Halloween is here and the urge to uncover the paranormal is stronger than ever. Canada is no stranger to spooks, ghosts and apparitions, as these real life haunted houses will show.

The Customs House (Hamilton, Ontario) This Victorian era House is a testament to classical architecture and has been used for a variety of purposes since being built in 1860. The building is also home to a mysterious “Woman in Black” whose image has appeared before many visitors over the last century and a half. Along with the ghostly apparition, many residents have reported hearing disembodied voices, feeling unexplained drops in temperature and finding locked doors forced open. The House is now used by the Ontario Workers Arts and Heritage Centre (OWAHC), who recognize the importance that the “Woman in Black” has on Ontario’s heritage, as reports of strange activity continue.

Hycroft Mansion (Vancouver, B.C.) The former home of General Alexander Duncan McRae, this impressive mansion is also the reported home of several ghosts, many who allegedly appear in WW1 uniforms. Residents and visitors alike have reported hearing strange crying sounds from the mansion’s halls. The house is currently owned by the University’s Women’s Club and appropriately hosts many crews filming science fiction shows like The X-Files.

Madison’s Haunted Inn (Kincardine, Ontario) Built in 1858, this historic house had been a site of recurrent tragedy for its original owners, the Gentle family. Nearly all the family members died from falls, illness and suicide inside the home. It is said the family still haunts the halls as visitors at the Inn report seeing dark figures and hearing strange voices. The Madison Haunted Inn is a popular tourist attraction, welcoming brave souls to take tours of the rooms or even spend the night there.

Ceperley House (Burnaby, B.C.) Now an art gallery, it is said that the house’s original owner Grace Ceperley still stalks the halls, unable to rest in peace. Legend has it that Mrs. Ceperley wanted the sale of the house to go to charity after her death. Her widower however did not see to this and profited personally from the sale.

Dundurn Castle (Hamilton, Ontario) Another historical site in Hamilton, The Dundurn House is home to many sightings over 100 years, including moving objects, strange breezes and the appearance of figures floating across the halls. The surrounding area had been the site of many hangings and the isolation of cholera victims leading believers to pinpoint Dundurn as a haven for disgruntled spirits.

We at Text4Homes hope you’ve enjoyed this short list of real Canadian haunted homes. And don’t forget: if you’re in the market to buy real estate in Canada, make certain you find out if the house is haunted first - it might be real hard to sell it afterwards!

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There are real estate horror stories, such as the one recounted in “The Tale of Two Mortgages” and those that Jerry Fowler share in his real estate horror collection, and then there are Spooky Halloween Real Estate Stories.

Here are several spine-tingling tales from British Columbia real estate agents to keep you amused (or frightened?) until the big BOO night.

Courtesy of CBC:

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Our dollar is doing well and the Canadian Real Estate market is booming. Knowing intuitively that things tend to balance themselves out, and that the U.S. Real Estate was doing well before crashing, well, it’s hard not to worry a bit. Are we safe from incurring the same subprime mortgage meltdown fate as the US?

According to Linda Mitchell in last Thursday’s Toronto Metro, the answer is a hearty, “highly unlikely”. The Canadian Real Estate market is protected by our hefty industry regulations.

First, subprime mortgages are rare in Canada. They are “unconventional mortgages offered for a limited time at rates below prime, after which they jump to higher than prime”. They are for people who are considered `high risk’ to most conventional lenders, like banks.

What happened in the U.S.:

• Lax regulations resulted in 20% of all mortgages were subprime in 2007 compared to our 5% here in Canada.
• U.S. subprime-focused companies lent more than the value of the house – they convinced subprime borrowers that when interest rates jumped, their home would also have increased in value so they could refinance.
• U.S. housing prices started to fall and mortgage interest rates skyrocketed into the double digits.
• The 2007 subprime mortgage financial crisis: borrowers couldn’t pay, foreclosures and mortgage delinquencies abounded, and subprime mortgage lenders lost their shirts.

In Canada, most of our lending stays within prime. The few mortgages that are a gamble, “considered high-ratio, or obtained with less than 20 per cent down,” must be backed up with mortgage insurance, like the type offered by CMHC. In addition, we cannot finance more than 100% of our Canadian real estate value.

What does this all mean to Canadians who have a little extra money? That the Canadian real estate market is a fairly good bet and now is a great time to buy or sell a house, condo or commercial property.

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Liam and Judy got themselves into a pickle. They needed to relocate for Liam’s job and decided to buy real estate in Ottawa first, then put up their Toronto home for sale.

They made this decision based on the fact that the company was offering to cover moving expenses only. The couple did not want to incur the costs of renting an apartment in Ottawa for Liam while Judy was still in Toronto, selling their home and tying up loose ends.

Since they both had some real estate experience, they decided to perform their real estate transactions on their own. They did not hire or consult a real estate agent but they did conduct some initial real estate market research at the beginning of their adventure.

Liam and Judy chose to pay a little more than what they would have liked for their Ottawa house because of the closing date and a few extras the owners were willing to throw in. Plus, the housing market was at a prime point in its cycle. Based on their research, they were positive that they would not only make money off their Toronto real estate, but also sell it in no time.

Things were going well, the Ottawa property closed without a hitch and they moved the furniture they were keeping to the new house. They found a buyer for their Toronto property and started the transaction. One week before closing though, the buyer made a major purchase which affected his credit. His lender withdrew the mortgage loan, leaving Liam and Judy with two properties.

Eight months later, Liam and Judy are still paying two mortgages. Their relationship is strained because of the distance and their rapidly deteriorating financial situation. No one seems to be biting at their asking price. They have since hired a real estate agent, hoping to offset the horror of dealing with two mortgages.

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This is an important question whether you are buying a new home and want to make sure you’re not overpaying, or preparing to sell real estate and want to increase the value of your property. If you remember, we addressed this subject in an earlier post, “Do Home Improvements Really Increase Property Value?” which led us to determine that you will never recoup all your expenses for home improvements.

If you still have doubt (or just want to hang onto the belief so you have a good excuse to rebuild your kitchen), styleathome.com has settled the argument in their article, “Return on Renovation Costs: How much will you get back?”

Gathered from the Appraisal Institute of Canada, the following is a list of renovations and their worth upon resale:

Kitchen upgrade: 75% to 100%
Bathroom upgrade: 75% to 100%
Interior painting: 50% to 100%
Roof replacement: 50% to 80%
Replacement of furnace or heating system: 50% to 80%
Expansion (addition of family room): 50% to 75%
Doors and windows: 50% to 75%
Deck: 50% to 75%
Installation of hardwood floor: 50% to 75%
Construction of a garage: 50% to 75%
Fireplace (wood or gas) 50% to 75%
Central air conditioning: 50% to 75%
Finished basement: 50% to 75%
Wood fence: 25% to 50%
Interlocking paving stones on driveway: 25% to 50%
Landscaping: 25% to 50%
Asphalt driveway: 20% to 50%
Pool: 10% to 40%
Skylights: 0% to 25% Percentage recovered upon resale
Kitchen upgrade: 75% to 100%
Bathroom upgrade: 75% to 100%
Interior painting: 50% to 100%
Roof replacement: 50% to 80%
Replacement of furnace or heating system: 50% to 80%
Expansion (addition of family room): 50% to 75%
Doors and windows: 50% to 75%
Deck: 50% to 75%
Installation of hardwood floor: 50% to 75%
Construction of a garage: 50% to 75%
Fireplace (wood or gas) 50% to 75%
Central air conditioning: 50% to 75%
Finished basement: 50% to 75%
Wood fence: 25% to 50%
Interlocking paving stones on driveway: 25% to 50%
Landscaping: 25% to 50%
Asphalt driveway: 20% to 50%
Pool: 10% to 40%
Skylights: 0% to 25%

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The following is a selection of the most popular beliefs concerning the real estate market. Gathered from various North American real estate professionals, these myths are debunked and explained for you to help in your real estate pursuits.

Are any of these assumptions stopping you from buying or selling real estate?

For Real Estate Buyers:

1. You won’t qualify for a mortgage if you have a low credit score.

Most Canadian lenders use a proprietary Automated Mortgage Underwriting System (AUS). Borrowers submit information about income, assets and equity for the down payment. Many lenders will work with borrowers to get an approval by resubmitting applications after slight modifications, like raising the down payment.

2. You’ll only get the advertised mortgage rates from a lender.

Interest rates fluctuate throughout the day in response to market and economic news. When the economy is good (like now with the Canadian dollar up and unemployment down) there’s a potential for inflation and interest rates rise.

A little known secret is that borrowers can ask to customize their loans. Most mortgage lenders advertise 30-year and 15-year fixed-rate mortgages but applicants can ask for 20 or 25 years. Doing this allows borrowers the ability to build up equity faster but keep monthly payments affordable.

3. The bank owns as much of your real estate as you owe them for.

Experts suggest considering the following scenario: you bought property for $250,000 with $50,000 down. The traditional view is that you own 20% and the bank owns 80%. But if the property value goes down $50,000, the bank loses nothing while you lose $50,000.

The reverse is true, as well. If the value of your home climbs 20% to $300,000, the value of your equity will double to $100,000 while the bank gains nothing. In essence, a real estate investment is separate from the mortgage.

4. Home renovations are an investment.

While it’s true that renovations help increase the value of your real estate property, it is a myth that they are investments. In the long-run, more important to future appreciation is the land, which has scarcity value.

This is why: wear and tear over time depreciates the value of your home; this includes that bathroom remodeling you did 5 years ago. To shed some light on this example, let’s take Remodeling Magazine’s 2000 survey findings: estimated from selling a home within one year of renovations, they found you might recoup 81% of the expense of remodeling a bathroom. This also means that you’ve lost 19%!

5. You don’t really need the help of a real estate professional.

With the advent of the Internet and online services like Text4Homes.com, it has made it easier to find and buy real estate without the help of a real estate professional.

However, the real estate market is a convoluted industry. Many factors depend on a successful deal, some of which may include “insider information” like whether or not any offers fell through on a specific property because of inspection reports. “There are more than 90 things that need to be done to get your house closed, any one of which could stop your sale cold if not performed properly,” says Jerry Fowler.

Real estate professionals help buyers through the whole process, from finding available properties to getting a home inspected, securing a mortgage, participating in the final walk-through and attending the closing.

5.1 BONUS MYTH DEBUNKED: The salesperson’s job is done once the sale is made.

A good salesperson’s job truly begins once the contract is signed.

6. The agent listed on the For Sale sign will yield the best deal.

The seller has hired this agent who is now bound by contract to get the best deal for their client. However, dual agents represent both buyers and sellers for the same property. Simply choose to keep confidential details to yourself until you are assured in writing the agent will work in your best interest.

For Real Estate Sellers:

7. Brokers will always aim to get the highest price for your home.

This is where trust comes to the forefront in choosing your real estate professional. Most brokers/agents claim that they always push for the highest price because their commission is tied to the final sale price.

However, some real estate professionals will opt to settle for the first reasonable offer. Why? Perhaps it’s because the sales commissions are typically split four ways: the seller’s agent and brokerage firms, the buyer’s agents and their firms. It doesn’t make (personal) sense to wait days, weeks or months for an extra $10,000 on a $300,000 home when the agent will only receive an extra $150, based on a 6% commission.

8. A house was under-priced if it sells in a few hours.

Apparently, a quick sale is an indication that the real estate property was priced just right! In other words, the buyers and sellers share the perceived value of the house.

9. The first offer is NEVER the best or the highest.

Buyers, for the most part, know what’s new on the market. They are more likely to offer a strong offer at the get-go to offset other buyer offers. It is important to note here that the highest price may not always constitute the best deal, especially when considering other terms like closing dates.

10. It takes too much time to make money in real estate.

Real estate can be very lucrative, but you must know the market and keep up with the constantly changing trends and economy! Everyone has 24 hours in their day. If real estate is something that interests you or you really want to sell your property on your own, then it is possible that you can acquire the necessary knowledge in your spare time.

However, if you really don’t have the time right now, it might be best to wait a little before taking the plunge (or hire a real estate professional). Look closely at your schedule, though, because chances are you do have a little extra time there. And you could be convincing yourself out of huge money in real estate!

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Welcome to the Great Gold North

According to Lauren Kerensky of Forbes.com, Canada’s luxury estate market is booming.

With a strengthening economy and the increasing wealth of soon-to-retire baby-boomers, the Canadian real estate market, particularly for massive properties in Calgary, Whistler and Toronto, is being boosted by strong sales in luxury estates like never before.

Here is a snapshot of the 10 most expensive homes in Canada:

1. The Uplands, British Columbia. $28.5 million Canadian.
2. Shaughnessy neighborhood, Greater Vancouver, British Columbia. $25 million Canadian.
3. Carmarthen Lake Farms, Simcoe, Ontario. $24 million Canadian.
4. Metchosin Oceanfront Estate, Victoria, British Columbia. $24 million Canadian.
5. Hawkridge Farm, Caledon, Ontario. $24 million Canadian.
6. Whistler, British Columbia. $22 million Canadian.
7. Bridle Path, Toronto, Ontario. $21.5 million Canadian.
8. Whistler Mountain Couloir, Whistler, British Columbia. $20 million Canadian.
9. Rosedale, Toronto, Ontario. $19.5 million Canadian.
10. Central Saanich, British Columbia. $18.5 million Canadian.

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Strapped for cash? Worried about mortgages and hefty loan payments? What if I told you that you could buy a house for a buck? You heard me right. And you don’t need to win a reality show to get it.

According to Terri Centinna at Bankrate.com, historic farmhouses in Northfolk, Mass. are available for a single American dollar…if the buyer can move it.

The owners of these valuable properties want to preserve their historical importance while also making room for new developments. To save on the cost of demolition, they have put the houses up for this unbelievable price.

Moving houses is no easy chore to say the least but as Centinna reports, structural moving companies charge anywhere between $10,000 to $25,000 to relocate buildings, depending on the area of the country and the structural condition of the property.

Considering that the average home these days costs upward of $300,000, that’s a bargain! Just watch out for those telephone lines…

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That’s right! Apparently it only costs on average 5% more to build with green alternatives in mind.

On Treehugger.com Chris Dunn reports in his August blog post Number of the Day: 300 that most real estate and construction professionals overestimate the costs of green building versus conventional building by 300% (or triple) the actual cost!

Dunn cites a study (.pdf) of 1400 key players in construction and real estate around the world, conducted by the World Business Council for Sustainable Development (WBCSD). Survey respondents also estimated that buildings emit 19% of the world’s total greenhouse gas emissions; in reality, this number is double that at 40%.

In conclusion: industry professionals grossly overestimate costs of environmentally-friendly building and greatly underestimate the environmental damage done by conventional construction.

Furthermore, in the WBCSD document details, United Technologies Corporation Chairman and Chief Executive George David says, “Existing technologies combined with common sense design can increase energy efficiency by 35 percent and reduce heating costs by 80 percent for the average building in industrialized markets.”

This is documented proof that if home builders spend 5% more on construction costs for green building, they’ll not only be saving the Earth but they’ll also be saving themselves a whole whack of money off their monthly utility bills!

Hmm…what do you think? What would building green be worth to our environmentally-conscious future Canadian real estate buyers?