Unimor Capital Corporation

Tag: home

  • The 10 Best Organizational Tips

    The 10 Best Organizational Tips

    Getting your home organized can be very overwhelming. We don’t all have the time, patience, or dexterity to fold our shirts origami style or put our books in rainbow order and we can’t all live in a stoic concrete box like Kim Kardashian. Don’t get me wrong, I love a good pantry organizing TikTok as much as the next mom, but when it comes to organizing my home, I need a happy medium.

    If you’re not ready to go full Marie Kondo minimalist, fear not, I’m with you. I like order and organization, but you know what else? I like my stuff. In this post, I’m sharing the tips and products that have helped me make our home more organized and, most importantly, more functional.

    1. When in doubt, label it.
      If I had a dollar for every time I got asked, “Where is the [ITEM]?” or “Is this the right [ITEM]?” A label maker can help everyone find what they need, especially if you’ve removed items from their original packaging after watching one too many TikToks.
    1. Tackle the “junk drawer.”
      We’ve all got one. That drawer in the kitchen or office that just seems to be a magnet for anything and everything. But taking the time to organize it with some small bins or containers will make it much easier to navigate going forward.
    1. Invest in the right storage options.
      Walking into one of those organizational stores, I’ll always run the risk of blacking out and buying everything. Do I need to decant all of our cereal? No. But choosing the right options to store valuables like fine china, holiday decor or keepsakes is worth it. Measure your shelves and spaces before you go so you have an idea what will fit.
    1. Choose “functional” over “pretty.”
      If you spend hours, days or weeks making your home look pretty but then you can’t find anything, you’ve defeated the purpose. I’ll go back to the rainbow books option — it looks amazing, but I can’t always remember the color of that cookbook I need.
    1. Utilize dead spaces.
      There are probably lots of dead spaces in your home just begging to be used. Hang a shelf above a bathroom door for linens or tuck a rolling shelf between the refrigerator and the wall. Every bit of space can be utilized, you just have to get a little creative.
    1. Create zones.
      With so many of us working from home now, the areas of our home may be blurring together. That’s why it’s important to create work, dining, and hangout zones. Designate a zone for dropping bags and shoes and one for all of your home’s cleaning supplies.
    1. Think “up.”
      Get things off surfaces like countertops and the floor as much as you can. Hanging baskets, shelves and over-the-door organizers can help you lift the clutter away and to whomever created those sticky strips that don’t damage walls, I raise my glass to you.
    1. Keep the important things together.
      Essential items like keys, bills and other notices should always be easy for everyone to find. Choose a place you all pass by daily to keep the mail, hang a calendar for managing schedules and add a board for reminders and notes.
    1. Make your wardrobe visible.
      If you can’t see it, you probably won’t wear it. Spending the time to organize your closet will save you time and money down the road. Group like items together and think of a system that works for your lifestyle — if you pretty much always wear pants and a sweater during the week, put those items near each other. I also like to do a seasonal cleanout. Once a season has ended, if you haven’t worn something, it’s time for it to be donated or sold. One way to gauge what you’re actually wearing is to wrap an elastic around each hanger in your closet. Once you wear something, remove the elastic. Any elastics left at the end of the season will be easy to spot.
    1. Hide those cords.
      Exposed electric cords are like nails on a chalkboard for me. If I see one, I can’t stop staring at it. Cord hooks and management boxes can help you hide the clutter and be sure to use power strips with surge protectors when you can for added safety.

    ~ Kim Holderness

  • Fixed Rate vs Variable Rate Mortgages: Which Should You Choose?

    Fixed Rate vs Variable Rate Mortgages: Which Should You Choose?

    One of the biggest decisions you’ll face when getting a mortgage is whether to choose a fixed or variable rate mortgage. At the moment, it’s hard to go wrong with either one. After all, mortgage rates in Canada are at historic lows. But the type of mortgage rate you choose is something you should spend some time considering, as the best choice depends as much on your individual circumstances as it does on any economist’s interest rate outlook.

