Yourhome.ca Editor's Blog

So we bought the house, now what?

Posted at 11:05 AM in House hunting | Permalink | Comments (0) | TrackBack (0)

April 29, 2009

Moving in a month!

We take possession of our new house in a month! A month! This time next month, I'll be cleaning out my apartment and sprucing up our new digs. I can't wait to move in, get settled and start enjoying the new home.

But, at the same time, we have only a month to get ready to move. We need to get estimates for knob and tube rewiring (we're going to use my purchaser's visits to do so, so we can hit the ground running). We need to finalize insurance details and send off more forms to the lawyer. We need to transfer our services and arrange for mail to be forwarded. We need to measure rooms and plan out where furniture needs to go. We need to start planning our decor. Oh yeah, and we actually need to pack!

I do, however, feel like we're making progress. Mr. Speedy and I have been clearing out our closets and donating any clothes that we haven't worn in the past year, to minimize the amount of useless stuff we actually need to move. We'll do the same as we start boxing up our stuff, too.

Our new mantra is to only keep, and buy, stuff we truly love, rather than stuff that we can make do with. This is great for reducing our throw-away consumption, but it also means that I'm agonizing over decisions!

For example, I'm on the hunt for a new table and table runner. My new dining room is rather narrow and rectangular, with lovely glossy white baseboards and a built in wine cabinet. The existing wall colour, which I like, is a greenish-blue, and the light fixture is a funky round chandelier in a smoky grey. I want to replace our existing dark wood, round table with a long, rectangular model, perhaps in glossy white. I've been eyeing West Elm's parsons table, though have also had my eye on a few glass-topped models. I can't decide!

As for the runner, I recently saw the great Chilewich placemats and runners, shown, while shopping on the Danforth. It's kind of funky and modern, in an easy to clean vinyl, and I thought the circles would be a great match for the chandelier, and a nice contrast to the rectangular table and room.

But what colour? I'm worried the black will look too stark on a white table, but also fear the smoke will be a little blah. What do you think?

Catch up on the home hunt:

More negotiations

Learn more about the people you may want on your home buying team

Posted at 10:16 AM in Decor, House hunting, Renovations, Repairs and maintenance | Permalink | Comments (0) | TrackBack (0)

April 25, 2009

POLL: Has the market hit bottom?

With recent signs of life in Toronto's housing market, including quick sales and studies citing greater affordability, it seemed like a great time to ask Yourhomers if they thought the market has hit bottom — and the majority say no!

More than half, at 55 per cent, of voters said the market will continue to slide. Just under a third, at 28 per cent, said we've hit bottom while 11 per cent say the worst might be over. The remaining six per cent said they didn't know.

Personally, I have no idea whether we've hit bottom and are recovering or if the market is merely having a bit of a spring thaw. Either way, it seemed like a good time for Mr. Speedy and I to buy!

This week's poll continues on the idea of buying a home, looking at a recent trend of people trading in large homes for teensy luxury condos — with astounding price tags. Would you rather put your dollars towards square footage or amenities? Vote on the front page and let me know!

And, for some more Saturday reading, check out the fabulous wallpaper in Colin and Justin's bedroom makeover, get some eco-friendly product inspiration and learn the basics of green gardening (after all, with this weekend's forecast, isn't it the perfect time to putter in your home plot?)

Posted at 08:45 AM in Around the site, Decor, Gardens, Green living, House hunting, News, Trends | Permalink | Comments (0) | TrackBack (0)

April 24, 2009

So we bought the house, now what?

On the home hunting TV shows that I adore so much, once the offer is accepted, the couple/family/friends celebrate, move in and live happily ever after (or at least that's the assumption). But, after a little bit of celebration, Mr. Speedy and I found out that the work was really only getting started now that we had the house!

Before closing, which is normally a 30 to 60 day period (ours is about a month and a half), we've got to get all of our documents to our real estate lawyer, set up home insurance and choose our mortgage options, not to mention giving notice to our landlords, packing, transferring hydro, internet and other related bills, changing our address and actually doing the move.

To start tackling this massive list, we started by looking for a real estate lawyer, whose job it is to review the sales agreement, handle payments and give you the keys on closing day, among other tasks. Your lawyer is also responsible for dealing with the insurer, mortgage lender and the sellers' lawyer. They'll also handle title insurance, if you choose to go that route, which can help protect you from issues such as lack of building permits by former owners or after-closing fraud.

