WHAT IS THE MARKET VALUE OF YOUR HOME?

Before you can make an informed decision about selling your home you often need to verify the Market Value of your Home. Market Value is defined as the price that you could expect to sell your Home on the open market given a normal period of exposure. Receiving an accurate estimate of the Market Value can be crucial if your next purchase depends on the equity in your existing home, or if your finances allow little margin for error. What then is the best method of obtaining the most accurate estimate of Market Value? There are several routes to obtaining  an estimate of market value and a handful of methods which can be employed, most based on accepted appraisal practice. One method would be to simply hire a Certified Appraiser to complete a “market value” appraisal of your home.  Appraisers will prepare market value appraisals and are bound by guidelines to use similar comparable properties which have sold in the past six months. A market value appraisal is just that: an estimate of what the property would fetch on the open market and this typically is the most applicable. Other types of appraisals include income valuations, which are generally used in income producing property and replacement cost, which is applicable for insurance valuation. To have an appraisal prepared you would contact a certified appraiser from the Appraisal Institute of Canada. Some homeowners base their value on their City Assessment and while this can provide a rough estimate, these values can range widely and should not be used as a reliable indicator or your current market value. City Assessments are based on a model of mass appraisal which estimates the broad value of your type of home based on similar homes in your surrounding area. The third method would be to use the services of an experienced Real Estate Agent to evaluate the market value. The advantage of this method is that while Appraisers are bound to use historical methods to estimate the value of your home at the present time, an agent can draw upon the same broad base of comparable sales and can extrapolate into the the future based on current market conditions. This is very important in a rapidly changing market (of rising or declining values) where  you need to know the value based on the intricacies of a complex local market which is in flux. Using this local and up to the minute intelligence, an experienced agent can ensure that you extract every dollar of value and don’t leave any money on the table in an increasing market. Similarly when the market is declining, a good Agent will provide knowledge that will place you ahead of the market and allow you to sell before the market declines.The disadvantage of using an agent is simply the nature of the industry where there are hundreds of agents with a variety of skill sets and competencies competing for your business. This makes it important that you use the most knowledgeable, experienced and trustworthy agent to ensure that the agent does not simply “buy your business” by giving you a favorable number that appeases you and then lets you down later when the market provides you the stark reality of your homes value. Sano Stante Real Estate  provides premium real estate service to discerning Calgary area clientele for over 30 years. If you are thinking of selling, call us to receive an expert market evaluation of your home.

WHAT TYPE OF FURNACE OR HOT WATER TANK SHOULD I INSTALL IN MY HOME?

  Many clients ask what type of furnace or HWT should I choose to replace my current heating appliance. In Calgary we typically assume gas service so although there are many types of furnaces and hot water tanks, gas appliances generally fall into the two broad categories of direct (sealed) vent or open combustion. Most furnaces and water tanks installed in the past 50 years were open combustion and they require two sources of air to be brought in from outside –  combustion air and fresh air (for the home). Recently the code changed so that only direct vent furnaces may be installed when replacing a furnace and for new construction. That’s good news because these furnaces operate at a higher efficiency of typically 85-95% compared to the older open combustion furnaces which operate around 65% efficiency. Theoretically you should automatically save 20% or more in efficiency by upgrading to a direct vent furnace, but it actually gets better. Because the new furnaces are direct vent, they eliminate the (usually 6″ vent) supply of cold outside air freely entering into the furnace room next to the furnace. Unless your furnace room is insulated and sealed from the balance of your home (and they rarely are) then this outside air infiltrates your home unabated. So a great benefit of updating to a direct vent furnace is the elimination of this combustion air that freely enters your home. You will still require a fresh air supply for the home fed into the furnace, but this directly enters your return air duct and becomes blended with heated air as it flows through your system, so it usually does not cause the nuisance of cold basement floors, etc. that the combustion air causes which is fed to the open furnace room. But what about the hot water tank? Good question, because unless your HWT (hot water tank) is also direct vent or electric, you will still be required to maintain that supply of fresh combustion air into the furnace room to service that appliance. If you are due to replace the HWT then seriously consider a direct vent or electric HWT as this will allow improved efficiency in the heating of your hot water while allowing the benefit of reducing cold air infiltration that we described above. Electric tanks are less popular locally because of the higher cost/btu of electricity, but the savings in heating and lesser cost of an electric tank could offset this. In fact many builders have reverted to incorporating electric tanks in their standard spec in Calgary. The range of selection for direct vent hot water appliances ranges from direct vent (40-75 gal) tanks to tank-less, instantaneous water heaters. There is much debate on which is the better option, but without going down that rabbit hole I suggest that if you decide on an instantaneous heater you should also couple it with a storage tank. Another important and often overlooked piece of equipment is the type of blower used in the furnace. There are two types of blower fans used in modern furnaces run from AC or DC electric motors. Newer model DC motors operate at 40 to 85% higher efficiency than conventional AC motors and operate at variable rates of speed. This more readily allows continuous operation of the fan to provide more comfortable air circulation in the home. DC fan motors are highly recommended and can make a significant difference in your monthly electrical bill, so if you are replacing your furnace you would be wise to ensure it is equipped with a DC motor. Aside from all the benefits mentioned above regarding cost savings the benefits of eliminating the combustion air extend to a more comfortable, draft free environment and the potential bonus of more room if this is coupled with removing the (brick or metal) chimney and chase. Of you plan to leave the chase intact perhaps it could serve as a mechanical chase for a future solar electric or solar hot water system. Additional benefits can also be derived from installing a good set back thermostat. Our current favorite is the NEST but the competition offers some great products that may be a better fit and the available choices increase every day. In any event, check with your contractor to ensure compatibility. With all the benefits discussed above, we hope that upgrading your furnace will be an easier decision, but if you have any questions don’t hesitate to call the team at Sano Stante Real Estate at 403-289-3435 or info@sanostante.com   

