Toronto Condo and Real Estate Blog

Courtesy of the Ontario Real Estate Association 

When buying an expensive dress or suit, most people are careful to ensure there are no buttons missing or seams loose, and that it’s made of a quality fabric. This is easy enough to do.

Buying a home is no different, except that few of us are equipped with the know-how to ensure that the plumbing, electrical, heating and other major systems are working as well as possible.

Also, after months of house hunting for the ‘perfect home’, it can be difficult to set emotions aside and really see the kind of shape the place is in.

Problems that are not always easy to spot, such as bad plumbing, a shaky foundation, poor insulation and a damaged roof, can turn your dream into an expensive nightmare.

That’s why it pays to make a home inspection a condition of your offer to purchase, whether your lending institution insists on an inspection or not. (Before approving financing, some lenders require you to hire a qualified home inspector to go over the inside and outside of the house you want to buy. This ensures there are no major structural flaws that will threaten the security of their investment.)

It’s a precaution every prospective buyer should take. One of the most important aspects of purchasing a home is knowing the condition of the property in advance. Knowing the structural flaws and maintenance problems that may creep up on you will help you make a more informed decision about the value of the home you plan to buy and any future costs.

Some buyers will pay to have a property inspected even before they put in an offer. This way, if they decide they want the house, they can come in with an unconditional offer. But at an average cost between $200 - $400 for a home inspection, this can get expensive.

During an inspection, the home will be thoroughly evaluated from top to bottom. All major systems such as plumbing, heating, insulation, electrical and structures, such as the roof, walls, ceilings, floors windows and doors, will be inspected and examined.

An inspection generally lasts about three hours. It will not tell you the condition of every single component of the home, but will focus on determining potentially large expenses and safety-related concerns.

Most inspectors don’t mind if the prospective buyer tags along. So, this is also a great opportunity to learn about any major problems first hand and find out ways to keep your future property in good condition.

Following the examination and evaluation, the prospective buyer will be provided with a written report that covers possible defects and areas of concern, as well as estimated costs for any repairs. The report may also note some of the positive features of the home and recommend ways to keep it in good condition.

Ask your Realtor, lawyer, friends and family for the names of reputable home inspectors.

In Ontario, the most reliable indicator of a home inspector’s qualifications is membership in the Ontario Association of Home Inspectors (OAHI), the Canadian Association of Certified Home Inspectors (PACHI) and/or the Canadian Association of Home Inspectors (CAHI).

Interview a number of home inspectors or inspection companies before you begin house hunting so you know who to call when you need them. Find out how long they’ve been in business. Ask for references and proof of membership in professional associations, what the inspection will cover, the cost and if there is any guarantee.

The cost of an inspection usually varies depending on factors such as size, age and location of a home.

Just because a home was recently built doesn’t mean that it is free of flaws. The quality of construction can vary from builder to builder and sometimes mistakes do happen. Even if the home you want to buy is still under warranty, it pays to have an inspector find the problems before you move in.

Inspecting a home is no different than having a mechanic inspect a used vehicle. If it makes sense to check out a car, it makes sense to check out a house worth many times more.

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(Canada News Wire) - Consistent return on investment has prompted an unprecedented upswing in luxury real estate sales in major Canadian centres so far this year, according to a report released recently.

The Upper-End Market Trends Report examined trends and activity in 16 markets across the country between January and July 2007. Luxury home sales were up over the same period one-year ago in all markets, with percentage increases ranging from 13% in Victoria to 521% in Edmonton.

Four markets, including Edmonton, Regina, Saskatoon and Ottawa, reported triple-digit increases while double-digit gains characterized remaining markets. The report also found that the upper-end price points were under stress in most markets surveyed.

“The consumer appetite for luxury property has been insatiable,” says Michael Polzler, Executive Vice President and Regional Director. “Unabated demand throughout the year has created tight market conditions in a number of blue chip neighbourhoods.”

“Limited availability of product has, in turn, placed mounting pressure on housing values. As a result, the million dollar home no longer holds the same cache it once did and in larger markets such as Vancouver, Calgary, and Toronto, it’s simply a starting price.”

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‘I want my equity to be unique — not another one in a stack’

Carolyn Leitch - Globe and Mail

The house at 29 Vernham Court in North York is stunningly up-to-the-minute.

The centre of the house resembles a marble courtyard while the dining room is ready to receive guests in a bow-fronted space overlooking an indoor garden and glass atrium. The heat and air conditioning are divided by east and west to take into account the movement of the sun. An experiment in infrared technology makes hot water glow red and cold water blue when it rushes from the tap.

The polished sophistication also represents a shift in the ripening Toronto real estate market: Builders are risking huge sums of capital on luxurious houses with adventurous designs and exotic finishes, built purely on spec.

