The features that home buyers look for reflect the changing realities of the world we live in.  As the average age of the population rises, so does the demand for one storey homes.  With environmental issues reaching our collective consciousness, so does the demand for “green” features increase.

I spent some time this morning reading various reports and studies to find out the trends home builders and renovators might want to pay particular attention to.  What I found was not surprising at all.  Buyers are placing increased importance on:

•  Open concept floor plans
•  One level living
•  Main floor master bedrooms
•  Universal design
•  Energy Efficiency

Recently, the Ontario Association of Home Builders held their meetings in Collingwood and some of the newer trends they identified were:
 
 - McMansions are being traded for better quality homes
 - People want to age-in-place and are looking for homes that are easily adapted for accessibility
 - People are expanding their living into the outdoors with a greater demand for 3-season living spaces such as covered patios and  porches, sunrooms

They also specifically noted that buyers are demanding greater energy efficiency in their homes and are willing to pay for it to a certain point.  Some of the features they are looking at include:

*  Homes that are pre-wired to be solar ready
*  New products and building techniques that will address the fact that homes built under the new building code in 2012 will be more air tight
*  Kill switches to easily turn off appliances using phantom energy
*  Home automation systems for multi-media
*  A movement away from stucco to things like stone and hardiboard
*  Kitchens with walk-in pantries, solid surface countertops, specific task lighting and energy efficient appliances.

If you are buying a new home, it’s a good idea to incorporate as many of these elements as possible because they are likely to become the norm when you one day face resale of your property.  For people renovating their homes, it’s also a good idea to consider these trends both for resale and for efficient and healthy home operation.  Remember, the cost of operating your home (heat, hydro, water) are the second  price tag of ownership.

Well, maybe that is a big first step.  But it is true indeed that one persons junk is another persons’ treasure.
A few years ago, we had a yard sale and among other things, there was an old iron bed headboard.  The lady who bought it told me she was going to give it a fresh coat of black paint and it would become a garden gate.  What a great idea!

Now, I am the least creative person I know when it comes to decorating ideas.  If it weren’t for my friends, I can’t imagine what our home might look like.  But somehow over the years, we’ve been able to create a nest that we think is cozy and beautiful without spending much.  Believe it or not, after over 30 years of home ownership, we don’t own any new furniture.  Even our bed was a wedding gift!  Recently it occurred to be that the golden pine cannonballs were very “retro” now but in need of some updating.  Rather than buy our first bed, we shipped it off for refinishing (with VOC-free paint of course) and voila – the now linen-cream coloured posts and frame look new and chic.

We had an old chair that was SOOOO comfy but sadly, the stuffing didn’t survive our kids teen years.  Rather than cart if off to become land-fill, we had it recovered and it’s gorgeous if I say so myself.  We splurged on exquisite quality upholstery when Three Herons had a sale on downtown and now, it sits proudly in our living room as a focal point of the room.

We have a lamp made out of an old knitting spool.  In one house I sold, the headboard of their frameless bed was made of a piece of driftwood with small glass vases affixed for dried flowers.  I’ve seen framed children’s art that look like gallery pieces.

When it comes to home decorating, I’m trying harder to see what I can alter, reclaim, adapt and reuse before rushing out to buy new.  How about you?

With the current Home Renovation Tax Credit (HRTC) and the ecoEnergy grants available, home renovation appears to be alive and well.  It certainly is in our house.

Have you ever wondered what the pay back might be for the money you invest in those renovations? 

The Appraisal Institute of Canada has a handy calculator on their website to assist people in estimating this pay back range on 20 of the most popular home renovation projects.  While it is a guideline only and does not reflect differences in various real estate markets, it will give most people a good sense of what is really worthwhile doing in terms of investment.  You can visit the website here.

I would have to add that renovations have a pay back in more subtle ways as well that are harder to quantify.  Some renovations may not easily have a dollar figure attached however, they will impact the salability of the house.  For example, putting in new carpet is said to have a return value of 50-75% of the original cost.  If however you’ve put in a bold colour that only you and three other people might love, that could drop considerably.  On the other hand, replacing that purple carpet with hardwood flooring might yield a return of greater than 100% and affect how quickly the house will sell.

Do you ever wonder how your own behaviours and expenditures as a home owner stack up to the norm?

According to a report released by the Canada Mortgage and Housing Corporation (CMHC), approximately 1.7 million households across 10 major city centres spent almost $21.3 billion on renovations to their primary residence in 2008.  About 35 percent of households spent $1,000 or more on these renovations.