    What is a Variable Rate Mortgage?
    A variable-rate mortgage is a mortgage linked to the Bank of Canada Prime Lending Rate and fluctuates during the mortgage term. You can obtain an open or closed variable rate mortgage, but the most common term is a 5-year variable closed.

    For example, at the time of this writing, the Bank of Canada Prime rate is 2.45%. If a variable mortgage were priced at Prime -.90%, your interest rate would be 1.55%. If Prime were to increase by 0.25% to 2.70%, then your mortgage interest rate would rise accordingly to 1.80%. Even though variable mortgage rates fluctuate during the term, the monthly payment remains the same.

    What is a Fixed Mortgage Rate?
    A fixed mortgage rate stays fixed for the length of the mortgage term. It’s available in terms ranging from 6 months to 10 years, although the most popular term is a 5-year fixed rate. Unlike variable rates, which move with the Prime Lending Rate, fixed mortgage rates follow Canadian bond yields.

    Fixed rates are usually higher than variable rates, with the higher rate trade-off being cost certainty. Fixed-rate borrowers are willing to pay a premium to lock in their rate for a specific time period. Banks price fixed rates higher than variable rates because they present more risk to the mortgage lender due to the rate commitment made to the borrower.

    A History of Fixed vs. Variable Mortgage Rates
    If you look back at the past 20 years or so, variable mortgage rates have been consistently lower than fixed rates with only a couple of exceptions. This might make it seem like choosing a variable rate would be a no-brainer, but it’s not so clear-cut. At the moment, both types of mortgage rates are at historic lows, and the gap between them is very narrow. So, there are fewer savings to be had by going with a variable rate mortgage, while the risk of rising interest rates remains.

    Reasons to Choose a Fixed Mortgage Rate
    Here are three reasons why you might want to choose a fixed-rate mortgage:

    1. You expect interest rates to rise.
    While no one knows when the prime rate will rise and fall or by how much, the economy can provide signals that rates may be headed upwards or downwards. If you anticipate that mortgage rates may be on the way up and you can secure an attractive fixed-rate, all things being equal, it might be your best choice.

    2. You have limited budget flexibility.
    Perhaps you’re buying your first home, or your affordability has been stretched with the mortgage you’re taking on. If you lack the flexibility in your budget to handle a sudden increase in your mortgage payment, your best option is to choose the certainty of a fixed-rate mortgage.

    3. You are a risk-averse by nature.
    Regardless of your financial position, if you are risk-averse by nature and having a variable interest rate will cause you sleepless nights, it’s not worth the hassle. Go with the fixed-rate mortgage.

    Reasons to Choose a Variable Mortgage Rate
    Sometimes a fixed rate is the way to go. But here are four reasons why a variable mortgage might be the right choice:

    1. You expect interest rates to fall or remain flat.
    A variable-rate mortgage could be the best choice in a period of a stable or falling prime rate, even if it’s only slightly lower than the going fixed rate because the terms of a variable mortgage are generally more flexible than those of a fixed mortgage. (see #4)

    2. You have plenty of budget flexibility.
    The numbers don’t lie. Over the long term, you’ll be ahead of the game by choosing a variable rate. But there’s some risk involved. If your cash flow situation is good and you can withstand the potential of a sudden increase in your mortgage interest costs, a variable rate could be worth the risk.

    3. You are risk-tolerant by nature.
    If you are a person who can handle a fair amount of risk, then you probably have the fortitude to handle the potential ups and downs of a variable mortgage, all things being equal.

    4. You Plan to Sell Your House
    One of the biggest drawbacks of a fixed-term mortgage is the potential for astronomical penalties, should you decide or be forced to move in the middle of your mortgage term.

    Fixed-mortgages can be subject to something called an Interest Rate Differential charge or IRD. Variable mortgages are usually only subject to a more predictable 3-month interest penalty if the borrower breaks the mortgage early. So, if you think that you might move before the end of your mortgage term, the variable rate is probably a safer bet. You could opt for an open mortgage to avoid the penalty, but the interest rates will be far higher.

