• Mold can be harmful or helpful — depending on where it grows.
• Mold needs moisture to grow.
• Mold does not grow on dry materials.
• Mold growing inside a home can affect the occupants.
• Occupants can learn to recognize mold.

Molds are microscopic fungi, a group of organisms which also includes mushrooms and yeasts. Fungi are highly adapted to grow and reproduce rapidly, producing spores and mycelia in the process.

You encounter mold every day. Foods spoil because of mold. Leaves decay and pieces of wood lying on the ground rot due to mold. That fuzzy black growth on wet window sills is mold. Paper or fabrics stored in a damp place get a musty smell that is due to the action of molds.

Molds can be useful to people. The drug penicillin is obtained from a specific type of mold. Some foods and beverages are made by the actions of molds. The good kinds of molds are selected and grown in a controlled fashion.

Molds are undesirable when they grow where we don’t want them, such as in homes. Over 270 species of mold have been identified as living in Canadian homes. Molds that grow inside may be different from the ones found outdoors.

What makes molds grow?

Molds will grow if we provide them with moisture and nutrients. If we keep things dry, molds do not grow.

High moisture levels can be the result of water coming in from the outside, through the floor, walls or roof; or from plumbing leaks; or moisture produced by the people living in the home, through daily activities like bathing, washing clothes or cooking. Water enters the building when there is a weakness or failure in the structure. Moisture accumulates within the home when there is not enough ventilation to expel that moisture.

Different kinds of molds grow on different materials. Certain kinds of molds like an extremely wet environment. Other kinds of molds may be growing even if no water can be seen. Dampness inside the material can be enough to allow them to grow.

Why are molds a concern?

Damage to materials is one concern. Materials get stained or discoloured, and over time they are ruined. Moldy paper and cardboard disintegrate over time. Fabrics are damaged. Continued mold growth can be indicative of moisture conditions favourable for growth of fungi that cause wood rot and structural damage.

When molds are growing inside the home, there may be health concerns. Molds release chemicals and spores.

Health experts indicate that, depending on the type of mold present in a home, the amount and degree of exposure, and the health condition of the occupant, the health effects of mold can range from being insignificant to causing allergic reactions and illness.

Pregnant women, infants, the elderly and those with health problems, such as respiratory disease or a weakened immune system, are more at risk when exposed to mold. Consult your family physician if you believe there is someone who may be at risk.

Is there a mold problem?

Molds are always found in the air outside and in all buildings. They come into the home in many ways — through open windows or doors, on clothing, pets, food or furniture. The problem starts when mold grows inside the home.

Some mold growing, for example on the window sill but not elsewhere, is not a cause of concern. You can clean the mold yourself. The presence of mold is a sign that there is too much moisture in your home — a situation which must be corrected.

Inspect the home to find the extent of the mold.

How can you tell if it is mold?

Discoloration

Discoloration is a sign of mold. However, all discoloration is not due to mold. Carpeting near baseboards, for example, can be stained by outdoor pollution entering the home. Stains or soot may also be caused by the smoke from burning candles or cigarettes.

Mold may be any colour: black, white, red, orange, yellow, blue or violet. Dab a drop of household bleach onto a suspected spot. If the stain loses its colour or disappears, it may be mold. If there is no change, it probably isn’t mold.

Smell/Odour

Sometimes molds are hidden and cannot be seen. A musty or earthy smell often indicates the presence of molds. But a smell may not be present for all molds. Even when you don’t notice a smell, wet spots, dampness or evidence of a water leak are indications of moisture problems and mold may follow.

How much mold is growing?

One way to know is to estimate the area of the mold.

Mold is considered to cover a “small area” if the patch is no larger than a square meter. There should be no more than three patches, each patch smaller than a square meter. Clean up small areas yourself using a detergent solution, household rubber gloves and a dust mask for protection. Refer to How to clean-up small problems for the procedure.

Small moldy areas in homes may become larger over time, if ignored, so it’s important to clean up and remove even small patches of mold.

The mold area is considered “moderate” if there are more than three patches, each patch smaller than a square meter, or there is one or more isolated patches larger than a square meter but smaller than 3 square metres (size of a 4 x 8 foot sheet of plywood). Assessment by a professional is recommended. You can clean up moderate amounts of mold but you must follow the proper procedures and use the proper protective equipment. Refer to Moderate area clean-up for the procedure.

A mold area is considered “extensive” if a single patch of mold is larger in area than a sheet of plywood. Being exposed to this much mold is not a good idea. Do not attempt to clean up large areas of mold yourself. You need professional help to determine why the mold is there in the first place and how to clean it up.

When should you seek professional help?

You may need professional help when:

• There is a lot of mold
• The home is very damp and moist
• Mold comes back after repeated cleaning
• A family member suffers from asthma or respiratory problems or other health problems that appear to be aggravated inside the home

How do you get professional help?

Contact your CB Rhodes sales representative for a list of individuals who have completed the CMHC Residential Indoor Air Quality Investigator program. A trained IAQ investigator, who operates a private business and sells his/her services, examines the indoor air quality of your home and documents your concerns. He/she identifies the problems, finds their sources and suggests solutions in a written report. Recommendations are provided to you in an action plan that consists of various options to improve the indoor air quality in your home.

How to clean up mold problems

• “Small areas” of mold can be cleaned with a detergent solution.
• Wear a mask, safety goggles and rubber gloves.
• Seek professional help if there is a lot of mold or if mold comes back after cleaning.

Bleach is NOT recommended

The presence of organic (humic) materials, the pH (acidity/alkalinity) of the water, the surface material and contact time affect the effectiveness of bleach for disinfection. Since these factors are not generally controlled, bleach cannot be relied upon for disinfection. The most compelling reason for advising against bleach is that fumes are harmful but in addition, overuse of bleach will result in increased releases of chlorinated effluents which can be harmful to the environment.

“Small area” clean-up

You can clean up “small areas” of mold (fewer than three patches, each smaller than a square meter) yourself. The minimum protective wear needed are:

• safety glasses or goggles;
• a disposable dust mask (3M 8210 or equivalent); and
• household rubber gloves.

Infants and other family members with asthma, allergies or other health problems should not be in the work area or adjacent room during the cleaning.

Washable surfaces:

Scrub with an unscented detergent solution; then sponge with a clean, wet rag and dry quickly.

Using an unscented detergent will make it easier for you to detect residual moldy odours.

Moldy drywall:

Clean the surface with a damp rag using baking soda or a bit of detergent. Do not allow the drywall to get too wet.

Mold that comes back after cleaning is usually an indication that a source of moisture has not been removed. Seek professional help from a trained IAQ investigator.

“Moderate area” clean-up

• Clean “moderate areas” of mold, but wear proper protective equipment and follow precautions.
• Seek professional help if there is a lot of mold or if mold comes back after cleaning.

If you follow the proper procedures and use the proper protective equipment, you can clean up “moderate areas” of mold. “Moderate” means more than 3 patches of mold, each smaller than one square meter, or one or more isolated patches larger than one square meter but smaller than 3 square meters (size of a 4 x 8 foot sheet of plywood).

Safety precautions

• Wear a disposable dust mask (for example, 3M 8210 or equivalent), glasses or safety goggles and household rubber gloves.
• Isolate the area to be cleaned with plastic sheeting, taped to walls and ceiling.
• Infants and other family members suffering from asthma, allergies or other health problems should not be in the work area or adjacent room during the cleaning.

A small clean up should take minutes (not hours) to finish. When the clean up takes hours to a day to finish, it is suggested that you upgrade to a better filter, such as a half-face respirator with charcoal cartridges. An exhaust fan installed in a window in the room being cleaned would prevent contamination of other areas of the house as well as provide ventilation.

General cleaning

Vacuum surfaces with a vacuum cleaner which has a High Efficiency Particulate Air (HEPA) filter or is externally exhausted. Scrub or brush the moldy area with a mild unscented detergent solution. Rinse by sponging with a clean, wet rag. Repeat. Dry quickly. HEPA vacuum the surfaces that were cleaned as well as surrounding areas.

Cleaning wood surfaces

Vacuum loose mold from wood surfaces using a HEPA or externally exhausted vacuum. Try cleaning the surface of the wood with detergent and water. Rinse with a clean, damp rag and dry quickly. If the staining does not come off, sand and vacuum the surface of the wood with a vacuum/sander combination. It is important to vacuum at the same time to prevent mold spores from being dispersed into the air. Note that wood affected by rot may need to be replaced.

Cleaning concrete surfaces

Vacuum the concrete surfaces to be cleaned with a HEPA or externally exhausted vacuum cleaner. Clean up surfaces with detergent and water. If the surfaces are still visibly moldy, use TSP (trisodium phosphate). Dissolve one cup of TSP in two gallons of warm water. Stir for two minutes. Note: TSP must not be allowed to come in contact with skin or eyes. Saturate the moldy concrete surface with the TSP solution using a sponge or rag. Keep the surface wetted for at least 15 minutes. Rinse the concrete surface twice with clean water. Dry thoroughly, as quickly as possible.

Moldy drywall

The paper facings of gypsum wallboard (drywall) grow mold when they get wet or repeatedly wet and don’t dry quickly. Cleaning with water containing detergent not only add moisture to the paper but also can eventually damage the facing. If the mold is located only on top of the painted surface, remove it by general cleaning (see above). If the mold is underneath the paint, the moldy patch and other moldy material behind it are best cut out and the surrounding areas also cleaned. This should be done by a mold clean-up contractor. New materials may become moldy if the moisture entry has not been stopped. If this is the case, replacement of the materials should be deferred until the source of the moisture is corrected. The affected areas should be temporarily covered with plastic sheeting and sealed at the edges.

Any areas that show new patches of mold should be cleaned promptly.