Other highlights from the survey include:

• The most popular reno was painting or wallpapering a room, with 28% of those who renovated stating they had undertaken this type of renovation in 2008.  Remodelling a room or installing wall to wall carpeting or hard surface flooring came a close second at 27 percent.
• Of those households who renovated in 2008, about 75% did alterations and improvements to their homes, 46 percent did maintenance and repairs.  The survey further noted 19% completed both maintenance and repairs and alterations and improvements in 2008.
• The main reason for renovating given by the renovating respondents was that they wanted to add value, update or to prepare their home for selling.  Second most popular was that the dwelling needed to be repaired.
• Renovating to increase energy efficiency was popular in Halifax and Ottawa in 2008.
• The majority of those households who renovated, hired a contractor to do all of the work (39%);  while 30% did the work themselves or with help of family/friends and approximately 25% both hired a contract and did some of the work themselves.
• Of the homeowners surveyed across the 10 major centres, an average of $12,600 was spent on renovations, which is down approximately $200 from 2007. 
• The survey found that householders living in older homes spend more on renovations.  $20,000 on average was spent on renos to home built between 1921-1945, while in newer homes built between 2006-2008 spent around $7,500
• Of the renovating households, 46% stayed on budget with their renovation costs, while 38% went over budget.
• Close to half (46%) of all homeowners included in this survey indicated having an intention to undertake home renos of more than $1,000 in 2009.  This is more than the number of households who DID undertake renos in 2008 (35%.)
• The number one method of paying for renovations in 2008 was from savings (almost 75%) as opposed to around 26% using credit cards or lines of credit.

We often talk about our desire to “go green” but outside of replacing fluorescent light bulbs and using organic garbage bins, I’m not sure some people really have been able to translate their desires into concrete action.  I’ve been thinking about this a great deal lately as we try to develop our own green plan here in our home.

A few weeks ago, it was a real treat for me to visit my clients, Dr and Dr Vecchio at their Inner Harmony Chiropractic Clinic and to see a green commitment in action.  You may recall from earlier posts  that Dave and Melissa have a special touch when it comes to renovating and, they’ve done it once again.

When they bought this building last year, it had been home to a lovely older couple for many, many years.  The Vecchio’s could envision modifying the property into a live/work space with a longer term view of an exclusively commercial space.  They brought in Paulette Clement who has a master’s degree and many years of experience in the area of Feng Shui as well as a professional design background.  I have to say it was fascinating to hear her thoughts and really in hindsight, they were spot on.

Since then, the Vecchio’s have done a marvellous renovation that has been 90% green.  Here are some examples of what they did:

•  Purchased materials from the Habitat for Humanity Restore in order to recycle and reuse wherever possible.  They found things like tiles, wood, mirrors and old doors that could be put to reuse
• All paints and finishes are low VOC including the floor stain which is a non-toxic, water-based formulation made by SamaN.
•  I found the unique, textured  finish on the reception area walls of particular interest.  Made from American clay, it comes in a powder from eco Inhabit in Meaford.
• Most windows were replaced with Energy Star approved windows
• They used natural slate in the entry and bathrooms while the old existing hardwood floors were refinished with low VOC, water-based stain.
• The unique reception area bench was made with wood reclaimed from an old park bench and old doors!
• A half wall made of natural stone product separates the waiting area from the clinical area allowing light and air to flow freely through-out
• The reception desk was reused from another business
• All of the original wood trim was salvaged

“Meet” Melissa in this quick 1 minute video:

A few weeks ago, I read a blog post  written by one of my favourite home inspectors about radon gas.  For years we’ve heard rumours that this may become the “next big thing” and suddenly, it seems to be here.

Radon gas is an invisible and radioactive gas that may be present in cellars, basements and crawl spaces of our homes.  It is the second leading cause of lung cancer, next to smoking.  According to Steve, “It exists naturally in the environment in very low concentrations. Radon comes from uranium in the soil. While uranium is not present in significant quantities in most geographical areas, traces of uranium in the soil exist everywhere. As uranium breaks down, it produces radon gas.”

Then a few week’s ago, I was reading my latest issue of Maclean’s magazine and lo and behold, there’s a headline that says, “Feds look into Canada’s killer homes” and it’s all about radon.  It says that while radon is hardly new, the Federal government is suddenly anxious to investigate further to find out which neighbourhoods are particularly at risk.  They plan to spend almost $1 million testing 18,000 randomly selected homes to pinpoint possible danger zones.

There are do-it-yourself test kits available at hardware stores for around $50.00 but resolution is best left to the professionals.  I doubt most of us have reason to run out and buy a kit however, I can predict the day will come that insurers will require testing in certain zones.  This is an issue to keep our eye on in the real estate industry.

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If You Are Renovating…
Buying A House With Aluminum Wiring

As reported in the last post, we recently had a Home Energy Audit performed on our own 22 year old, brick bungalow.  Although it ranked very well with respect to our over-all energy efficiency, there are still things we can do to make it better and in this post, I’d like to review some of the grants available to assist homeowners with their retrofits.

After having the audit, you have 18 months to complete the recommended work after which time, the auditor will come back to re-assess your home.  In our case, we have a few areas to concentrate on:

1. Improve our attic insulation up to an R50 value
2. Seal air leaks predominantly behind outlets and around pipes
3. Replace two of our toilets
4. Replace two windows

I estimate that our costs will be roughly as follows:
 1.  Attic Insulation: $800 (DIY style)
 2.  Air Sealing: $60
 3.  2 new toilets $400
 4.  2 new windows $800
  TOTAL           $2060.00

If we do this recommended work, the rebates we will be eligible for include:
 1.  Attic Insulation: $600
 2.  Air Sealing: $300 (plus a possible bonus of $150 if we exceed targets)
 3.  Replace 2 toilets $200 ($100 each)
 4.  2 new windows $120
  TOTAL $1220.00

So in terms of the bottom line, our net investment in these improvements will be under $850.00.  But wait…  We can also claim these under the new Home Renovation Tax Credit reducing our net outlay by up to a further 15%.  Not bad!  On top of that, I calculate that these changes will reduce our home operating costs by about $350-$400.00 annually. 

We’ll make our home more comfortable, improve our home’s resale value, save on energy bills AND help to have a cleaner environment.  Gosh, is there any reason NOT to do this?

There are many other rebates available that I have not listed here but the local Environment Network website has a complete list of the consolidated Federal and Provincial grants available.

I’ll keep you posted on our own progress as this evolves.  So far, we’ve purchased outlet and door gaskets and insulating foam.  Hubby has his “Honey Do” list set for today.

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You, yes YOU Should Have a Home Energy Audit

The house that my hubby and I live in is just over 20 years old.  It was well built and you wouldn’t think there would be much value to having an energy audit done.  Think again.

Since talking to people a lot about things like ecoEnergy rebates,  the pending Home Energy Rating Act and about becoming a certified Green Broker,  I’ve found that public awareness and sadly interest, is still very low about green real estate initiatives.  Almost daily, I find myself telling people about the opportunities available.  Even in the general real estate community, few REALTORS® seem to be aware of these types of things.

This week, we had our audit done and thought it may be helpful to follow the process with you. 

First, we went online to the Collingwood based, Environment Network website and filled out a request for an audit.  Within 24 hours, we got a call and an appointment was arranged within days.  The price is $300.00 plus GST however, the government will automatically refund $150.00 to us after the audit is done.

Yesterday, Jeff, the auditor arrived and started by doing a walk about the outside of the house taking notes, measurements and pictures.  Then he came inside and toured the house looking at things like our toilets, windows, heating/cooling mechanicals and an attic inspection.  All the while, Jeff was most pleasant in explaining to us what he was looking for and he was very patient in answering our questions as we went along.

Next came the really fun part.  Jeff set up a contraption at the front door which created an air lock through which he placed a large blower fan.  This was connected to a computer and controller device of some sort so that a blower test could be performed.  Basically what it does is create a de-pressurized state in the house which causes air leaks to be easily revealed.  Jeff explained to us that the combined effect of multiple little air leaks could be the equivalent to having a big hole in your wall directly to the outside.

While the blower was working, we then walked around the entire house and looked for drafts around things like electrical outlets on outside walks, the range hood fan, dryer vents, window and door frames, baseboards and so on.  Our energy rated windows performed well but we did find some air leaks around doors that could easily be fixed with new gaskets.  We were amazed to feel the air blowing back in through vents – they had never been cleaned outside and were no longer closing properly.  Places where vents headed outside or too the attic left some real drafty holes and a quick correction with foam spray should solve those problem areas.  Our attic is well insulated but with the passage of time and the recognition of higher standards, Jeff explained to us that we could blow in lots of extra insulation to bring it up to an R50 value for a very reasonable cost.

One of the things we had not thought about was phantom energy. Today, when we turn off appliances, battery chargers, TV’s or computers, the little lights are still drawing currents that add up around the house to several dollars of electrical usage that would be the equivalent to leaving several lights on 24/7 all year round.  By simply plugging these into a power bar and shutting that off at night, we could reduce our energy consumption painlessly.