    How to Reduce Variable Rate Mortgage Risk
    If you opt for a variable rate, you are assuming some risk if interest rates rise suddenly in the middle of your term. Yes, there is the option of converting to a fixed rate, but that forces you to try and time the market, and that’s not likely to end in your favour.

    You can reduce the risk of a variable mortgage by increasing your monthly mortgage payment amount to match what you would be paying with a higher fixed rate. For example, let’s say you have a choice between a variable rate mortgage at 1.75% with a monthly payment of $1600 and a fixed-rate mortgage at 2.25% with a monthly payment of $1685.00.

    You could opt for the lower interest rate but increase your monthly payment to match the fixed-rate payment of $1685.00. This will increase the amount of money going towards your principal, increasing your interest savings, and providing you with a buffer should interest rates rise.

    The Bottom Line on Fixed vs. Variable Mortgage Rates
    There is no shortage of prognosticators ready to tell you that a fixed or variable rate is the best choice. They always seem to know what’s going to happen in the future. However, the truth is that no one knows exactly where interest rates are headed. There are far too many unknown variables that can alter the course of the economy. For example, how many rate forecasters saw COVID-19 coming at the outset of 2020.

    The bottom line is that choosing a fixed or variable rate has as much to do with your individual circumstances, such as your long-term plans, budget flexibility, and your personal risk tolerance level as it does with the cold hard numbers.

  • 6 Simple Rules of Decluttering

    6 Simple Rules of Decluttering

    When it comes to getting more organized, one of the key elements must be decluttering your life, home, and activity schedule.  However, the very idea of getting rid of personal possessions strikes fear into the hearts of many.  Do you feel this way?  As with any other process, it often helps to have some basic, simple to follow rules in place.  Consider these six rules of decluttering to help you take steps toward living a clutter-free life.

    1. Bring Less Home

    This is the most important rule to set before you even begin to purge items.  You need to determine and make a sincere effort to bring less stuff into your home.  There’s no point in putting forth the effort to declutter if you undo all your progress by buying more stuff.  Setting a mindset to shop with intention is the first step to clearing out the clutter for good. Remember, is this item you are about to purchase a need, or is it just a want?

    1. Document Your Nostalgia

    Nostalgia and memories are powerful emotions that can lead you to hold onto clutter. An effective compromise is to digitize your prized possessions.  You can scan the images of things like certificates or kids’ artwork into your computer and organize them into folders.  For three-dimensional pieces like trophies or prom dresses, take a photo of the item to add to your digital keepsakes.  Often, it’s the memory of the event attached to the item that holds the greatest nostalgia, not necessarily the physical item itself.

    1. Start Small & Simple

    One way to gain momentum in the declutter process is to start with the easy things.  Begin boxing up items that don’t hold much emotional attachment.  Doing so will lead to a sense of instant accomplishment and provide motivation for you to keep going.  Especially when the decision-making becomes tougher later.  This will be the motivation for cleaning the tougher areas of your home.  Start with doing a 15-minute session, as you clean an area, make your 3 piles: keep, give away or sell, garbage.  As you declutter, you can also ask yourself “why” you have kept this or that. This will help you in the future when you are tempted to bring other things home.  Remember the clutter didn’t appear overnight—so don’t beat yourself up over reversing the process.

    1. Lose the Duplicates

    Another relatively easy decluttering task involves getting rid of unnecessary duplicate items.  So, take a moment to go through your home and gather up all your duplicate articles of clothing, dish sets and books.  Then sort through them, keeping only your favorite colored piece or the one that is in the best condition.  You will free up space very quickly this way.  Remember, you don’t need to be a squirrel keeping piles of things everywhere.

