INSIDER WAYNE COCHRANE’S REAL ESTATE

JULY 2013

Your Neighbourhood Real Estate Professional

Wayne Cochrane...www.mooving.ca

1168 Dalhousie

Street - $674,800

Cape Cod, 3 bed +2 baths

Inside this Issue:

Are You Ready For Home Ownership? 5 Signs It’s Time

Why Do-It-Yourself Real Estate Isn’t Wise

Home Warranties Useful For Some, Not All

Low-Ball Movers Put The Moves On Unsuspecting Consumers

Smooth Moves Prevent Identity Theft

Owning A Home Makes Families Happier, Healthier

Inside this Issue:

Are You Ready For Home Ownership? 5 Signs It’s Time

Why Do-It-Yourself Real Estate Isn’t Wise

Home Warranties Useful For Some, Not All

Low-Ball Movers Put The Moves On Unsuspecting Consumers

Smooth Moves Prevent Identity Theft

Owning A Home Makes Families Happier, Healthier

You think that you're ready to buy a home, but how can you be sure? The thought of owning a home is an exciting one, yet not everyone is ready. If you've been considering purchasing your first house, here are five signs that you're ready to take the plunge into home ownership:

1.You Stick to a Budget

Financial experts will tell you that creating and sticking to a budget is a sign of financial maturity. If you have already created a budget and have stuck to it, you're more ready than the next guy to own your own home. When you follow a budget, you know exactly where your money is going each month. When you know where your money is going, you know whether or not you can afford a home of your own.

2.You Have a Down Payment

The old rule of thumb still stands: Enough money should be saved for a 20 percent down payment on a house. When you put 20 percent down on a home, you immediately have equity built into the property and you negate the necessity of private mortgage insurance. Even with a 20 percent down payment, you should still stay away from home's that are out of your

realistic price range. If you've budgeted for a $150,000 house, having 20 percent to put down doesn't mean that you should look for an $180,000 home.

3.Your Income is Stable

Finding a stable job can be tough to do in today's economy, but if you have a stable source of income, you can feel relatively safe making an investment in a home. If you are reliably employed, don't forget to factor in any life-changes that may crop up in the near or distant future. Do you plan to go back to school? Are you going to start a family? Budget for the home you can afford five years from now, not the one you can afford today.

4.Your Credit Score is High

The higher your credit score, the better your interest rate will be. The better your credit score, the more likely you are to be accepted for a loan. If your credit is in excellent shape, you're ready to buy a home. If, on the other hand, your credit needs some work, whip it into shape before you being the home-buying process. Before you buy a house, your debts should be paid off, any

Are You Really Ready For Home Ownership? 5 Signs It’s Time Written by Robin Wright

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Condominiums and

Townhouses on the Halifax Common

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JULY ISSUE

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collections accounts should be closed satisfactorily, and your credit score should be in the 700's.

5.You Have an Emergency Account

Did you know that you should have enough money in the bank to cover at least three month worth of debt? If you have an emergency account, you can feel safe buying a home. Add your estimated mortgage payment, estimated utilities, and any recurring debts that you have, and multiply that number by three. The resultant number is the amount that you should have stashed away in the case of job loss, illness or other financial emergency.

If you are thinking of buying a home, make sure that you are 100 percent ready. Re-read the tips above and, if they apply to you, the dream of owning your own home is within reach. If one or more doesn't apply to you, you have some work to do. Owning a home isn't a snap decision, it's a process. In the end, you'll be glad that you took your time and did it right.

Written by Robin Wright

I am all for do-it-yourself projects. If you can save a little money and learn how to do something that will be a useful skill in the future... I say, go for it! But not all projects should be tossed into the pool of do-it-yourself (DIY) tasks.

There are a number of reasons why some DIY projects turn into a nightmare that results in more time, energy, and money spent trying to clean up the mess than if you'd hired a professional in the first place. As a business owner of a video production company, I've seen this happen too many times. Professionals who work in specialized fields are used to doing their jobs. They can create a video, for instance, quickly and efficiently whereas a novice might take months to get it done and then it looks like amateur work. That can mean lost time, money, and, in the end, the main gain is tons of frustration.

This same idea is why DIY real estate isn't likely to be a wise choice for most people. Shopping for a home or selling a home requires a good amount of knowledge about the i ndus t r y , t he ne ighborhood , marketing, negotiation, home staging, and more. Most consumers simply don't have all those skills and when it comes to buying or selling their own home, whatever skills they have can be compromised because personal emotions get involved.

A common mistake DIY (or for-sale-by-owners) sellers make is pricing their homes too high. Often sellers look at how much they owe on their homes and try to work backward from there to determine a price. The problem with that is, the buyer isn't concerned with how much the seller owes. The buyer is comparing the home to those in the neighborhood. But often cash-strapped sellers are looking to make a bit more so they may try to push the price higher in hopes of creating more cash flow.