Dealing with an ongoing problem

Repair to the building envelope is required if moisture is entering the home from the outside. At the same time, steps should be taken inside the home to reduce the occupants’ exposure to mold.

Step 1 — Discard moldy or damaged materials

Wear a dust mask and gloves. Furnishings, such as mattresses, carpets, or sofas that got wet or have been stored in damp conditions should be discarded. Discard items that are no longer needed. Use this opportunity to reduce the amount of furnishings — this means fewer materials to absorb moisture and grow mold. Clothes and other items that have been cleaned should be stored in sealed plastic bags to prevent re-contamination.

Step 2 — Vacuum

Proper vacuuming reduces the amount of mold spores. All surfaces in the home (floors, walls, ceilings, shelves) and non-washable furnishings (such as sofas, chairs, etc.) must be vacuumed thoroughly.

Step 3 — Prevent

Keep moisture generated within the home to a minimum by conscientiously following the prevention steps presented in the next section.

Step 4 — Clear wet areas

Pull carpets and furnishings away from walls that get wet. Carpets and underpads that are moldy should be cut out and discarded.

Step 5 — Dry

Take steps to dry up areas that get wet. Monitor the relative humidity of the air. Use a portable dehumidifier, if necessary. Ensure that the condensate drain pan of the dehumidifier is emptied regularly.

Step 6 — Isolate

If the mold is limited to one area, isolate the area if possible. Cover the affected surfaces with plastic sheeting secured at the edges with duct tape. Note that this is only a temporary measure to minimize your exposure.

Step 7 — Clean

Healthy individuals can regularly clean “small” and “moderate” areas of mold, thus preventing these from getting out of hand, by following the safety precautions and cleaning guidelines.

Step 8 — Seek professional help

Consider seeking professional help from trained IAQ investigators to identify appropriate remediation steps inside the home. Removing large amounts of mold will require the services of mold clean-up contractors.

Preventing mold

• Keep the home dry.
• Find and fix water leaks.
• Discard clutter and excess stored materials.
• Clean and maintain the home regularly.
• Encourage lifestyle practices that reduce moisture.

Basic steps to prevent and reduce mold growth

Mold needs moisture to grow. Controlling the moisture and keeping the home dry prevents the growth of mold.

• Check your home for signs of moisture and molds.
• Find out if water is coming in from the outside and if substantial moisture is produced inside the home.
• Fix any water leaks promptly.
• Think of the different ways moisture is produced inside the home (for example, cooking, bathing, plant jungle). Remove the moisture as it is produced by using exhaust fans. In the absence of fans, open windows for a short time, but note that the wind can push the moisture to other parts of the home.
• Measure how much moisture is in the air. To find the relative humidity in your home, you’ll need a hygrometer. You can buy one at a hardware store or electronics store. A hygrometer costs from $10 to $60. Relative humidity in the home should be under 45 per cent in the winter (or lower to avoid condensation on windows). If necessary, use a dehumidifier to lower the relative humidity.
• Reduce the amount of stored materials, especially items that are no longer used. Molds grow on fabrics, paper, wood and practically anything that collects dust and holds moisture.

Mold-proofing your home, room by room

Basement or crawl space

• Reduce the amount of clothes, paper and furnishings stored in the basement. Discard badly damaged materials. Eliminate clutter to improve air circulation. Only washable items should be stored.
• Dehumidify the basement during the warm months.
• Avoid carpets on slab-on-grade or below grade floors.
• Periodically clean the drain in your basement floor. Use half a cup of bleach, let it stand for a few minutes, then flush with plenty of water. Keep the drain trap filled with water.
• Avoid standing water. Keep sump pits covered (you can use plywood wrapped with plastic).
• Regularly clean and replace furnace filters. Use a pleated one-inch filter, not a coarse filter.
• If you have a heat recovery ventilator (HRV), clean the filter inside the HRV often.
• If you notice molds or signs of dampness, such as water on your windows or wet spots elsewhere, do not humidify. Disconnect furnace humidifiers that are no longer used.
• If you have electric baseboards, vacuum the units, or have a professional clean them for you.

Laundry areas

• Check that your clothes dryer exhausts to the outside.
• Remove lint every time you use the dryer.
• Don’t hang-dry laundry indoors.
• Dry your laundry tub and washing machine after you use them.

Bathrooms

• Check the bathroom fan to make sure it exhausts to the outside.
• Turn the bathroom fan on when you shower. Keep it running for a few minutes after you finish your shower.
• Take short showers.
• Keep surfaces that get wet, such as the walls around the bathtub and shower, clean and dry.
• If there is a carpet in your bathroom, remove it.
• Check for water leaks.
• Keep drains in good shape by removing debris from them.

To clean a drain:

• Pour a handful of baking soda into it.
• Add a cup of vinegar.
• Put the plug in the drain.
• Let the vinegar and baking soda work for about 20 minutes.
• Run fresh water into the drain.

If the drain is still clogged, use a small plumbing snake.

Kitchen

• If the fan over your stove exhausts outside, use it when you cook.
• Minimize open boiling.
• Keep your drains in good shape. Follow the steps in the Bathrooms section above.
• There’s a drip pan at the back of the refrigerator. Pull the refrigerator out to clean the drip pan. At the same time, vacuum dust from the coils at the back of the refrigerator.
• Check under the kitchen sink to make sure there are no leaks.
• Take out the garbage daily to prevent odours and spoiling.

Closets and bedrooms

• Get rid of clothes and other stored items that you don’t use. Keeping your closets and bedrooms tidy makes it easier for air to circulate — and harder for mold to grow.

Other parts of the home

• A dehumidifier helps to reduce moisture in the home during the warmer months. Close the windows when the dehumidifier is running.
• When family and friends come into the home, have them take off their shoes.
• Vacuum often. If you are buying a vacuum cleaner, try to get one with a HEPA filter. (See below).
• Clean hard floors with a damp mop.
• Do not bring in furniture, clothing, books etc. that have been stored in a moldy place into your home.
• Cut down the number of potted plants in the house—soil is a good place for mold.

Exterior

• Regularly check the condition of the roof and exterior finish for any places where water might enter.
• Make sure that eavestroughs and downspouts are connected and working properly and that they are free of debris.
• Install downspout extensions to lead water away from the building.
• Deal promptly with any problems that you find.

Frequently asked questions about mold

Should I have my house air tested for mold?

This is the question most frequently asked by homeowners who think their home may have a mold problem. Testing is generally not recommended for homeowners. Testing of moldy materials or an air sample identifies the types of molds that may be present but does not identify the cause/source of moisture. The type of mold does not change the procedures for cleaning up areas of mold less than 3 square meters. You have to clean up the mold and correct the problem irrespective of the type of mold. The cost of testing may be better spent hiring a professional investigator or fixing the problem.

Testing of a moldy material involves sending a swab, an imprint on a Scotch tape or a piece of the material to a competent laboratory. Air sampling requires specialized equipment. An air sample typically captures mold spores in a period of minutes. Since replicate samples must be taken due to variations in the airborne molds over time (even hours) and compared with outdoor samples, air testing is both expensive and time-consuming. Interpretation of test results may not be very useful, since there are no advocated “safe levels” of indoor molds and the results will not tell the health risks from the molds.

The air feels dry — can I humidify?

Before you add moisture to the air, measure the relative humidity. Air that feels dry may not be really dry. It may be moldy. High relative humidity (over 45 per cent) promotes the growth of molds and dust mites. The moisture in the air may condense on colder exterior walls where molds start to grow.

If your physician has advised you to use a humidifier in your child’s bedroom at night, monitor the relative humidity. Turn the humidifier on and off as necessary. In the morning, take steps to make sure the room gets dry. Clean and empty the humidifier after each use.

What advantages do HEPA vacuums provide?

Ordinary vacuums capture large particles only — small mold spores pass through the vacuum into the air. HEPA vacuums have special filters that capture small particles. A central vacuum cleaner which is exhausted to the outside also removes mold spores. A regular portable vacuum is useful only if its exhaust goes outside the home. Vacuuming removes settled dust that contains an accumulation of mold spores over time. Reducing the settled dust reduces molds.

Vacuuming with any vacuum cleaner (ordinary, central or HEPA) stirs dust and mold during the process. Wear a dust mask so you will not be breathing more mold.

Is vacuuming with a HEPA or externally exhausted vacuum cleaner recommended for serious mold problems only?

Vacuum regularly with a HEPA or externally exhausted vacuum cleaner to prevent the ongoing accumulation of dust and molds. The need for HEPA or external exhaust vacuuming increases with the severity of the mold problem.

If a furnishing has been wet at some time in the past or has been exposed to dampness over a prolonged period of time, vacuuming with HEPA or externally exhausted vacuum is unlikely to remove the mold growing beneath the surface. It is better to discard the item.

Where do you find a HEPA vacuum cleaner?

Vacuum cleaner dealers carry HEPA vacuums. Consider purchasing one as an upgrade to what you may be using. A HEPA vacuum is a good investment in the long term whether you have mold or not. A generic canister HEPA vacuum cleaner costs approximately $300. Brand name products of the same type may cost more. You may inquire if the dealer has a HEPA vacuum cleaner to rent. Contractors who clean up or renovate houses for mold should also have this equipment.

Does painting over a moldy surface take care of the mold?

Painting over mold only masks the problem. Paint does not kill the mold nor stop it from growing. Surfaces that are washable should be cleaned with a detergent solution, following the procedure suggested above, then allowed to dry. If you are going to paint, remove mold first.

Does cleaning stop the mold growth?

Mold will reappear until its source of moisture is removed. High moisture levels that are not corrected can make the molds grow back quickly. Cleaning is only a temporary but essential measure.

You can help by making a conscious effort to keep the home dry. Obviously, water must be prevented from entering the home. But you can help by controlling moisture that you produce.

How does one clean clothes that are moldy?

Non-washable clothing can be dry cleaned.