    1. Ditch the Guilt

    An empowering decluttering strategy is to get rid of things you’ve been holding onto out of guilt.  It doesn’t matter how much you paid for that stylish coat if it’s not being used, and unwanted gifts are something else you should part with immediately.  The decision of whether to keep them is yours, so holding onto these items out of guilt is just weighing you down.

    1. Put Things in Their Place

    Another way to bring organization and order to your home is to make sure all your possessions have a designated place.  Once they have an assigned place, remember to always return them there.  Knowing where stuff belongs makes it easier to keep everything tidy and lowers the chance of clutter becoming a recurring problem.

    These 6 rules aren’t the definitive last word on clearing out the clutter in your life and home.  They also won’t remove all the difficulties from the process as you learn to part with items.  Hopefully, though, they will serve as guidelines to help you begin your own decluttering journey.

  • You Might Pay More Than Expected to Renew Your Mortgage…

    You Might Pay More Than Expected to Renew Your Mortgage…

    New accounting rules adopted by the banks mean they’re paying closer attention than ever before to your financial situation and your home’s value when you renew a mortgage. Mortgage renewals used to be utterly routine – a virtual rubber stamp. Now, if your credit score has taken a hit or your home has fallen in value, you might not qualify for the best available rates. The new accounting rules are called IFRS 9; IFRS stands for International Financial Reporting Standard. One effect of these rules is to cause banks to pay close attention to early warning signs that clients may run into trouble paying their mortgage.

    “Let’s say the bank has noticed that your credit score went from 750 to 580 and/or your loan-to-value ratio has gone way up,” said Robert McLister, founder of RateSpy.com. “Anything that worsens risk in a lender’s eyes is going to potentially warrant a higher rate at renewal.”

    Mortgage brokers estimate that anywhere from fewer than 5% to 15% of borrowers may be negatively affected by the new rules. The borrowers most vulnerable to getting an elevated mortgage rate are in expensive cities, such as Toronto and Vancouver, where young owners must juggle expensive mortgages and daycare if they have children. It’s difficult to track what banks are actually doing because there don’t yet appear to be any standardized policies. But mortgage brokers report that banks are in some cases doing soft credit checks, which means peeking at your credit file to see whether your credit score has worsened. Banks may also do appraisals on renewal to ensure that the ratio of the amount of your outstanding mortgage to the value of your home is declining as it should be.

    The risk of having to renew at higher rates just keeps growing for these and other lenders. Well-discounted five-year fixed-rate mortgages are close to one percentage point higher than they were last summer. Also, we’ve seen the emergence of a trend where mortgage rates today are higher for some people than others. For example, someone with a down payment of less than 20% now gets a rate that on average might be 0.35 of a point better than someone who puts down 20% or more. Below 20%, the borrower is required to pay for insurance that protects a lender against default.

    Mortgage stress tests for borrowers also influence rates. The stress tests are designed to see whether you can afford mortgage rates that are higher than current levels. If you’re renewing a mortgage and want to move to a new lender, you must be able to pass the stress test. If you can’t do that, you’re stuck with a current lender that has no need to offer you its best possible discount. Today’s reality of home ownership is that that those financial struggles of home ownership matter. If your credit score drops or your home falls in value, there can be consequences.

  • 10 Spring Cleaning Tips

    10 Spring Cleaning Tips

    As the days get brighter, you’ll see dust and dirt that went unnoticed during winter. Luckily the long spring evenings are perfect for an extra bit of cleaning, and our top 10 spring cleaning tips will help get you going.

    1. Declutter First

    Every six months or so, you should take some time to declutter your home. Before your spring clean is an ideal time for this job. Gather any old, unwanted or broken items such as clothes, bed linen, books, toys, ornaments, and even furniture. Sort everything into piles for recycling, charity and storage. You’ll feel great after this therapeutic exercise, and your home will already be looking tidier.

    1. Prepare Your Kit

    Before you get down and dirty, make sure you have all the cleaning supplies you will need on hand. Essentials include rubber gloves, cloths, sponges, brushes, bleach, all-purpose cleaner, furniture and glass polish, garbage bags and paper towels.

