Leslie Barr, a Certified Residential Appraiser and real estate sales representative, discussed the importance of investing in one’s home, especially the home’s envelope, to preserve the property and its equity. Barr said homeowners who are able can refinance their homes and use up to 80 per cent of the home’s equity for renovations or improvements.
“Homeowners really need to keep an eye on basic maintenance of their home,” said Barr.
“The most important component of any home is the envelope of the home, the siding, the roof, and the foundation.”
Barr described the various states of disrepair she has found homes in across the district.
“Often what I see when I go into homes as an appraiser, I’ll see the siding is falling off, or the roof is in such disrepair that there’s a lot of damage done to the interior of the home. So, if at all possible, I really think people need to look at what they have for equity in their homes and use it to their advantage,” said Barr.
“As an appraiser in this district, we do have a housing shortage. People are in need of homes and rental properties and so on and so forth. So, we do have a demand that we haven’t been able to meet. That’s why I think our prices really haven’t taken a big hit. They’re just kind of flattening out a little bit.”
With real estate prices plateauing, Barr suggested those able to consider renewing their mortgage to fulfill repairs or improvements to the property.
“I think the best option if you do have an existing mortgage, and you’ve been paying on that mortgage for a few years when it comes time for renewal it’s always a good idea to look at what equity you have in it,” said Barr.
“I get a lot of requests for an appraisal in a refinancing situation, for an individual that’s seeking refinancing with their lender of an existing mortgage. I go in, I do my assessments, I come back to my computer, I pull the sales data, and I see what the home is worth.”
Barr said this is often the most viable option for homeowners looking to do maintenance and improvements.
“That’s the most popular option for homeowners. I think it’s the most viable option because it’s probably going to be the least amount of interest that you’re going to be paying on an existing mortgage,” said Barr. “When people start going into a home equity line of credit and things like that, it’s a little bit higher interest rate, and you’re not allowed to take as much value out of the home usually. In a refinancing, a normal refinance, they can take up to 80% of the value of the home towards consolidating or home improvements, or whatever they plan to do with the money.”
Moreover, Barr suggested those interested should find a mortgage broker that will do “a lot of the leg work.”
“There are a lot of mortgage brokers out there that will do a lot of the leg work, and do a lot of shopping around for people to get them the lowest interest rate.”