In this case, the asking price is $3.68-million.

A Toronto real estate agent says his industry colleagues have been startled by the house’s modernity and singular features. “It was amazing to entertain the agents at the open house,” he says.

That’s because, traditionally, a house built “on spec” — or without an owner lined up — may be deluxe, but it will be mainstream in style to appeal to the greatest number of potential buyers.

Another agent says there appears to be plenty of young couples these days who have the means to spend $3-million or more on a house. But these buyers lack the time to search for a property, tear down an aging bungalow, hire an architect and commission a custom-built home.

Still, they want a house that creates the appearance that that’s exactly what they did. In the $4- to $5-million range, obviously you want to have something that stands out,

The Vernham Court house has 8,600 square feet with five bedrooms and eight bathrooms on one-third of an acre. Some call the posh North York neighbourhood near Bayview Avenue and Old Colony Road “the new Forest Hill.” In Forest Hill, however, the lots tend to be 50 feet wide compared with the 85-foot width at 29 Vernham.

The house is designed to bring in as much light as possible. The house really reads all about light and sunshine.

Meanwhile, the curving staircase is “a work of art in itself,” she points out, and the foyer is like an indoor courtyard. The dining room can accommodate 14 for dinner, while the breakfast room has a serpentine shape, seating for 10 and Brazilian cherry floors.

The European kitchen is sleek and monochromatic with HanStone countertops.

Upstairs, an expansive master suite is sheltered behind double doors and its private balcony looks onto the garden.

Downstairs, the doors to the garden, indoor planters filled with jade plants and a built-in watering system bring life even to the basement, Ms. Lindsay adds.

“The idea of framing the windows indoors with greenery so you’ll have it year-round is very clever,” she says.

They are marketing the house on an “international properties” website. So far they’ve had a lot of interest from the Middle East and Asia. They see the likely buyer as a business tycoon who has plenty of money and cosmopolitan taste but who doesn’t want to start from the ground up.

The builder, Toronto-based Enirox, worked with TAS Design Inc. to design the house. “We were not limiting ourselves as if we were aiming at a particular homeowner,” designer Ali Shakeri says. “Enirox just didn’t want to put any limitations on the design.”

The purchaser of this home, he imagines, could be someone who has lived in many different cities in the world. The house is large enough for a buyer with children, he says, but it’s also designed for entertaining. “It’s kind of a party house. So you need that kind of grand foyer.”

Choosing the finishes took a long time, says Mr. Shakeri, who is now a project manager for Enirox. Walls were painted and repainted to keep the effect airy and lacking any definite hue.

“We care about the quality of the light inside the home. We may have enough windows but still we add skylights. That brings a different quality of light in.”

Mr. Shakeri says the home’s striking modernity takes some getting used to for some of the potential buyers he has seen walk through with their families. The kids are often dazzled by the wide-open spaces, he adds. “Children love it. I think children are more open-minded than grown-ups when it comes to design taste.”

Many people are nearing the end of their careers and have finished raising their families so they’re downsizing, she says. Other couples don’t plan to have children.

The three-bedroom May Street house built by the villa management and development company LaCure, is a detached house on a cobblestone street. Listed at $5.5-million, the 3,594-square-foot house is built around luxury in the form of walnut-lined dressing rooms, climate-controlled wine cellar, marble countertops, and Philippe Stark hardware.

At the top of the circular staircase, bibliophiles will find a floor-to-ceiling wall of bookcases fitted with a railed library ladder. Floors of walnut and limestone are heated on all three levels. The entire main floor is one great room.

Real estate agents, are blown away by the design and intrigued by the concept. Some other agents have brought families of four or five, but the house is entirely unsuitable, she says. “It’s much more focused on a niche market.”

Most builders, she explains, are terrified to build something that won’t appeal to at least 60 per cent of the market. Ms. Wight says some home buyers visit the more usual mainstream new homes with five bedrooms and a main-floor family room and wonder what they’ll do with all of the space. At the same time, they may not be ready for a condominium.

The house at May Street has a large kitchen and great room that combines dining and living into one spacious area. Floor-to-ceiling doors lead to the garden and a fireplace heats the living area while remaining visible from the terrace.

The kitchen is “over the top” with a six-burner range and other toys for those who like to cook. A sliding glass and steel-curtain wall can completely close off the room if caterers are at work.

Some urbanites, she adds, don’t want formal living and dining rooms that they’ll never use. “I want to have edgy urban living where I can be with my guests or my significant other, toss the pasta and pour the wine.”

Most believe that a detached house is more likely to rise in value and she finds many potential buyers agree. “I want my equity to be unique — not another one in a stack,” is the mindset of many.

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