We asked around for recommendations and chose someone pretty close to our new hood to make picking up the keys easy, as we're guessing it's going to be a pretty hectic weekend when we move!

We're still filling out all the necessary paperwork (and, boy, there's a lot! We thought we had signed our life away after finishing the agreement, but it just keeps on coming!) but we have decided to go with title insurance due to a possible encroachment issue on our new property.

The next stop was our mortgage broker's office. Because we'd gotten a pre-approval, she already had most of the necessary documents from us, so we just had to hammer out all the details.

The most pressing, for us, of these was how often did we want to pay? Weekly? Bi-weekly? Monthly? By choosing a bi-weekly option, you can cut years off of your mortgage term, as it gives you two extra payments each year. As an example, you can cut a 35 year mortgage term down to just under 30 before you even make your first payment. Weekly payments slice this down even further. We ended up going with the bi-weekly option to coincide with our pay schedules. It's definitely worth going through all the math with your broker or mortgage specialist!

We also had to decide on fixed or floating rates. You can save a lot of money going with floating, but it could also mean fluctuations with payments down the road. This was really a tough decision for us (what if we could have saved hundreds, if not thousands of dollars?), and one that merited a lot of discussion.

We didn't know if we could stomach the uncertainty in our first few years of home ownership, especially if the rates went up and our bill jumped, so Mr. Speedy and I decided to opt for a fixed bill instead. Once we get more comfortable with our monthly budget, and are fully settled into a home ownership routine, we may consider floating rates again.

After signing a ton more paperwork, the last pressing issue on our to-do list for this week was insurance. With our knob and tube issue, which we plan on fixing as soon as we get into the house, get estimates and find someone reliable (and affordable!) to handle it, we are a little concerned about the kinds of rates we're going to be offered. With that task now safely passed off to my father-in-law, who is an insurance broker, we're well on our way to getting it handled.

So, with a few more signatures here and there, along with a couple more cheques, of course, we can soon start focusing on the fun stuff, like packing and choosing a new chandelier for the master bedroom!

Catch up on the home hunt:

More negotiations

Posted at 08:30 AM in House hunting | Permalink | Comments (2) | TrackBack (0)

April 20, 2009

More negotiations

When I left you on Friday, I was recounting the findings of our home inspection. While disappointed in the wiring issues, we decided that the home was still worth pursuing, but did ask the current owners to cover half of the estimated repair costs.

While we thought this was fair, as we probably would have offered lower had we known the extent of the knob and tube, the sellers weren't that keen on dropping the price at all. In fact, we were starting to suspect that they wouldn't budge in the slightest.

Luckily, that wasn't the case, though they didn't budge a whole lot. Their offer was less than half of what we'd asked for, which was half of the repair costs. Essentially, that meant they came back at under a quarter of the rewiring estimate.

That meant the ball was in our court. We had to decide if we thought the home was worth it. We were more than a little overwhelmed.

At this time, I was also investigating encroachments, as the sellers wanted us to sign an acknowledgment of an encroachment. The survey didn't reveal which party was encroaching, as it was done long before either structure had been built, but after consulting with a real estate lawyer, and learning that title insurance should help us if our structure turned out to be a problem, we decided that this highly complex issue wasn't a big problem for us.

Which left us only with the knob and tube. The insurance concerns were foremost in my mind, along with a fear that squirrels might get at it and burn the whole place down (as I've already explained, house hunting can make you freak out a little).

I was also worried about covering the repair costs so soon after moving, and had to do a lot of number crunching to see if we'd be able to swing it at the same time as all the other costs, including the lawyers' fees, the balance of the downpayment (you pay a deposit with your offer), some necessary furniture, moving van, etc., etc. It adds up, and we were certainly not going to take on a potentially uninsurable property (or, more realistically, a property with a terrible insurance rate and the potential of being ordered to fix it to maintain our coverage) without being certain we could afford the repairs immediately.

We were also a little peeved that this was such a surprise. We'd deliberately asked about the wiring to avoid such issues. However, we had to put aside our annoyance in order to (or at least try) to make a rational decision. It's always hard to take emotion out of the equation, but we didn't want to give up on an otherwise great property for us — which met our location and proximity to transit and friends requirements, while being structurally sound and surpassing our hopes for space and yard in our price range — just because we were annoyed by a surprise.