    1. Work from the Top Down

    Always clean from the ceiling to the floor; first tidying, then dusting along the ceiling, light fixtures, pictures, etc…, finally vacuuming and mopping the floor when everything else in the room is done. This just makes sense because the earlier jobs will of course dirty the floor. You may also find it makes your work seem that bit easier and more productive if you finish either the downstairs or the upstairs completely before starting the other.

    1. Leave Windows for a Cloudy Day

    Wait for a cloudy day to wash your windows, as direct sunlight can dry windows too quickly leaving streaks behind.

    1. Don’t Forget the Fridge

    The best time to take on the task of cleaning your fridge and freezer is right before you do your grocery shopping, when the contents are at their lowest. Take everything out and dispose of any items that have passed their use-by date, and almost-empty items that you will never use. Look out for opened jars and bottles which state on the label that they should be used within a certain number of days after opening. Wipe down the interior of the fridge with a damp cloth and disinfectant. The same can be done for food cupboards if you think it’s needed.

    1. Cleaning Curtains & Blinds

    Curtains and blinds are usually neglected in routine cleaning sessions but can collect a surprising amount of dust and dirt. Some curtains can be machine washed or dry cleaned; always check the care label and follow the instructions provided. Most vacuum cleaners come with a small nozzle with a short brush built-in that is ideal for vacuuming curtains and fabric blinds. Remember to vacuum both sides to remove as much of the dust as possible. Steam cleaners are ideal for giving curtains and fabric blinds the most thorough clean. Wooden, metal or plastic blinds only need to be wiped down with a dry cloth, or with a suitable cleaner.

    1. The Best Oven Cleaning Method

    The oven is the heart of the kitchen, but months of roasting and baking can make it grimy and smelly. Begin by removing all racks and placing them in a mixture of hot water and either oven cleaning solution or dishwashing liquid. Allow them to soak while you clean the inside of the oven with oven cleaner. Always follow the manufacturer’s instructions when using oven cleaner, as it contains powerful chemicals. Scrub the racks clean, rinse and dry. Make sure to clean off all cleaning chemicals from the oven walls and racks before using your oven again.

    1. Mattress Cleaning & Care

    Remove all bedding and use a vacuum cleaner to remove dust and hair that has accumulated over time. Spot clean any stains with a stain remover and damp cloth. Sprinkle a light layer of baking soda over the mattress and let it sit for at least a couple of hours. The soda will absorb any moisture and leave your mattress smelling fresh. Remove the baking soda with a thorough vacuuming. Every three months, flip your mattress and switch it from head to foot and vice-versa to help it wear evenly and prolong its lifespan.

    1. Freshen up Your Rugs

    For a beautifully fresh smelling home, it is important to think of things like rugs which can really hold onto odours if not cleaned once or twice a year. Hang your rugs out on a washing line and use the handle of a sweeping brush to beat them. This will remove the bulk of the debris, dirt and dust that gets embedded in the fabric. Take the rugs back inside for a good vacuuming to remove any fine dust, before applying a carpet shampoo to get them like new again.

    1. Delegate!

    There are some jobs where you can put your feet up and let someone else do the work, safe in the knowledge that you’re doing the right thing. Examples include window washing and chimney cleaning. Spring is the ideal time for both, and sometimes specialist equipment, experience and skill is needed to reach those upstairs windows or the chimney pot.

  • How to Make Smart Home Renovations

    How to Make Smart Home Renovations

    For a good ROI on your house consider this advice from the Canadian Appraisal Institute on how to make smart home renovations. It’s been said before: We are the generation of renovation. Ask any friend and I bet my lunch that almost all of them have either done or will be doing a renovation.

