Sometimes in the Real Estate world there are terms used that the average person may not know, so let's look at a few of them.

Amortization: The period of time it takes to reduce a debt to zero when payments are made regularly. Amortization periods are 15, 20 or 25 years.

Chattels: Articles of moveable personal property (ie: dishwasher, fridge dehumidifier)

Closing Costs: Various costs and expenses associated with closing a real estate transaction. Such costs can include paying for title insurance, legal fees, appraisal fees, etc. It is important to remember these costs are over and above the purchase price of the property.

CMHC: Is an acronym for Canadian Mortgage and Housing Corporation. A crown corporation that administers the National Housing Act for the Federal government and it encourages the improvement of housing and living conditions for all Canadians. CMHC also creates and sells mortgage loan insurance products typically requires when a borrower has less than 25% equity or down payment and it must be paid in advance (or it can be added to the mortgage)

Comparative Market: An approach for estimating the value of a property by comparing the sales price of similar properties that have sold.

Conditional Offer: An offer that is subject to specified conditions such as financing. There is usually a time period that the condition must be met.

Conveyance: The process of transferring an interest in land from one person to another by way of a transfer document.

At any point during the course of a Real Estate transaction (wheather you're speaking to your Realtor, your Lawyer, your home inspector, etc.) you should always feel 100% confident that you know what is taking place, what is being discussed and agreed upon. Never be intimidated or afraid to ASK! Always ask questions if you are unclear of terminology or other scenarios.

Having attended and watched hundreds of home inspections, I've had the opportunity to see the good, the bad, and the ugly ones.

Some inspectors really know their stuff, and can catch problems in a house the average person wouldn't. Others don't know what their doing, but somehow seem to get by on a good personality and sense of humour. Some think they aren't doing their job unless they can find a hundred things wrong with the property, and point out some irrelevant stuff.

In my opinion, the best home inspectors have the following skills:

Knowledge of building code, construction, common problems - not just in general, but area specific.

Personality - yep, it's important. Connecting with the new buyers and understanding their position really helps the process go smoothly. Some inspectors are excellent at it, some are plain lousy.

Tact - This is one of the biggest killers of any home inspection business. With a few quick questions, a good inspector quickly learns the buyer's knowledge of construction, as well as their comfort level in the purchase of their home, and treats them accordingly.

For example, if you're dealing with a buyer who knows nothing about homes and you tell them "the roof is failing on this home, I've found water damage in the attic", this will be grave news to them. Is the roof caving in? Structurally unsound? What have they bought? Explaining with some tact as well as keeping in mind who your audience is, will keep problems in perspective, "The roof has signs of a water leak that may be active. Replacing the roof shingles is necessary to correct the problem, costing an average of x dollars on a home this size", would work much better.

However if you were dealing with someone who knows a lot about home or building construction, it matters less how things are explained, and more that problems are not overlooked or not pointed out.

The ultimate bonus about home inspections is not just knowing the condition of what you're buying, but about home maintenance in general. Many first-time buyers know very little or nothing about how to maintain a home.

A good home inspector will show you all the workings of your home, how they work, and what needs to be done, such as: changing furnace & humidifier filters, furnace tune-up intervals, water valve shut-off locations and when to use them, electrical panel locations and identification of circuits in the home, plumbing clean-outs, thermostat use and humidistat functions, exterior grounds maintenance - proper drainage, keeping eaves clean, points of interest, etc, etc.

Home inspectors will answer all the goofy questions you can possibly come up with. Even if there was nothing at all wrong with the home, this bonus alone is worth the money. You'll move into your home with the knowledge of how to maintain it, when you should do it, when you should call someone, and how it's done. That alone brings a lot of peace of mind.

Did I say home inspections are recommended?

Lastly, where can you find a home inspector that possesses all these qualities? That's where we come in. We've seen inspectors that clients have chosen right out of the Yellow Pages, inspectors recommended by Realtors, and inspectors we like and use. We drop the bad ones and scribble in our book the ones that do the job right. That goes for lawyers, mortgage brokers, surveyors, and a ton of other professionals who are part of the process - so ask The Jay Magnussen Real Estate Team for a credible and reliable reference and we'll be happy to oblige.