Wash clothes with a detergent solution to which a cup of bleach is added. Make sure the detergent you use does not contain ammonia. Repeat as necessary until the moldy odour is gone.

Clothes and other items that have been cleaned should be stored in sealed plastic bags to prevent re-contamination.

*Article provided by CMHC*

When it comes to staging a home for sale, sellers should create a warm, inviting yet neutral atmosphere that will appeal to as many potential buyers as possible. The good news is that sellers don’t need to do a complete design overhaul to get a great result.

Coldwell Banker Rhodes offers seven simple staging tips to help boost a home’s appeal and give owners a competitive edge to help sell their home.

• Stage rooms with one purpose.  Rooms that have many uses can confuse or even deter homebuyers, so staging rooms with one purpose is vital.  Determine who your most likely target market will be, whether it’s young professionals with no kids, families, or even empty nesters.  Then present your areas to fit their needs.  If you’ve been using a room as a guest room/kids playroom/home office, pick the one use that best suits your buyers.
• Tackle the easy “do-it-yourself” projects. In a Coldwell Banker’s consumer survey of first time buyers, the vast majority said move-in conditions are very important in their search.  Spruce up your home by replacing outdated kitchen and bathroom fixtures.  Add a fresh coat of paint.  Repaint or refinish kitchen cabinets and update with new hardware.
• Focus on the living areas.  Potential buyers should envision themselves entertaining friends and family in the living areas of the home.  Make sure those areas feel as spacious as possible by removing any unnecessary furniture to allow for easy traffic flow.
• Make sure the master bedroom appeals to both sexes.  Remember that the master bedroom is a room that a couple will be sharing, so the décor should appeal to both sexes.  It should feel like a calm and peaceful refuge, not a frilly boudoir.  Remove any feature that seems too gender-specific and paint the walls a neutral colour.
• Clear away family photos and mementos.  Buyers want to picture their family living in a home, not the previous owners. Put away family portraits, personal collections and knickknacks. Removing these items will also eliminate clutter and ensure that people are focusing on the home, not the photos from the last family vacation.
• Furnish the home, but don’t overdo it.  While an empty house may look spacious, it’s often hard for buyers to visualize their belongings in a home if they’re just looking at bare walls and floors. Leave the basic components that allow the viewer to define each room.
• Don’t forget the outside spaces.  First impressions can play a key role in a consumer’s decision-making process, so don’t neglect your home’s curb appeal.  Make sure the home’s exterior is inviting by trimming the bushes, mowing the lawn and painting faded window trim.  Buyers will appreciate the seller’s efforts with the yard work, and will tend to assume that the same attention to detail has been devoted throughout the property. 

Buying a home is probably the single largest investment you’ll ever make, and you want to ensure you get the best value for your hard-earned dollar. That’s why more and more buyers today are turning to professional Home Inspections.  Prospective home buyers, especially first timers with less experience than a repeat buyer, may not always be able to anticipate potential problems down the line.  Here’s where the Home Inspector can help.

A professional Home Inspector takes a close look beneath what’s on the surface, and then prepares a detailed written report for the prospective buyer on what repair and maintenance work is required now, or is likely to arise in the near future, as well as help you estimate how much this work might cost.  The Inspector should look at such things as the condition of the foundation, electrical service, roof, insulation, and other structural factors. Your Coldwell Banker Rhodes real estate professional can help you connect with an experienced Home Inspection service in your community.

Although costs will vary, you can probably expect to spend a few hundred dollars for an inspection of a single family home.  And who pays for it?  Well, since the benefit of a home inspection is almost entirely that of the buyer, it’s often the buyer who pays the full cost.  However, there’s no set rule, and as with most things in real estate, the cost and who pays for it is negotiable.  All things considered, it’s a small price to pay for the peace of mind it provides, and the negotiating power it can give you as an informed buyer — especially if the inspection indicates that there are major repairs required.  Under such circumstances, you may still decide to proceed with your offer, but take the cost of the upcoming repairs into consideration when you decide on your offer price. 

When it comes to making your offer to purchase, your Coldwell Banker Rhodes professional can advise you how to allow for a satisfactory home inspection as a condition of your offer.  Provided you can obtain the homeowner’s permission, a home inspection can be arranged either before your offer is submitted, or after your conditional offer is accepted by the seller.  If the conditional offer is accepted, the property owner is temporarily held from accepting any other offers during a specified time period, so that you can get the inspection done and review the report before you’re locked in.  More importantly, you have a legal escape route if the report turns up some major negative surprises, such as a bad roof or a crumbling foundation.

Your Coldwell Banker Rhodes sales representative can counsel you further on the best approach to suit your market and your individual situation.

Many financial planners will tell you that one of the best investment strategies you can adopt is to pay off your mortgage in the shortest time frame possible.  Here are a few tips to put your mortgage repayment schedule on the fast track, and with a minimum of hassle and stress.

• Select the most frequent payment option available.  By choosing to make your mortgage payment on a bi-weekly, or better still, a weekly basis versus monthly payments, the result is making extra payments every year.  Over the life of your mortgage loan, this approach can save you thousands of dollars in interest, and pay off your mortgage years earlier.  Best of all, you’ll hardly notice the difference, since you’ll simply be making regular payments.
• Consider a closed mortgage.  Getting the lowest rate mortgage available just seems like common sense, yet a great many homeowners choose open mortgages versus the lower rate closed versions.  Unless you’re expecting a windfall and are planning to pay off your mortgage before the end of it’s term, closed mortgages may be your best choice.  Although you can’t add extra money whenever you wish, most closed mortgages allow for an annual lump sum payment, perhaps ten percent of the loan.  Talk to your lender to find out what provisions their closed mortgages offer for repayment.  In most cases, you’ll find that the lower rate closed mortgage offers you the best alternative.
• Shop around for mortgages.  Gone are the days of “one-stop financial shopping” when people routinely arranged for mortgages at the same place where they did their banking.  Your mortgage represents one of the biggest financial commitments of your life, so it pays to do some research and a little comparison shopping.  There may also be some financing options available to you that you haven’t even considered.  Ask your Coldwell Banker Rhodes real estate professional to tell you more.
• Lock in rates while they’re at their most affordable.  A good way to protect yourself against a potential increase in interest rates is to get pre-qualified for a mortgage, and lock in your interest rate now with your lender.  A difference of even a quarter percent in interest can add up to thousands of dollars over the life of a mortgage.  Rates are very favorable right now, so why not protect yourself and lock in the current rates while you look for a home, and avoid the risk of paying a higher mortgage payment if rates go up before you close.

As a prospective home buyer, you’ve probably got a lot of questions about the buying process, and you may be wondering whether you need an up-to-date property survey.  For buyers, the answer is generally, yes.  However, rather than simply relying on the short answer, you need a clear understanding of when and why you should have one done.

Property surveys are usually done for the benefit of the buyer.  A property survey usually resembles a map, and includes dimensions and written details of the property and every permanent structure on it. The original survey is carried out with the construction of a house.  Over time, improvements may be made to the property, such as fences, a deck, a pool, garden shed, and so on.  Additions to the house itself, such as a porch, or even an extension may also have been built after the original construction.  

In addition to structures, certain easements – that is, the right to access the property – may have been added to allow power, water or telephone companies access for service purposes.  If such changes have occurred since the last survey was done and do not appear on the most recent document,  then the survey is out of date and thus will have little value in the real estate transaction

If the survey shows certain deficiencies, such as a fence that’s located outside the property line, you as the buyer can then ask the seller to correct the problem before completing the purchase.  Your Coldwell Banker Rhodes real estate professional can prepare an offer to purchase that is conditional upon receiving an up-to-date survey that’s acceptable to you.  Also, be aware that some lending institutions require the buyer to provide a current survey of the property being purchased before they will grant final approval of a mortgage loan.  You can ask your lender about this when you arrange to be pre-qualified for a mortgage.

When a seller has a current survey for their listing, it’s a great plus, since this can help to ensure the correct information is properly disclosed, which in turn helps your transaction to move smoothly to completion.  It should be noted that not every transaction requires that a new survey be completed at the time of sale.  It depends on when the last survey was completed and whether any improvements or changes have taken place since then.  A survey that was completed a few years ago may be completely valid if there have been no further changes.

If a survey is needed, and no up-to-date version is available, you may be wondering who pays the cost to have a new survey done.  The time to raise this question is during the negotiations with the seller.  The seller is under no obligation to provide any such documentation, or to participate in the cost of a new one, unless it’s spelled out in the offer. Ask your Coldwell Banker Rhodes salesperson for their expert advice on this and any other real estate matter.

Even with today’s very affordable mortgage rates, the real estate market can still present a challenge to many people wanting to step onto the property ladder.  First-time buyers in particular are finding they have to make adjustments as they plan for their dream of home ownership.  Some young people are staying at home longer in order to save for a down payment.  Other would-be homebuyers are scaling down their expectations, while still others are choosing a home with a rental unit to help with mortgage payments.

There are some other creative alternatives available to help First Time Buyers start to build some equity in the real estate market that entail multiple ownership of the same property.  One option that may be of interest to family groups or close friends is the joint purchase of a multiple-unit dwelling, such as a duplex.  Such a property might be jointly purchased by two groups of buyers, with each family occupying one of the property’s units. 

The duplex approach can work well in situations where young people plan to marry, leaving their parents as “empty nesters”.  In this scenario, the family home is sold, with the parents buying one unit of a new duplex outright, and then banking their surplus funds, perhaps for retirement.  The younger generation then assumes the more manageable mortgage payments on the remaining half of the property.  In this way, they can start to build equity immediately, without having to come up with a large down payment, or taking on a big mortgage.

In less formal arrangements, two couples may elect to jointly buy one single-family residence and share all the living space. This can sometimes be a stressful situation, and the best chance for success is usually when there is a family relationship between the two couples, such as two siblings with their spouses, where there is already some history of living together in a shared space.

Whatever method you choose to ease the cost of homeownership, the most important thing to remember is to get the all the details worked out before you buy.  Everyone involved in the purchase should agree on all sub-lease and re-sale provisions “up front”, and in writing.  For example, can one party move out and sublet their living space to someone else? Also, what happens when someone wants to sell? Does one party have the right to buy out the other’s interest?  If so, how will a fair price be determined?  And how long will the other party have to come up with the funds?  Or, is the property simply put on the market with all parties sharing the proceeds? 

In addition to the terms of ownership, the ongoing care of the property should also be considered.  Who will be responsible for the ongoing maintenance of the property?  What services such as landscaping or snow removal will be contracted out to service providers, and how will this cost be shared? How will the cost of major repairs be handled?  

As you can see there are a lot of variables to consider.  Such important issues should not be left to chance.  Don’t expect that they’ll be sorted out easily when the time comes. The best course of action is to get a lawyer involved and draw up an agreement that clearly sets out the rights and obligations of all co-owners.

Remember, when you’re thinking of creative ways to ease the cost of owning a home, talk it over first with the expert.  Tell your real estate salesperson all about your plans, so they can ensure that you are shown homes that conform to the appropriate zoning and municipal by-laws.  Best of all, your Coldwell Banker Rhodes real estate salesperson may be able to suggest options that you’d never considered, and help you make your home ownership dream a reality.

One of the questions most frequently asked by homeowners considering a renovation is  “What’s worth doing?”  Well, the answer isn’t a simple one, because it all depends on what you want to get out of it.  Is your purpose primarily to improve your property value, or increase your enjoyment of your home, or a combination of the two?

If you’re thinking primarily of increasing your home’s resale value, you should be aware that the cost of professional improvements to a home will very often not be recovered in a corresponding increase in your property’s value.  A home’s list price is essentially a reflection of the demand from buyers for a home’s features and location.  Just because you’ve invested a certain amount of money in your home renovation doesn’t necessarily translate into adding that same figure onto your potential resale price.  However, if you’re doing some of the work yourself, there’s a far better chance that you can recoup the costs of your improvement.

Generally, the areas to focus on in terms of increasing your resale value are the kitchen and bathrooms, since these are the critical areas that frequently are deciding factors in buying a home.  However, even in these areas, make sure your improvements are limited to what’s clearly visible in a quick walk-through.  New cabinets, counters, or fixtures will all win points, but upgraded plumbing is an expensive undertaking that will add little to the overall appeal of your home.  Prospective buyers will expect reliable plumbing as a “given”, and will not be willing to pay a premium to get it.   Why not get some expert advice in this area from your Coldwell Banker Rhodes real estate professional?  Even if you’re not planning on selling just yet, your Coldwell Banker Rhodes representative would be happy to talk to you to confirm what features are in demand by buyers in your area, and to counsel you on where you can concentrate your resources to get a good return.

If you’re planning on a renovation primarily to enhance your family’s enjoyment of your current home, you’ve never picked a better time to do it.  The cost of financing a renovation is very affordable, with interest rates at a forty-year low.  Basically, you can focus on what would please your family, but do keep in mind that you will eventually still want to sell that home, and some improvements can actually reduce your chances of future resale.  If it’s a toss-up between a couple of potential renovations, you should lean towards the one that will be the most appealing to the maximum number of buyers in the future.  For example, a home theatre or media room is a current trend that would be enjoyed by just about anyone.  On the other hand, a swimming pool can be costly to heat and time-consuming to maintain, so many buyers would not want to even consider a home with a pool.  Again, why not have a chat with your Coldwell Banker Rhodes real estate professional?  They’ll be happy to give you the benefit of their experience, and help you decide what’s worth renovating in your home.

To Buy or Rent – that is the question!

For a lot of people, the number one reason they choose to rent versus buy their own home is their fear of signing their name to a long-term mortgage agreement.  But let’s face it – very few of us can go through life without paying for our place of residence in one form or another.  In that sense, you’ve already made a commitment to a fixed schedule of payments for housing — whether it’s in the form of a mortgage or a rental lease.  In actual fact, one of the major advantages of a mortgage agreement is that it usually covers a longer time period than a lease — which can work in your favor.  Since no one can guarantee what your rental payments may be two or even five years down the road, your mortgage agreement actually protects you from the increases – compounding annually — you can often encounter when you rent.

Nevertheless, some people are still intimidated by the total debt that a mortgage agreement represents.  Yet if you added up all the rental payments you could expect to pay over an extended period of time, you may find that going the mortgage route is actually the more affordable of the two options.  With today’s relatively low mortgage rates, and creative financing options, the cost of carrying a home may be lower than what you might expect.  Your Coldwell Banker Rhodes real estate professional can show you how owning your own home may be more affordable than you ever imagined. 

While making mortgage payments may actually be more affordable than paying rental costs, let’s not lose sight of the biggest financial benefit of buying a home.