    There are two main reasons for renovating. The first is to improve your current home, based on your own personal needs (not wants, needs). This is the primary reason to justify expensive projects, such as adding a second-story addition, finishing the basement, or extending the kitchen. It’s a renovation that will require a lot of work, money, and inconvenience, but will allow you and your family to enjoy the home more fully in the up-coming years.

    The second reason people use to justify a renovation is that they are adding value to their home. This is a problem. Evidence shows that it’s a lot easier to justify spending money if you think you’re getting a rebate and convincing yourself that your $15,000 bathroom remodel will add $20,000 in value to your home is the psychological version of a rebate. The big problem with this is that people will then use these mental gymnastics to justify financing a renovation—and take on debt today, in order to increase your home’s value tomorrow is not financially savvy.

    For those savvy enough to understand that a home renovation isn’t an investment, here’s a few tips on how to plan a smart renovation. According to the Appraisal Institute of Canada (AIC) homeowners should follow these 4 general tips when renovating:

    #1. Choose improvements with long life expectancy

    These are the less-than-sexy remodel jobs, such as new roofing (every 15 to 25 years for asphalt tile), a new furnace (every 10 to 15 years), or a new A/C unit (every 10 to 15 years). These improvements can offer savings in the year of renovation and in the years to come. For instance, replacing all the windows in your home could cost $10,000 or more, but the AIC estimates that this renovation will provide a return on investment (ROI) between 50% and 75%. Since outdated or improperly working windows and doors are major contributors to a home’s energy loss—up to 20% by some estimates—repairing or replacing these features will provide immediate savings and will add value to your home.

    #2. Invest in modern updates, particularly in high traffic areas

    The kitchen and bathrooms are key areas that hold their value if the finishes are contemporary and neutral. However, an entire renovation isn’t always required. For instance, wooden kitchen cabinets can be easily updated by resurfacing the doors and changing the hardware. You can also modernize and update the look of your kitchen by changing the countertop and replacing lighting and plumbing fixtures.

    However, if your kitchen or bathroom layout just doesn’t work or your cabinets are beyond the point of resurfacing, it may be time to consider a full renovation. According to the AIC, you can expect a 75% to 100% ROI on a major kitchen remodel or extension.

    But I need to point out that even the most well-thought out and contemporary remodel today will look dated in 15 years, so don’t bank on a dollar-for-dollar return on your remodel budget if you don’t plan on selling for a few decades. Still, if you’re renovating with your own family in mind, you can develop a smart plan by asking for features that are easy to update when it comes time to sell. A good designer and contractor can easily help in this situation.

    #3. Don’t overlook (or underestimate) the more inexpensive remodel jobs

    The return on investment for a fresh coat of paint is up to 165%—the best ROI of any home improvement. Other smaller remodel updates that don’t break the bank include replacing the front door, updating the home’s lighting fixtures, and adding (or rejuvenating) landscaping.

    Inexpensive remodel jobs aren’t isolated to a few fixtures, either. Removing carpet and installing hardwood goes a long way to increasing your home’s appeal to potential buyers and according to the AIC, the ROI on floor upgrades ranges from 50% to 75%. That means if you spend $5,000 redoing your floors, you can expect to recoup anywhere from $2,500 to $3,800 of your costs.

    #4. Consider energy efficiency

    According to a variety of appraisal sources, energy efficient renovations are considered to have one of the highest paybacks, relative to cost.

    Percentage recovered upon resale:

    Kitchen upgrade:  75% – 100%
    Bathroom upgrade:  75% – 100%
    Interior painting:  50% – 100%
    Roof replacement:  50% – 80%
    Replace furnace/heating system:  50% – 80%
    Expansions (addition of rooms):  50% – 75%
    Doors and windows:  50% – 75%
    Deck:  50% – 75%
    Installation of hardwood floor:  50% – 75%
    Construction of a garage:  50% – 75%
    Fireplace (wood or gas):  50% – 75%
    Central air conditioning:  50% – 75%
    Finished basement:  50% – 75%
    Wood fence:  25% – 50%
    Cement driveway:  25% – 50%
    Landscaping:  25% – 50%
    Pool:  10% – 40%
    Skylights:  0% – 25%

  • Are You Ready for Homeownership?

