term at a brand new rate that could save back your penalty over the course of the new term.

Don't Confuse Potential Buyers of Your Home - Before and After Staging Pictures

The open living room offers great windows, high ceilings, and hardwood floors but as an office suite was not going to engage buyers. To show buyers the space potential, stagers removed all of the office furniture and replaced it with appropriate furnishings including a couch, love seat, and tables. They also painted the walls a more modern, neutral color, and accessorized.

This home's dining room was open to the living room and featured beautiful natural light but was another room being used as office space. Updated paint color throughout this space and added an elegant dining room table, chairs and accessories.

This spacious master bedroom looked small and uninviting. A warm neutral wall color showcases the rooms size and high ceilings. Replaced the existing bedding with more sophisticated decor in gold and taupe tones to create a modern retreat.