FIVE THINGS TO KNOW ABOUT CALGARY SECONDARY SUITE APPLICATIONS

YOUR PROPERTY The first thing you need to know before applying for a secondary suite re-designation is how your property is currently zoned. The city will accept re-designation applications (often called re-zoning) for any property but you’ll want to set yourself up for success by knowing the current zoning and what zoning you’re looking for. If you don’t know about the zoning, city hall will allow pre-application inquiries where you can find out more.  Call us if you would like some advice on Calgary zoning and re-designation for secondary suites. COST For re-designation applications in particular zones, the city may have an application fee, but check with the City of Calgary Planning to see if there are any current inducements: R-C1 to R-C1s R-1 to R-1s R-C1L to R-C1Ls Applications still go through the full re-designation process however the fee is waived. Don’t take this to mean that an ill-prepared application will be successful, this initiative is meant to encourage application where an owner might not otherwise risk the investment. TIMELINE Don’t underestimate the time it takes to collect all the required information, and the resulting re-designation process. It may take up to a month to assemble & submit your application, and expect the following rough timeline for the process to run its course: 1 month for internal review & follow-up questions; 2 week advertising period with “Re-Designation Application” sign on the property, with 2-3 additional weeks to receive public input; Administration presentation and review to Calgary Planning Commission at the next scheduled meeting; If approved at CPC, another 2 week advertising period with “Land Use Bylaw Amendment” sign on the property, with 2-3 weeks following to receive public input; Application presentation and review with Calgary City Council at the next scheduled public meeting. SUPPORT It will be important to demonstrate that you’ve made a concerted effort to contact and discuss your application with your neighbours. It’s been suggested that at a minimum you should contact any adjacent neighbours, and any directly across the street or alley.  I would suggest doubling or tripling that effort and requesting your neighbours sign a letter stating their name, address, and indicating support for your application. It wouldn’t hurt to show a summary on a map – who doesn’t love graphics! YOUR STORY When you present your application, keep in mind that there are many perspectives from which one might view the application. You can make your case from a planning, financial, personal, and/or social perspective. It may be wise to touch on all of these perspectives so your application appears complete and well thought out.  

KEY CONTRACTOR QUESTIONS TO ASK BEFORE HIRING

Here’s a few key contractor questions to ask and steps to follow before hiring a contractor of any type, including handymen: 1. Know specifically  what you want to have done. Try to have plans drawn up by an Architect or Designer. The more information you have available for the  contractor, the better. You should also be able to obtain a more precise quote for the work and be better able to compare at least two or three competitive quotes. 2. Try to get  personal referrals, rather than relying on the phone book or internet. Ask a  friend or a relative who has had some work done on their home – that’s a great starting point. You can get some honest feedback  about the contractor’s skill level, price, scheduling, level of cooperation,  and much more. There are a lot of contractors out there to choose from, and  like most businesses, they succeed or fail mostly by their reputation so a  good referral is very helpful. There are other sources of referrals as well. If you see  some work going on down the street, stop and talk to the homeowner. Most people  are more than willing to share their experiences – both good and bad – about  the contractor they’ve hired, and here again you can get some great firsthand  information. Material suppliers are also great sources. Ask the people  where you buy your lumber or your plumbing supplies if they know of anyone  who’s particularly good at the type of project you have in mind. Retailers have  a reputation to protect as well — they want to keep you happy and coming back  as a customer — so they will typically refer only those contractors who they know are honest and will do a quality job. Other good sources of referrals include real estate agents,  insurance agents, property managers, your utility company, and your local  building department inspector. 3. When you have a  referral or two, call the contractors to set up an appointment. Ask the  following four questions: Do they do the specific type of work you’re looking for? It could be they no longer do kitchens or room additions, or they now do remodeling and have stopped building new homes.  Clarify this on the first call. What is their schedule like? If you have a project that has to be done within the next month and the contractor can’t even start until then, there’s no point in wasting your  time or theirs. Can they provide you with referrals? Most companies are more than willing to provide you with names and phone numbers of past clients. If they can’t or won’t provide you with referrals, don’t hire them. Between the time you call the contractor and the time the contractor comes out, be sure to follow up on a couple of the referrals and get some feedback from the homeowners. If possible, see if the referral would allow you to view the contractor’s work in person. What is the contractor’s name and license number? Get the contractor’s full legal business name, address  and business phone number, as well as their contractor’s license number.  Follow up on this information, and verify that all of the proper bonds and insurance policies are in place (including workers compensation for their employees). At Sano Stante Real Estate we maintain a list of qualified contractors as a service to our clients to prepare their home for sale or to upgrade a home that they have just purchased. Please call us and we can provide you with a list of these proven trades.