Listing a home for more than its competitive value can prove to be very unsuccessful. A lot of times, an overpriced home will get very few showings. The longer it sits on the market, the more "stale" it gets. When buyers and their agents see this, they often know to play the waiting game and let the humble fall begin for the seller. Eventually, there will be price reductions. How quickly this happens will depend on how motivated the seller is to close on the home.

Another reason hiring a professional real estate agent to handle your real estate transactions is smart is that it gives you an ally and someone to answer your questions. These days, real estate paperwork is getting more complicated and plentiful. When you attempt to go it alone, you're taking on a lot of responsibility and risking making some very big and potentially costly mistakes.

Why Do-It-Yourself Real Estate Isn’t Wise Written by Phoebe Chungchua

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Give me a call...

Wayne Cochrane EXIT Realty Metro

wayne@mooving.ca (902) 830-4761

WAYNE COCHRANE’S REAL ESTATE INSIDER

I always recommend getting a firm understanding and education about any project you're working on even if experts are hired. For instance, I had a water pressure plumbing is-sue recently and learned that even our own city officials didn't com-pletely understand the plumbing solution that was needed. By talking with experts and doing some re-search, I may have saved myself from some even bigger plumbing issues down the road. But I didn't tackle this problem alone... I hired experts who had the job done in a few hours. The difference was not only receiving peace of mind but also quality care and expertise. A home is a major purchase/sale. Choose wisely how you proceed through the transaction.

Written by Phoebe Chongchua

Home Warranties Useful For Some, Not All Written by Broderick Perkins

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JULY ISSUE

Home warranties for resale homes are on the rise as the housing market recovers and more homes hit the mar-ket for sale.

So says the Service Contract Industry Council (SCIC), a trade group com-prised of most of the nation's home warranty purveyors.

"Securing your home with an ex-tended warranty is a great way to set yourself apart from other sellers," said Tim Meenan, SCIC's executive direc-tor.

"Buyers seek out homes that are cov-ered by an extended warranty be-cause it can potentially save them thousands of dollars in post-sale home repairs."

But there are two sides to the story.

Home warranty pros

The council says sellers get an edge by attracting cash-drained buyers who can use the warranties to save on both the fear of and cost of some un-expected repairs on major appliances; electrical wiring; plumbing; water heater, and (HVAC) heating and air conditioning systems.

The council also claims the contracts can help boost the sales price. Homes with warranties return a sales price that is 3 percent higher, on average, than homes without the contracts, the council says.

"Offering a home that is under war-ranty sends a message to prospective buyers," Meenan said.

"It says that you care about the prod-uct you are selling and that the buyer can have confidence in what they are buying," he adds.

Chances are, however, unless you are selling a distressed property or fixer upper, you may not need to

shoulder the extra selling cost burden of a home warranty - $400 to $500.

Today's housing market demand ex-ceeds the supply by a wide margin and in most cases a warranty won't make the difference between a sale and no sale.

The housing downturn also left buyers wary and skeptical. A home warranty could send the wrong message - that something is wrong with the home.

Home warranty cons

Consumer Reports and other critics say the $400 to $500 annual cost of home warranty could be better spent on an interest-bearing, home-maintenance savings account.

Not to be confused with homeowners insurance, an annual home warranty covers the repair or replacement of major appliances, due to normal wear and tear. Pre-existing conditions and improper installation generally aren't covered.

The warrant company gets to decide if the condition was pre-existing or is covered. It also determines if some-thing will be repaired or replaced.

Some 32 states require home-warranty company licensing to help ensure that contracts are honored if the company fails. If you live in a state without licensing, proceed at your own risk.

Read the small print

Consumer Reports says the warranty company contracts with local service companies, which means you can't choose your own. Most companies have a 24-hour call service to handle requests. Covered service calls aver-age about $65.

However, if a company you need doesn't offer emergency service and you call another company, you might not be reimbursed for work com-pleted.

"Peace of mind isn't worth the price. The exception: someone who's selling a house and wants to boost the buyer's confidence," Consumer Re-ports advises.

Again, that could backfire.

Also, if the home comes with newer major appliances that are still under warranty, a home warranty is unnec-essary.

If you do buy a home warranty-covered home, just make sure the warranty is fully paid and read the contract.

The council says many companies offer coverage regardless of age, make or model.

However, take time to understand your responsibilities and the contract's limitations (say for older systems), caps and exclusions and check on the contractors the company uses, Con-sumer Reports says.

Written by Broderick Perkins

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Page 5

How Many Points Did Wayne Gretzky Score In His Career?

Word Scramble:(hint:person)

DARB DRAMANCH

Go to www.mooving.ca - ‘About Wayne’ and click on ‘Monthly Newsletter Trivia’ for the answers.

Brain Teasers

Low–Ball Movers Put The Moves On Unsuspecting Consumers

Last year, the Better Business Bu-reau (BBB) in the U.S. and Canada reported more than 8,500 complaints about movers including lost stolen or damaged possessions and late deliv-eries..

But the mother-of-all-slick-moves prompted New Jersey and Massa-chusetts to go after companies that low-balled estimates and then in-flated the fees, after the truck was loaded.

The companies held the possessions hostage and threatened to auction off the goods unless the customers came up with the ransom.You'll have to be quick on your feet to avoid some of the moves miscreant mov-ers will try to put on you.

Consumer Reports (CR) says hiring a moving company can be compli-cated. Like buying a home or apply-ing for a mortgage, it's not something most people do more than a few times in a lifetime.

CR, the independent, respected rater of goods and services, offers a few moves you can use to keep low-ball movers from putting you behind the eight ball.

Get recommendations - Avoid news-paper, phone book, and online ads for the names of movers. Get recom-mendations from family, friends, co-workers, real estate agents and other professionals you trust. Try to get referrals from those who've recently experienced a successful move.

Get estimates from at least three companies. Move away from movers that can't provide an address or li-censing information. Ask if they have marked trucks. Use a mover with a marked truck. It's a proud company

that has nothing to hide.

Get detailed estimates in writing. Do not hire a company that insists on phoned, emailed or online estimates. Likewise, dump movers who demand a large deposit. You aren't their gasoline provider.

Get the goods on the mover - Be skeptical even about well-known consumer service web sites boasting how well they background check companies. Consumer Reports said New Jersey officials recently an-nounced the results of a sting opera-tion that netted 25 unlicensed moving companies with listings on Craigslist and, believe it or not, Angie's List among other websites.

Several movers had outstanding warrants and U.S. Immigration and Customs Enforcement (ICE) wanted two of them.

Interstate movers are licensed by the Federal Motor Carrier Safety Admini-stration (FMCSA). FMCSA also of-fers online information on how to screen movers, CR says.The site also has a list of state regulators who oversee in-state movers.

Go looking for trouble - Along with licensing information, the federal website and some state sites list complaints against movers. Also check the BBB (bbb.org).

Give each company you are consid-ering a Yelp!. Seek online reviews. Also search online for complaint fo-rums and websites that name moving companies.

Weigh the reviews carefully. Even licensed companies can have a bad day. Look for a trend, a string of bad

days or other tell-tale reviews that indicate a pattern – good or bad.

Know your rights - The federal gov-ernment and some states require that movers provide booklets explain-ing your rights. The federal "Your Rights and Responsibilities When You Move" doesn't apply to in-state movers, but it's a smart move to read it even if you are moving within state.

CR says the moving industry's trade group, the American Moving & Stor-age Association's, also offers con-sumer information online.

Make a move against errant movers - When problems occur after the move, say, items are missing or damaged, contact the mover immedi-ately. You should have a copy of the company's complaints and inquiries procedures.

CR says, if you think you've been defrauded or if you believe the mover broke the law, contact your state attorney general, your consumer protection agency or the licensing agency. You won't know if a mover breaks a law if you don't know the law. Also, if you think the mover is illegally holding your possessions and trying to rip you off, contact the police.

Small Claims Court isn't out of the question. If necessary, send your mover a demand letter with your complaint, what you are seeking and your intent to sue.

Cooler heads prevail. Always keep your emotions in check, but be reso-lute.

Moving can be an overwhelming and distracting experience that creates opportunities for enterprising criminals to make you a victim of identity theft.

By the way, when someone steals your identity, you don't wander around like some Jane or John Doe in a state of amnesia. Identity (ID) theft occurs with someone steals your personal information and uses it to access your financial accounts.

However, to avoid becoming an ID theft target during the shuffle of a move, you should remember to follow these steps from Experian's ProtectMyID web site.

Moving away from identity theft

Change your address with all the companies, financial institutions, magazines, and other organizations that regularly send you mail. Identity theft is often carried out by stealing mail. People who move into your old residence might not steal your identity, but they won't shred or carefully discard your mail as you would.

Change your address with the Postal Service. You can even choose the date you want the change to take effect, so feel free to do this task early and cross it off your list.

Shed and shred. Moving creates a good opportunity to get rid of things you no longer need, including old documents. Don't just throw them away. Shred sensitive personal documents you don't need to keep.

Keep physical tabs on your identity. Regardless of whether you move yourself or use a moving company, keep your important documents with you in a secured place. A filing cabinet in a trailer isn't secure from identity theft.

Always keep the security of your identity in mind. Hire only a reputable moving company. After all, you are inviting strangers into your home. If your movers are going to pack your belongings for you, secure your important documents prior to their arrival to prevent identity theft.