What if you put your home on the market and then change your mind about selling.  Do you still have to sell your home EVEN if you get an offer that matches everything EXACTLY as you asked (date, asking price, inclusions, exclusions)? The answer is... NO! No you do not, but the general public does not know this. 

Case in point is a good friend and client of ours.  They are interested in a gorgeous condo that has been renovated top to bottom.  They would like to put in an offer conditional on the sale of their home.  The Seller will not accept a conditional offer as they have just done a major price reduction and feel a conditional sale may scare away a firm sale.  I have explained to our client that we can prepare their home for sale (declutter, freshen the home up, rearrange furniture/stage it) and then list it.  While their home is on the market, if someone else puts an offer in on the condo they want to buy, then we just take their home off the market.  Seems simple doesn't it?

The problem is (and everyone seems to think this)... if they get an offer that matches exactly what they were asking, but the home they want sold before they could put in an offer, they MUST accept the offer on their current home.  NO you do NOT have to sell your home, under any circumstance, if you do not want to or if you change your mind.  It is akin to getting married - you have arranged the caterer, everyone is sitting in the seats watching the ceremony but until you say "I do" you are not married.  If I know my client is sincere about selling and the property they want is no longer available, ultimately we want what is best for our client.

Don't let this common misunderstanding stop you from pursuing a property you are interested in. If you have any questions regarding buying or selling real estate, please don't hesitate to ask us, The Jay Magnussen Real Estate Team. We are here to help and welcome all of your questions.

Come check out the annual Okotoks Parade of Garage Sales this Saturday, May 21 with HUNDREDS of garage sales all over town....

While you're out - stop in at our OPEN HOUSE at 64 Crystal Ridge Cres. being held from 9:00 am - 12;00 noon and check out this beautiful 2310 square foot 5 bedroom family home in the lake community of Crystal Ridge. For more information on this home click here! 

Question: How can I compare my monthly rental payments to mortgage payments?

Answer: Of course, the amount of your mortgage payments will depend on the price of the home you buy, the size of your down payment, prevailing mortgage rates, and the term and amortization you choose. But it's actually quite easy to estimate typical payments using the simple mortgage calculator available on our website at www.SoldByJ.com.

Question: How do I know how big a mortgage I will qualify for?

Answer: A mortgage pre-approval is a great way to know how much you can borrow for your home.  This, in turn, helps you set a price that's realistic for your financial situation.  It's important to note that having your mortgage pre-approved doesn't obligate you to buy a home: it's simply a way to know how much your mortgage lender will approve you for.  A mortgage specialist will be able to answer your questions and address your concerns.

Question: I want to become a homeowner as quickly as possible but I haven't saved a large down payment.  Any suggestions?

Answer: You will be glad to know there are different options available, depending on how much of a down payment you can afford.  A low down payment mortgage is required when your down payment is less than 20%.  All low down payment mortgages require mortgage default insurance.  Mortgage default insurance premiums can either be paid up front or added to the amount you borrow. 

With the federal government's Home Buyers' Plan you can use up to $25,000 in RRSP savings ($50,000 for a couple) to help pay for your down payment on your first home.  You then have up to 15 years to repay your RRSP.

Question:  Where can I find up-to-date information on home prices and the Real Estate market in my area?

Answer: The best and easiest place to search for homes for sale is at www.SoldByJ.com where we offer easy-to-use search settings that give you instant and complete access to all Multiple Listing Service (MLS) listings. We offer custom account settings where you can save your previous searches, bookmark your favorite properties, and much more. You can also visit www.mls.ca today and see what properties are currently available. 

The Canadian Real Estate Association (CREA) website helps you look at average home prices in communities across Canada and locate a realtor in your area.  The site also includes useful home-buying tips and a glossary of common real estate terms.  Go to www.crea.ca and check out what is happening in your local real estate market. 

The Canadian Mortgage and Housing Corporation(CMHC) provides a content-rich website with detailed, step-by-step information on buying, selling, and renovating a home, as well as up-to-the-minute news of interest to home buyers and sellers.  Visit www.cmhc.ca and click on "Buying or Renting a Home". 

For more  information on buying a home, contact Jay Magnussen, Kim Daniel or Savannah Magnussen from The Jay Magnussen Team today. We will be happy to speak to you over the phone, through email or set up a no-obligation meeting at your convenience.  