In Collingwood, every drop of water we use is meterered and then sewer fees are tied to that.  Jeff pointed out that two of our toilets were 13L tanks instead of the more efficient 6L tanks readily available on the market today. By changing those, we could reduce our water consumption by 7L every single time we flush and that would certainly add up over time. He also suggested we consider investing in or renting one of the new tankless hot water heaters that only heat water as needed rather than 24 hours a day, 365 days a year.

In the end, our house rated as being in the top rating category for energy efficiency but yet there is much we can do to improve.

Jeff gave us a kit that explained all of the things we could do.  It also included a questionnaire that could assist us further in improving our energy efficiency by looking at newer energy rated appliances, how we use our furnace and ceiling fans, energy efficient lighting choices and so on. 

But the best part was reviewing the ecoEnergy grants available to us.  I’ll review that in the next post.

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Would Your Chalet at Blue Mountain Pass This Test?

By now you’ve likely heard about yesterday’s proposed Federal budget.  As expected, it includes some initiatives to stimulate the housing industry which is a darn good idea if you ask me. 

Did you know that according to research conducted by the Altus Group for the Canadian Real Estate Association, each residential real estate transaction in Canada generates over $32,000 in ancillary consumer spending and, creates almost 95,000 full-time direct jobs as a result of that activity?

But back to the budget.  For home owners and home buyers, it includes incentives as follows:

1.  First-Time Home Buyers’ Tax Credit
Assisting first-time home buyers with tax releif of up to $750.00 for the costs associated with the purchase of a home such as legal fees, disbursements and land transfer taxes.

2.  Increasing Withdrawal Limits Under the Home Buyers’ Plan
Raising the limit on withdrawals for first time home buyers from $20,000 to $25,000.  With the $5,000 increase to the withdrawal limit, two first-time home buyers purchasing a home jointly (e.g. a married or common-law couple) with sufficient RRSP funds in each of their names may now together withdraw up to $50,000 from their RRSP funds toward the purchase of a home in Canada.   Unlike regular RRSP withdrawals, the HBP withdrawals are not included in income when withdrawn.  Amounts withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal, or included in the individual’s income if not repaid.

3.  Expanding the ecoENERGY Retrofit Program
Although not a new program, this measure provides an additional $300 million over two years allowing more homes to qualify.

4.  Home Renovation Tax Credit
This is the one causing all the excitement today.  This is a temporary program that will provide a 15-per-cent income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010.  The credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief.

I would add that, in my opinion, the 2 billion dollars being set aside for municipalities is also important to homeowners as it will have a direct impact on property taxes.  In Collingwood for example, the local budget decision was deferred this week pending the budget to see what infrastructure projects (sewers?) might qualify.

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!

If you were selling or renting out your property, would you agree to provide the potential buyer or tenant with a report describing the energy efficiency of your property?  What would the results of such a report show?

In October 2008, the Ontario legislature passed the second reading of Bill 101 known as the Home Energy Rating Act.  If approved, this new act will require that owners of detached, semi-detached homes and units in multi-unit, low-rise buildings, who enter into an Agreement of Purchase and Sale on or after January 1, 2011 or into a tenancy agreement on or after January 1, 2012, will need to provide a Home Energy Rating Report of the building to a prospective buyer or tenant.  Read that again because chances are, it will affect YOU at some point.

The new act proposes that a Home Energy Report will be required that evaluates the energy efficiency of a building when it is sold or rented.

© Chrisharvey | Dreamstime.com

In December, Green Saver announced that it has joined forces with the Ontario Association of Home Inspectors to offer EcoEnergy home audits across Ontario with training of inspectors to commence this month.

If you anticipate selling a residential property any time after the end of 2010 or, of renting it out after the end of 2011, now might be a good time to develop a plan for improving the energy efficiency of your property. Up to $10,000 in grants are available to homeowners for retrofits done as shown in this chart of possible rebates available.  You can start with an Energy Audit  which typically costs about $300.00 although right now the provincial government will automatically rebate you with $150.00.  Locally, the Environment Network in Collingwood has excellent information on their website outlining the steps you should take and explaining the process in general.

Really think about this.  While it seems to be getting very little notice so far, I suspect this will become a very big topic over the next couple of years.  You have a chance to help your home, your pocketbook, the environment and a successful future sale by getting started now.

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A Breakdown of Home Energy Costs

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!