    Are You Ready for Homeownership?

    Are you ready for homeownership? Is purchasing a home on your list of goals? If so, assess how close you are to making your real estate dreams come true. This basic, Yes/No quiz will tell you if you’re ready for homeownership.

    1. Are you familiar with the housing market in your preferred neighbourhood?
    Start perusing the real estate pages and Realtor.ca well in advance of your house-hunt, so you know what properties sell for. There’s nothing worse than meeting an agent, only to discover the average price of homes in your preferred community is double what you were hoping.

    2. Do you know how much you can afford to spend on your first home?
    You want to start your home search pre-approved for a mortgage. Find out ahead of time how much that mortgage will most likely be by using Genworth Canada’s How Much Can I Afford calculator which factors your income, debt and other expenses into mortgage and monthly payment amounts.

    3. Have you saved at least a 5% down payment towards your first home?
    The good news is you don’t need a sizeable down payment to buy your first home. Conventional mortgages require a down payment of 20% of the purchase price, but mortgage insurance, you can buy with as little as 5% down.

    4. Do you have regular income, whether you are salaried or self-employed?
    Conventional lenders favour borrowers with salaried income, but we recognize many Canadians are self-employed. We have many lenders that are geared towards self-employed borrowers. If you’ve got a two-year history of managing your credit and finances responsibly, you can qualify without traditional income verification.

    5. Have you got a handle on your consumer debt?
    If you’re carrying a high debt load, it could hinder your ability to meet your financial obligations as a homeowner. Your monthly debt repayments (housing, car, credit cards, lines of credit etc…) should not exceed 40% of your household’s gross monthly income. If you’re carrying more than that, be aggressive about paying it down so you’re set up for success when you do buy your first home.

    6. Do you have credit history?
    Lenders look at your credit history to determine if you’re a reliable borrower. Refraining from credit cards altogether is counter-productive. If you’re hoping to buy your first home this year, establish good credit history by acquiring a standard credit card. Use it for small purchases and pay off the full balance each month.

    7. Do you have a healthy credit score?
    Poor credit history makes it harder to get mortgage approval. Always meet your monthly minimum payments on time, but don’t stop there. Be aggressive about clearing your credit card debt, or at least bringing each credit card balance to under 35% of its credit limit. If you’re recovering from bankruptcy, apply for a secured card to help re-establish a pattern of responsible borrowing.

    Scoring:

    If you answered YES to 4 or more, you’re probably ready to start your home search! If you scored under 4, you may need a bit more time to prepare yourself for homeownership.

  • How Does an Appraiser Determine the Value of a Home?

    How Does an Appraiser Determine the Value of a Home?

    An appraiser will use a variety of methods to determine the fair market value of a property. The definition of market value is the highest price reasonably expected at any given time when an interest in land is sold by a willing seller to a willing buyer after adequate time and exposure to the market.

    Appraisers are specifically trained and have sufficient experience to develop a realistic opinion of the value of a property. There are three basic methods when determining the estimated value of your home:

    Cost Approach: This estimates the cost of building a new home identical to yours at current prices, subtracting accumulated depreciation and adding the estimated land value.

    Income Approach: This approach is for income-producing property and is based on the assumption that the current value is the income potential when the property is developed to its highest and best use. The net operating income from the property is capitalized into value by an appropriate method and rate.

    Direct Comparison Approach: This is based on the idea that an informed purchaser would pay the same price for acquiring another existing and equivalent property. The estimated value is based on the selling price and listings of comparable properties in the area.

    The appraiser uses the most appropriate approach and supports the evaluation with the most reliable, factual and relevant market data. At times it’s advantageous for a buyer or a seller to get an independent appraisal to determine the value of the property. This will ensure you’re not paying too much or, if you are a seller, that the listing price is in line with the market.