The simple fact of the matter is, when you rent, you’re slowly but surely building someone else’s ownership equity in the property.  On the other hand, when you buy a home, a portion of your mortgage payment is building personal equity for you.  And if sometime in the future, you decide to sell, that equity is something you’ll take with you as you make your next move. 

Lastly, let’s not forget the creative freedom and pride of ownership that comes with owning your own property.  When you buy, you decide the extent of home improvements, and decor changes you want to make.  You decide on color schemes and where you want to build that bookcase.  Maybe best of all, you gain the equity that those improvements add to your home.   Spending money to improve a rental property just puts value in someone else’s pocket. 

If you’re tired of paying off someone else’s home for them, talk to your Coldwell Banker Rhodes real estate professional for a no obligation consultation and find out how to make your dream of home ownership a reality.

Home Energy Saving Ideas

Energy costs can take a big bite out of any homeowner’s budget, so you need to know how to be energy-wise.  Here are a few quick and easy ways to cut your energy bills with a minimum of time and effort. 

One of the biggest energy expenses is your home heating bill, so let’s start there.  You can significantly reduce your energy costs by installing a thermostat with an automatic timer that allows you to set the temperature back by a few degrees at bedtime, and returns the temperature to a more comfortable level before you get up.  After all, why heat the whole house, when an extra quilt will keep you toasty and warm for a lot less money?  On the flip side, when the temperatures ramp up, pre-set timers can reduce air conditioning costs too.

Similarly, if you have a room that isn’t used every day, such as a guest room or workshop, consider shutting the air register, and closing the door until you plan to use the space. Your furnace or air conditioning system won’t have to work so hard and you’ll pocket the savings while the rest of your home environment stays in the comfort zone.

You can also reduce the effect of ambient solar heating in summer and heat loss in winter with lined draperies or installing window blinds.  Adding weather-stripping to seal drafts around doors can also result in big energy savings.

Old appliances may also be draining more power than you might think.  Did you know that a refrigerator is one the biggest energy users in the house?  So, if you have an old appliance that needs repair, don’t just look at the cost of fixing it, also think about how much energy it uses. Today’s newer appliances are far more energy efficient than their predecessors, so buying used appliances or repairing an old unit may not be the bargain that you think it is! 

Insulation is an energy saver that works hard for you all year long.  A one-time investment keeps your home cooler in summer and warmer in winter and the cost of installation can be recaptured in energy savings.  Many local utilities and government bodies offer special incentives or rebates to help offset the cost of energy-saving improvements, so be sure to investigate what options are available in your market.  Your Coldwell Banker Rhodes real estate professional may also be a helpful source of information about local programs.

To paraphrase an old real estate saying – the three most important factors for a stress-free move are: planning, planning, and more planning.  Plan your move at least one month in advance.  Set up an expense log, and start lining up your suppliers – movers, storage companies, delivery of new appliances or furniture.  Don’t forget painters, carpet installers and other services working on your new house prior to your move-in date. 

Now is the time to minimize the number of items you have to move.  Discard unwanted items, hold a garage sale, and collect boxes.  Notify friends, relatives, the post office, and companies you do business with of your change of address.  Don’t forget about those companies you might contact only once a year, such as life or car insurance companies.

Contact your real estate lawyer to confirm who will be handling the changeover of various utilities and services.  Typically, utilities such as power, gas, water, etc. are handled by your lawyer as part of the final adjustments on the sale’s closing.  Other services, particularly cable television, internet and telephone services, you’ll probably be instructed to handle on your own.  Try to schedule utilities and service connections before you arrive at your new house – and book your appointments as far out in advance as possible, especially if you plan to move at month end, or you might find yourself on a waiting list.

Make a floor plan of the new house and plan where everything will go.  Don’t guess – take measurements of room dimensions and major furniture items and then lay everything out.  You don’t want pay movers an hourly rate to move Grandma’s piano four times because it just doesn’t fit!  When you’re packing,  label boxes clearly by contents and by room, and on moving day, provide movers with a copy of your floor plan so they’ll know exactly where to put the boxes for ‘Johnny’s bedroom’.  Remember to provide plastic sheets to protect carpets.

Prepare a list of the items you wish to move personally such as jewelry and precious breakables.  Pack your pillows, a set of sheets and blankets, along with your nightclothes, a towel and toiletries to take with you in your car. Then at the end of a long and tiring day, you can get ready for bed without having to sort through 50 boxes.  You might also pack a lunch complete with utensils, napkins, condiments, (and perhaps a wine opener?) to enjoy your first meal in your home as a picnic on the living room floor.  And if you like a cup of coffee in the morning, you’ll want to pack the coffee maker and all the fixings to take in your car as well. 

These little things can add up to a pleasant adventure on moving day, rather than an exercise in frustration for you and your family.  Ask your Coldwell Banker Rhodes real estate representative for more advice about hassle-free moves.  They’ve been through this with hundreds of customers, so they’re the experts!