In today's real estate market, sellers are looking for more ways to set their homes apart from the droves of other properties for sale. But how do you get buyers to look twice when your home is comparable to other listings in your neighborhood in the same price range?

Here's a thought: Go green. 

Many homeowners are looking for eco-friendly ways to reduce their family's impact on the environment - and save money! Appealing to this sensibility not only differentiates your home from the rest, but it also saves you money on monthly utility bills.

People sometimes have a misconception of what being green is all about. There are three elements to it:                      1 - Saving money through energy efficiency and conservation of natural resources                    2 - Using sustainable products that are good for our planet                   3 - Understanding how certain products and materials can be unhealthy to people

Here are some basic tips for greening your home at various costs:

Minimal-cost green updates

• Install more insulation, which helps reduce energy and heating costs.
• Properly seal the envelope of your home (windows, doors, etc.) with caulking and weather stripping.
• Install low-flow water fixtures on faucets and showers, and dual-flushing toilets to reduce water consumption.
• Choose products and paints with reduced Volatile Organic Compounds (or VOCs).
• Unplug electronics when not in use, which will lower the utility bills potential buyers will see. These items use power when plugged in, even if they're not turned on.

Moderate-cost green updates

• Choose earth-friendly, wood alternative flooring, furniture, cabinetry and other materials made locally, which lessens the carbon footprint of having items manufactured and transported from abroad.
• Replace heating and cooling systems with high-efficiency HVAC units.
• Purchase ENERGY STAR appliances, which use up to 40 percent less energy than conventional appliances.
• Install a high-efficiency water heater and keep the setting down a few degrees. Many local and state governments offer incentives for purchasing energy-efficient appliances.

The key to successfully buying or selling a green home is to work with The Jay Magnussen Real Estate Team with specialized training.

RE/MAX has become one of just three fundraising sponsors to reach $100 million in total donations to Children's Miracle Network Hospitals.

In a final push to reach the $100 million mark, RE/MAX real estate agents defied a global recession to raise more than $7 million through the Miracle Home program by making personal donations and sponsoring community fundraisers such as golf tournaments, auctions and more.

RE/MAX agents who participate in the Miracle Home program pledge to make a donation to Children's Miracle Network Hospitals upon completion of your home sale or purchase. And the funds stay local, benefiting the Children's Miracle Network Hospital our community.

Ask us, The Jay Magnussen Real Estate Team from RE/MAX First, about the Miracle Home program. To find out if an agent participates in this program, select "Children's Miracle Network" under "Civic Activities" as you set your search criteria.

Together, we can make miracles happen.

Have you thought about your homeowners insurance lately?

If not, maybe you should...

Chances are the subject hasn't crossed your mind since you purchased your policy. And while buy and hold may work for some investments, it may not be the best strategy when it comes to homeowners insurance.

A policy that was adequate when you first purchased it may need to be revised because of changes you've made to your home or increased construction costs. You should consult with your insurance agent or broker to evaluate your policy and make sure it still meets your needs.

"You really should look at it every year," says Debbie Marmitt, a client advisor with Broker Link, a regional insurance broker based in Canada. 

In evaluating your policy, these should be your major considerations:

Do You Have Enough Coverage?
If your property suffers serious damage - or the unthinkable happens and your home is destroyed - will insurance cover the cost of replacement?

You should have enough coverage to rebuild your house if it becomes necessary. If you don't have enough coverage, you may have to absorb a large hit out of your pocket.

Does your policy provide extended or guaranteed replacement cost for the dwelling and replacement cost for your personal property? Some standard policies will reimburse you on an actual cash value basis (current value minus depreciation), whereas with replacement coverage, you'll be reimbursed for the full value per the policy settlement options.

Are You Paying Too Much?
One factor affecting premiums is the deductible. A minimum of $1,000 is recommended. The higher the deductible, the lower the premium. This will also keep you from filing claims for minor damages.

Insurers often offer discounts for features such as smoke detectors, central-station fire, fire extinguishers, and burglar alarms, interior sprinkler systems, even deadbolt locks.

How Much Liability Coverage Should You Have?
We recommend a minimum of $300,000 of personal liability under your homeowners policy. This coverage is the least expensive element that provides great financial benefit. You should also carry a similar liability limit under your auto policy.

Do You Need Flood or Earthquake Coverage?
Standard policies don't cover flood or earthquake perils. If you live in an area prone to such occurrences, you should consult with your agent or broker for coverage options.

Do You Have Valuables?
Standard policies limit coverage for valuable items such as jewelry, furs and silverware. Most policies will include theft but not mysterious disappearance unless you specifically schedule those items. Losses to scheduled items are not subject to a deductible.

How About Off-Road Vehicles?
As long as you're on your own property, you may have liability and/or physical damage coverage under your homeowners policy for vehicles such as ATVs and golf carts. But once you cross the property line, the coverage ceases unless you've purchased a separate policy.

Are There Other Options?
You might consider protection against identity theft or equipment breakdown that may be included - or can be added to - your policy. A yearly review with an independent insurance expert is the best way to stay informed about changes in the marketplace.

You may have heard or read advice that suggests you should wait until next year to buy a home because prices are likely to go even lower than they are now...

That may or may not be true. Who is to say? But even supposing prices do decline further, will you really be ahead by delaying your purchase? There are exceptional values available right now in many markets on homes and investment properties. Combine these great values with the low monthly payments provided by extremely low interest rates and it becomes clear that there's no real advantage to waiting.

Let's explore the issue:

• No one knows what's going to happen with prices - or when. It's possible these may be the lowest prices ever, and the still-low interest rates will keep your monthly payments affordable.
• Let's say prices go down in the next year. How long do you plan to be in the home you buy now? Three years? Five years? Ten years or more? Unless you plan to sell next year, it's irrelevant whether prices go up or down in the next 12 months.
• The most important question to ask yourself is this: Do you think prices for homes in your area will go up or down during the time you plan to own the home? History suggests that in most areas, prices of homes tend to increase over time.
• What if prices go down, but interest rates go up? Even if homes are priced lower, your monthly payment may be higher for the same home, or homes in the same price range.
• If you have a home to sell before buying, everything is relative. Yes, it's possible the price of the home you want to purchase may be less next year - but if it is, your home value will be lower also. This means you will have less equity to use as a down payment, and thus a higher loan amount, when purchasing your next home. This could equate to a higher monthly mortgage payment.

The reality is that, in many markets, it's difficult to beat the combination available to buyers now. You can find exceptional home values (purchase a lot of home for the money), with low monthly payments, if you buy right now. So don't wait - give us a call today! We are here to help.

Have Small Rooms? Create an Illusion of More Space

Do you have a small room or rooms that you'd like to seem larger? One solution is to de-clutter the space. But if you're not prepared to toss out your grandmother's antique furniture, it might be time to try some decorating tips that will help you make the best use of the space.

Here are some solutions to not only maximize the space you have, but also to give it a larger feel.

Go Lighter ... Paint walls light or pale colors.

... But Don't Be Boring. Adding bold accents with varying patterns, prints and colors can deflect thoughts that a space is small. This is an area in which to experiment.

Go Brighter... Think recessed lighting, inexpensive wall sconces and standard or solar-tube-like skylights instead of table or floor lamps.

Go Vertical... Extend cabinets, wall units and bookshelves to the ceiling. This applies to kitchen cabinets as well.

Utilize Wall Space... Place hooks and magnetic strips on walls in the kitchen and elsewhere and use them to get pots, pans and other objects off tables and counters.

Group Your Knick-Knacks... If you can't part with your special collection, you can group them together to create empty spaces on tabletops and shelves. This neutral space gives your eyes a place to rest and creates the illusion of more space.

Size Matters... Measure your space and furniture before any purchase. Couches designed to hug walls are a great way to open up a room, and armless couches and chairs can create the illusion of space. Floor cushions are a good alternative to create seating without adding more furniture and can be easily stored when not in use.

Watch Your Angles... Furniture that sticks out at the wrong angle in a small room can draw the eye and make it appear even smaller.

Find and Utilize Hidden Spaces... Evaluate every room, closet, drawer, nook and cranny to see how your small space can best be utilized. Choose furniture that comes with built-in organizing inserts, drawers and compartments. The space under sinks is seldom used to full advantage and is a good place to add storage.