Manage your technology inventory closely. Many households now include multiple computers, mobile phones, tablets, and other devices storing sensitive information. It would be easy for one to be inadvertent ly misplaced, or purposely stolen.

Make sure your devices are securely packed in unmarked packaging, and that they are locked with strong passwords that prevent identity theft. Don't put them in the moving van.

Written by Realty Times Staff

Smooth Moves Prevent Identity Theft By The Realty Times Staff

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JULY ISSUE

There are lots of reasons why Canada's homeownership rate is one of the highest in the world, at about 70 per cent. The best reason is because owning a home makes families happier and healthier and in most cases, more financially secure.

The latest research into the benefits of home ownersh ip was recent ly completed by Canada Mortgage and Housing Corp. (CMHC), which worked with Habitat for Humanity to see how the lives of Habitat families changed after they purchased and moved into their homes.

Habitat for Humanity, formed in Canada in 1985, has 69 affiliates across Canada and has helped more than 2,200 low- and moderate-income families to buy a home. The homes are built with donated materials and volunteer labour. Habitat homeowners must agree to contribute 500 hours of "sweat equity" towards the purchase of the home.

The houses have affordable, interest-free loans with no down payment. Monthly mortgage payments are based on 25 to 30 per cent of the owner's gross monthly household income.

The 2012 study asked Habitat families from across the country about how their lives have changed since moving into their homes.

Eighty-nine per cent said their family lives have improved since they moved, and 86 per cent said they are happier.

Eighty per cent of the families had school-age children. Most said the children had increased confidence, improved behaviour, higher grades and increased enjoyment of school since moving into the home. The children now participate more in activities outside of school including sports, music and arts and volunteering.

"A major finding from the survey was the

improvement in children's school performance and well-being since moving into their Habitat home," says the survey. "To the extent that these improvements would not have occurred without moving into a Habitat home, this outcome would represent a major and long-term social benefit," the survey says.

More than three-quarters of those surveyed said their health was better than it had been in their previous housing. Most of them previously lived in rental housing and many said their former homes were overcrowded and needed repairs.

The homeowners reported fewer illnesses caused by colds, flu, allergies, asthma symptoms and stress. Thirty-one per cent said they visited the doctor less frequently now than before they moved into their new home, and about 25 per cent said they missed fewer days at work because of illness.

"Some homebuyers also commented that their previous housing had issues with mould, humidity and poor heating systems," says the report by project manager Judith Binder. "Research has shown that these factors contribute to specific health problems. Therefore, some of the health outcomes reported are likely related to the better condition of Habitat homes."

Fifty-eight per cent of the homeowners said they are better off financially now than before they moved, even though the majority say that their overall housing costs have increased. Only 12.5 per cent said they are "worse off" than previously. Almost half said they had more control over their finances now, and that they no longer had to worry about unpredictable rent increases. More than 62 per cent said they were now building equity in their homes, citing this as a major benefit of homeownership.

Owning A Home Makes Families Happier, Healthier Written by Jim Adair

Page 7

Asked to assess the benefits and disadvantages of buying their new home, the homeowners ranked "ability to make it on your own", a sense of stability and having a home in better condition as the top features. Being able to build equity, having more room and having a backyard were also top vote-getters.

The most-mentioned disadvantage, which was mentioned by 28 per cent of the homebuyers, is the responsibility for maintenance of the home. Nineteen per cent say the responsibility for buying property insurance and paying property taxes is a disadvantage.

"Cramped quarters, unhealthy e n v i r o n m e n t s , u n s a f e neighbourhoods – low-income Canadian families often face challenges in obtaining housing that meets their needs," says Kevin Marshman, president and CEO of Habitat for Humanity Canada. "The families who partner with Habitat are able to remove themselves from these difficult situations, build equity for their futures and begin living healthier, happier and more productive lives."

The CMHC study's conclusions coincide with a recent publication by the U.S.-based National Association of Realtors (NAR). Social Benefits of Homeownership and Stable Housing, says, "There is evidence from numerous studies that attest to the benefits (of homeownership) accruing to many segments of society. Homeo wner sh ip boos t s t he educational performance of children, induces higher participation in civic and volunteering activity, improves health care outcomes, lowers crime ra tes and l essens we l fa re dependency."

Written by Jim Adair

WAYNE COCHRANE’S REAL ESTATE INSIDER

WAYNE COCHRANE’S REAL ESTATE INSIDER

Note: This is not intended to solicit clients currently under contract.

The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.

Page 8

Wayne Cochrane Real Estate Professional

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More homes listed and sold by Wayne - view these homes at:

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252 Springfield Lake Rd

Halifax

2362 June Street

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291 St. George Blvd.

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$538,900 Halifax

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