Keystone Blog

The appraisal is more than just a physical inspection of a property itself. Every appraisal will consider the impact the neighbourhood has on value. From zoning, or lack thereof, to the official community plan, to condition, age, maintenance and use of neighbouring properties, amenities, services, etc. - it all has an effect of value. You may find that perfect home but if it is next to intolerable neighbours or conditions, it may lose its appeal very quickly and also possibly the long term effect on value.

Before buying, it is wise to reflect on lifestyle, what is important to you/your family in location and add it to your Home Buyer Checklist. Consider such things as:

· what services are important;
· is safety an issue, do you want sidewalks and well-lit streets and alleys;
· traffic volume;
· services and utilities;
· do you require public transportation;
· proximity to schools, parks, work; amenities such as shopping, services, organizations;
· do you want to be downtown or in the suburbs;
· what makes you feel emotionally secure.

Once you have developed you Neighbourhood Check List, it is important to investigate neighbourhoods by:

· driving around to get a feel and see what it offers;
· look at the houses, are they well maintained
· are the yards maintained;
· are there bars on the windows;
· talk with people within the neighbourhood, the school principal;
· make a visit to the local city hall or village office or Regional District to check out land uses and regulations;
· If you are working with a realtor I would suggest that you discuss the importance of the neighbourhood to you. A good local realtor will know zoning, the official community plan, whether the neighbourhood is in transition, and most things that will add or detract to the neighbourhood in consideration of all your wants and needs, etc.; help put things in perspective, all the while considering your budget.

For example, you may desire that rural acreage fronting the quiet, peaceful river; a place to come home to and unwind or contemplate the day with your morning coffee. However, your budget may not afford this dream but a treed property at the end of the cul-de-sac with a riverfront view may satisfy your desires and budget.

Here is a link to the Homebuyer’s Checklist on my website. Feel free to use it. If you would like to see other things added to it, let me know, we are always looking for ways to improve our services.

There have been a couple of recent lawsuits that raise intriguing questions and discussion about obligations of both neighbours and sellers and should have the real estate world a “twitter”.

The first one is right here in the Kootenays; a popular swimming hole located on the Goat River. The activities and behavior of the user’s impede on the quiet enjoyment of the adjoining property owner. The owner is suing the provincial government who own the right of way to the river. BC Supreme Court Justice Mark McEwan says that “It (government) flatly submits that it is a valid exercise of public policy to allow public access to water on government held rights-of-way and to then take no interest when there is wholesale abuse of the privilege,”. Justice McEwan is giving the province the summer to determine a remedy. The court will reconvene this September whereby the success of the provinces remedy will be assessed and a financial award to the neighbours determined. Here is a link to a news article if you would like to read more about it.

“Under the doctrine of caveat emptor, the buyer could not recover from the seller for defects on the property that rendered the property unfit for ordinary purposes. The only exception was if the seller actively concealed latent defects or otherwise made material misrepresentations amounting to fraud.”

A couple, with two young children, had decided to relocate from Toronto to Bracebridge, Ontario. After purchasing, they found out from a neighbour, that the owner across the street had been found guilty of child pornography. Everyone in the neighbourhood, including the sellers, knew about it. The argument by the purchasers is that the presence of a neighbour, with a sex-offending past, is a hidden defect.

The house has since been put on the market with disclosure as to the neighbour’s past. There is currently an offer, but at a loss, which they hope to recoup in the lawsuit. Tom Blackwell, National Post wrote a good article on the case. Click here to read it.

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