So out came the pro-con lists, comparable recent transactions in the hood and others nearby, and a look at what else was currently on the market in our price range.

And, of course, a lot of discussion. Mr. Speedy and I sent frantic emails and text messages back and forth on the way home from work and sat down to chat when we both were home. We had to make a decision, and we were approaching the end of our offer deadline.

Finally, we decided that even though we weren't keen on the rewiring surprise, the house was truly our perfect starter home.

So, now that we've dotted our "i"s and crossed our "t"s, I can tell you that we accepted, and we'll be in our new place come June!

Things were pretty tough getting to the decision, but, after talking it out we were both 100 per cent confident in our decision.

And, while in many ways the work is just beginning — we have mortgage options to firm up, a lawyer to provide information to and an insurance policy to obtain in the immediate future, not to mention giving notice on our lease, packing, moving, furnishing and redecorating, we're still trying to take some time to celebrate.

We're now homeowners!

Catch up on the home hunt:

Find me on twitter @jenspeedy

Posted at 09:32 AM in House hunting | Permalink | Comments (0) | TrackBack (0)

April 17, 2009

Getting a home inspection

So, after making a conditional offer, which was accepted, we had to get to work meeting the conditions of the offer!

Because we'd gotten a mortgage pre-approval, we already knew we could secure the needed amount, so meeting the financial conditions were as simple as emailing Ann, our mortgage broker, and providing a copy of the MLS listing, the agreement, and any other supporting documents.

As for our second condition, we knew from the beginning of our hunt that we'd want to do a home inspection. It's not legally necessary, and, in a competitive situation, people often go without it in order to strengthen their offer. It's also another expense in an already costly process.

But, it's also a great way to get a handle on the current condition of the home, the life expectancy of major elements, such as the furnace and roof, and any serious issues that could even prevent you from buying the property.

Mr. Speedy and I definitely didn't feel comfortable relying on our very, very limited knowledge of home construction, termites, electrical and plumbing systems (to name just a few aspects) in order to decide whether the house was a sound investment.

So we asked around for recommendations and booked an appointment. The inspection lasted roughly three hours, during which time our inspector, Richard, examined the roof, deck and exterior elements as well as the interior and all of the mechanical systems.

I was at the home during the inspection and, in between getting updates on things Richard found, I hung out with RealEstateSimon and RealEstateEmily and started thinking about redecorating!

By the end of the inspection, I had a pretty good idea of the home's condition, which was augmented by an 11-page report with the full details and cost estimates.

There were some nice surprises, such as a double brick wall between us and the neighbouring semi, and one not so nice one: a lot more knob and tube wiring than we'd been told to expect. (Knob and tube is an outdated electrical system, which isn't grounded, and it's becoming increasingly tricky to insure.)

This was not good news. Mr. Speedy and I weren't looking for a big project, and the quantity of knob and tube in the home definitely warranted almost immediate, and large scale, repairs. Our insurer could also require us to fix it within months of moving in. With all the other costs of buying a home, from the downpayment and closing costs to moving fees and new furniture, it could put a pretty serious dent in our already depleted pocketbooks.

Basically, we got spooked. Which led to a lot of discussions, and a few more sleepless nights.

I sent out emails and phone calls to family, friends and the Twitterverse trying to figure our just how bad it could be. Mr. Speedy and I talked a lot, trying to decide if an electrical overhaul would be enough to make us walk away from the house, and the deal. It was really tough.

Because the home was otherwise in good shape, we decided to move forward, but see if we could knock the purchase price down because of the unexpected repairs. So, back we went to negotiations ...

Photo: Yours truly and home inspector Richard J. Gaughan (of National Home Inspection Ltd.) at our inspection. Here, well, to be honest we're actually posing for the photographer. But we are re-creating a moment when he was explaining some needed roof repairs. (Photo by Paul Irish/Toronto Star)

Catch up on the home hunt:

Find me on twitter @jenspeedy

Posted at 12:03 PM in House hunting | Permalink | Comments (6) | TrackBack (0)

April 15, 2009

Making an offer

So, a lot has happened since my last post. I'm sorry to have left you all waiting, but I was swamped with a combination of home hunting activity, the long weekend, odd jobs not related to Yourhome.ca and several restless nights, thanks to a combination of anxiety, nerves, and excitement all wrapped up with some Easter-related home sickness.

