Tuesday, 12 December 2017

Canadian Buyers Demand Maintenance of Value

Written by Posted On Tuesday, 11 March 2003 00:00

With all this talk about Canada's aging population, Canadians often overlook the fact that our homes are aging, too.

Nothing lasts forever. Roofs, wiring, windows, plumbing, even landscaping all age and need replacement at some point. Your commitment to cost-effectively maintaining the physical structure that you call home will determine your success at preserving and improving value or home equity.

Your home is ultimately worth exactly what someone will pay for it.

When home buyers were less sophisticated and all real estate professionals worked for sellers, maintenance issues often went undiscovered until buyers moved in. Today, home buyers expect to base their offer to purchase on the full cost of a property. They want to know how much more they must invest as owners to bring a property up to their standards.

Home maintenance is on the negotiation table for a number of reasons. Since 1995, more and more buyers have their own real estate agent to research the suitability of potential purchases. An increasing number of real estate boards require sellers to provide written disclosure on the condition of their property before it is listed on the Multiple Listing Service or MLS. Resale buyers consider it standard practice to have a home inspection, a professional analysis of the condition of the home which reveals the cost of necessary and imminent repairs.

The gap between old homes and new homes is continually widened by new maintenance and modernization standards and products. Buyers wooed by vaulted ceilings, ground-floor family rooms, ensuite bathrooms, built-in appliances, attached garages and a dazzling array of new home upgrades are not impressed by tired, care-worn houses and condominiums that lack the features today's home buyers see as essential. Buyers do not expect to reward owners who have not maintained or modernized their properties.

Maintenance and mortgages also go hand in hand. To protect their investment, lenders insist that property be kept in good repair. Mortgage contracts give lenders the right to regular inspection and to undertake repairs at the owner's expense although most lenders do not intervene unless the property is badly neglected. A poorly-maintained property may be hard to finance which in turn lowers its value to buyers.

Building codes, first introduced in the forties, established continually-improved standards for construction and design to ensure safe, healthy houses and condominiums. However, buildings constructed more than fifty years ago may not have had the benefit of professional inspection to ensure high-quality construction and materials. Older homes may harbour a host of problems: poorly-laid foundations, inadequate wiring, lack of insulation and inferior building techniques.

Don't be lulled into a false sense of security if your home is still a teenager. New home warranty programs exist because mistakes, sub-standard workmanship and negligence continue to be a problem. Homes built during the frenzy of housing booms are particularly vulnerable.

It won't be long before a permanent, regularly updated electronic maintenance record will be standard documentation for determinations of value and transfer of ownership. In the meantime, the value of your greatest financial asset lies in your hands.

Rate this item
(0 votes)
PJ Wade

Futurist and Achievement Strategist PJ WADE is “The Catalyst”—intent on Challenging The Best to Become Even Better. A dynamic speaker and author of 8 books and more than 1800 published articles, PJ concentrates on the knowledge, insight, communication prowess, and special decision-making skills essential for professionals and their clients who are determined to thrive in the 21st-Century vortex of change.

PJ Wade's latest business book, What's Your Point? Cut The Crap, Hit The Mark & Stick! (CatapultPublishing.com) further proves PJ's forward-thinking expertise and her on-point ability to explain technical, even non-verbal, communication details in practical, understandable terms. Print publication: Fall 2017

PJ: “What's Your Point? — the pivotal 21st-Century business question—must be answered before you open your mouth, hit a key, or tap anything. Too often 'Your Point' is not clear to you, and communication remains an expensive illusion.”

As The Catalyst, PJ concentrates on enhancing communication ROI for experienced advisors, executives, entrepreneurs, business owners, and other savvy professionals, who may not have received as much formal training in communication as they have in their own field.

PJ’s on-point professional development programs and featured presentations start where other business content leaves off. What's Your Point?  programs, presentations, and content present the rich combination of practical suggestions, game-changing concepts, and on-point perspectives essential to those rising to the challenge of modern effective business communication—online & off.

Onward & Upward — The directions that really matter! Reach PJ at pjwade@TheCatalyst.com and visit her Blog: http://www.thecatalyst.com/blog/.

www.thecatalyst.com

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.