But, I promise to catch you up! So, let's cast our minds back to Thursday afternoon, when we'd found a home we liked. Now, the problem was that we weren't 100 per cent sure about the house, and another offer was supposedly pending.

After many frantic texts and emails, Mr. Speedy and I agreed that we wouldn't make an offer before going back for a second visit, to make sure the house was actually good for us, not just better than everything we'd already seen. If someone offered before we got our second look, then obviously this home was not meant to be.

Now, I should also add that this was the start of the long weekend. RealEstateSimon was getting ready to go out of town with his family, so his real estate partner, the lovely RealEstateEmily, stepped in to show us the home that evening.

No offer came in before we arrived to look at the house, so we were able to take our time, poke around, and discuss in detail what we liked (the location, the size, the recent renos, the overall condition, the yard, etc.) and what we didn't (a busy street, some wiring updates, etc.). As we walked through, I was already planning out spots for our furniture and Mr. Speedy was making plans for a mounted, larger flat screen TV.

We're so happy we went for the second visit, because it helped calm our nerves and reinforce our first impressions. In fact, we even noticed a few more likeable things the second time round!

So, after spending an awful lot of time on the current owner's very comfortable furniture, we decided to make an offer. We decided that not only was it a nicer property than anything else we'd seen, but it could also be a great fit for us — which is truly the key.

Before finalizing our offer plans, we looked at recent transactions in the area to get an idea of whether the home was fairly priced, and discussed our finances and any conditions we'd want on the offer — for us these were the relatively standard financial (making sure the bank was cool with the property) and home inspection conditions.

We settled on a price, initialled what felt like hundreds of pages, and asked them to get back to us before their scheduled weekend open house.

The offer was registered, and then we just had to wait. And wait. It was a very long, and pretty sleepless, night, followed by an early morning coffee and tea run and a "stakeout" of the house while waiting for them to either reject, accept, or sign back the offer.

Really, we were just hanging out in Emily's car outside the property, but it did feel a little like what they do in all those spy TV shows. Meanwhile, RealEstateSimon was busy texting us from his vacation to stay updated!

So, we waited. And waited. And, finally, their agent emerged with a sign back. They met us somewhere in the middle for price, and after a lot more discussion, we reached an agreement.

We got to meet the current owners, something that is apparently a bit out of the norm, and then signed another thick stack of papers.

But, there's still more work to be done. We're not quite home owners yet.

And, sadly, this is the part of the process not covered on most of the property shows, so we're heading into unchartered territory as we work to meet the conditions before our deadline.

Catch up on the home hunt:

Find me on twitter @jenspeedy

Posted at 10:50 AM in House hunting | Permalink | Comments (2) | TrackBack (0)

April 09, 2009

House hunting makes me ... nauseous?

Mr. Speedy and I went to see two homes last night. The first was a total bust, as it was a case where the photos made it look far more desirable than it was in reality. But the second was mighty tempting, and by far the nicest home we've seen thus far.

It's an East York semi with a lot of the things we were looking for, including three decent sized bedrooms, a nice living space and dining area and room for all the video games in the partially finished basement. It's close to transit and appears to be in very good condition. As an added bonus, it's been lovingly, and stylishly, decorated. It's been on the market for a total of three days.

We really liked it. I pictured our furniture in it, and thought about coming home to it. But, here's the rub. We're nervous newbies. We weren't immediately ready to make an offer. We saw other people viewing it, but still hoped for a little time to mull it over, we we needed to make detailed pro-con lists and secure a slightly higher mortgage pre-approval.

In the meantime, there may be another offer coming in (though nothing definite yet), and I don't know if I'm ready! And, we're not so sure about getting into competition — it seems like an awfully nerve-wracking and stressful process, especially just before the long weekend!

The thought of buying makes me nervous and nauseous, but at the same time, I'd definitely be bummed to lose out on the property.

But, we also know that it's springtime, and lots of new properties are coming on the market all the time — so it's not like this is the only house we could ever buy.

So, we're going to need to make a decision, either to make an offer, forget about it, or play the waiting game. At this point, Mr. Speedy and I still don't know what we're going to choose!

Catch up on the home hunt: