Making the list

A list is an important exercise that can help you narrow down the most important features you want your home to have. It sharpens your vision and also keeps you on track when having to make compromises (and believe us, everyone makes compromises). You want to make sure your basic needs are met while being aware of where you can be flexible. Here are some of the things you’ll need to consider:

• Location: Perhaps the most obvious factor … where do you want to live? After you have been preapproved for a mortgage, you’ll have a good idea of what you can afford, which may determine where you will end up living. For example, you may be able to purchase a cool two-bedroom condo in the city or a four-bedroom family home out in the suburbs for the same amount of money. Knowing whether location trumps space is important.
• Type of home: Figure out what type of home suits your needs. Look at your list and then look at the different types of homes that are on the market. Young professionals may opt for a downtown condo. A bungalow may be the preference of people considering retirement. Or, perhaps you’re thinking about a detached home, what with your talented family of violinists and all. (We discuss the types of homes in Chapter 6.) If your tastes run to modern architecture, you won’t want to look at Victorian-style homes.
• Exterior: List the features of the property you need. What do you need outside? Is there enough room for the Great Dane to do laps? Do you need fencing around your yard to keep the kids in? Do you need a sunny yard for a garden or one suitable for summer parties? Maybe you need a lot of pavement on which to park your three cars, two motorcycles, and RV.
• Kitchen: If you have a big family, you probably want an eat-in area and built-in dishwasher. If you’re a professional cook, counter space and large appliances may be your priority. The presence of appliances may not be the deciding factor, but room to install them is.
• Bathrooms: If you’re looking for anything with more than one storey, bathroom location as well as the number of bathrooms is important.
• Bedrooms: How many bedrooms are you looking for? Do you need an extra one for a home office or frequent house guests? If you’re just starting out and hoping to have children in the not-so-distant future, count them in when calculating your needs. If your children are finally off to college and moving out, you may want fewer bedrooms.
• Renovations: Are you willing to do them? If the home has everything you’re looking for — the neighbourhood works, the room sizes are great, and you love the garden and the two-car garage — but it hasn’t been updated since 1982 (hey, who doesn’t love an entire house finished in a dusky pink colour scheme?), are you willing to do the work? You may find that a bit of elbow grease gets you exactly what you want.
• Other considerations: How small is too small for your bedroom? For your kitchen? Will stairs be a problem for anyone in your household, now or in the future? Do you need a finished basement for your home office, your home theatre, or your kids’ playroom?

Use Table 7-1 to organize the features you need or want in a new home. Complete the chart by considering what is absolutely essential to your needs, and what you’d really like to have (but that you could live without). For some items in the chart, like a dishwasher or a fireplace, it’s a simple yes/no proposition. A fireplace may be “nice to have,” but is it really “essential”? You decide.

Choosing features in a home isn’t all sunshine and roses. You may think you want a corner lot with a big yard, but have you bargained for the snow shovelling, leaf raking, and lawn mowing that go with it? How about the settling foundation and structural decay of your dream Victorian mansion? We’re not saying you should change your mind about what you want, but when you set your priorities, think about the drawbacks of maintenance and repair that go along with the benefits of the home you want to own.

Checking what’s on your doorstep

When identifying your home needs, focus on both the home’s interior and exterior elements. However, the neighbourhood where your home is located is also a consideration. You may be able to renovate a bathroom in your house, but you can’t just move the bus stop in front of your white picket fence or force the fire department to move several blocks away. Your location can affect the way your home value appreciates or depreciates — the old saying, “Location, location, location,” isn’t an exaggeration.

Consider the specific location of your desired home, as well as the general area. Living three streets away from train tracks may be fine for you, but being across the street from them is absolutely unthinkable. Or maybe you like a certain neighbourhood, but don’t want to live on the busy main drag.

What about local amenities — is it important to be close to shops, parks, or community hubs like a school, library, or place of worship? If you drive everywhere, then perhaps you don’t need amenities close by. On the other hand, if you don’t have a car, having some of these places within walking distance may be important. Access to public transportation is also a consideration.

A neighbourhood isn’t only a particular location; it’s a type of environment. Look at the characteristics of the areas you like best. Do you like a dense community with people and activity? Or does a secluded location appeal to you? Do you like to see Christmas decorations up in the middle of November, or would you rather not see any at all? Do you want plenty of trees, playgrounds, and parks? Or are sleek high-rise condominium towers near the theatre district more your style?

Think about your family’s needs. If your family is athletic, you may want to be near a community centre or a soccer field. If you have children, check out the local schools and find the boundaries (if any) for the catchment areas. A catchment area is the geographical area that outlines the boundaries of the neighbourhood that qualifies for admission to a certain school. Maps of school catchment areas are available from local school boards. If you want Junior to go to that special French immersion academy, you’d better make sure the location of the house you’re considering allows him to attend that school.

Staying connected

Home is where the heart is, but many people spend a lot of time outside the home: the office for you, and schools for the little ones. How far away are you willing to live from where you work? Don’t forget there’s added expenses the farther away you live (more gas, more wear and tear on your vehicle), as well as more stress (longer travel time, more traffic). Having said that, what you need and where you want to live may not always fit in the same budget. That four-bedroom detached home close to work may be two or three times more expensive than the home that’s a 45-minute train ride away.

Try to do a test drive or transit ride from your potential neighbourhood to your workplace during rush hour. How long does it take? How is the traffic on the new route, or the transit service? Your initial reaction to the commute will tell you whether you’re making a good move.

If you’re a parent, think about transportation challenges for the kids too. Can you let the little ones walk to school, or will they need to take a bus or get a drive from you? Is there a nursery or daycare conveniently near to your commuting route?

Of course, location is all about work. Jobs and schools will change, but what brings you joy when you’re not at work is also important. You want a place you’re happy to come home to (even if it does take an hour). Consider where you want to be when you are not at work and then how far you’re willing to travel to be there.

Defining neighbourhood character

You may find that your community is relatively quiet during the day, but the park across the street becomes a hive of activity on evenings and weekends, potentially clogging streets and is just plain noisy. Make sure your potential neighbourhood suits your needs during the day, in the evenings, and on weekends. Find out what you can’t see just by looking. Word of mouth can also be a huge factor in your decision.

• Safety: Consult the local police stations and community papers for statistics on neighbourhood crime. Police statistics are increasingly available online, often broken down by neighbourhood.
• Emergency services: Check for the proximity of fire stations, police, and hospitals. Not only will these services make you feel safer if they’re close by, but they can also help reduce your insurance costs by reducing the risk of burglaries or total destruction in a fire.
• Local information: Check community newspapers and websites to assess how much of a community the neighbourhood really is. Consult the local planning department to discover plans for major infrastructure projects, housing or commercial developments.
• Owner statistics: Consult the Canada Mortgage and Housing Corp.’s Housing Market Information Portal (accessed via www.cmhc-schl.gc.ca/en/data-and-research) to discover the ratio of owners to renters in the neighbourhood. A greater proportion of owners generally means a greater commitment among residents to keeping the neighbourhood clean, safe, and happy.

• Education facilities: Visit the local schools. Find out if most of the children in the area attend the local schools, and if not, why. Conversely, if many students attending school in the area come from other neighbourhoods, then you can be confident it’s well-respected.

  The Fraser Institute publishes annual reports that rate secondary schools in British Columbia, Alberta, Ontario, New Brunswick, and Quebec. If you’re considering buying a home in these provinces, you can visit www.fraserinstitute.ca and click the “School Rankings” tab for the latest report.

• Commercial activity: Visit local eateries and businesses. If new ones are moving in and businesses are thriving, it’s a sign that the community is growing and that property values may go up by the time you get around to reselling your home. Lots of For Sale or Lease signs in a nearby commercial area can be a signal of change. The type of businesses in an area also indicates the demographics of the community. Retailers do a lot of market research before choosing a location.
• Major construction: Keep your eyes open for street construction, transportation expansion, or shopping malls and community centres being built — all are signs of a growing community.
• Public transit services: Find out how accessible public transportation is in your area. Easy access increases the value of homes for resale, even if you don’t need to use it yourself.
• Community affairs: Attend a neighbourhood meeting to get an idea of how involved residents are in local affairs, as well as what their local concerns are.
• Overall contentment: Talk to the people in the area to find out how happy (or unhappy) they are. You will most likely feel the same way after you move in. Alternatively, you may find your potential neighbours cramp your style.

Improving the prospects

What if you find that perfect neighbourhood, but a few quick inquiries tell you that it’s out of your price range? Well, you’ll probably have to start neighbourhood hunting again, but now that you know what you’re looking for, it should be an easier process. Check out the fringes of your dream area for gems that are close to, but not smack in the middle of, your preferred community. You may be able to find a home in the path of that community’s expansion. Or, find yourself a neighbourhood that seems to be up-and-coming. Here are some things to look for when trying to find that diamond in the rough:

• Home improvements: Look at houses in the fringe areas for signs of renovations or improvements. When homeowners spend money to improve their homes, it shows that they’re happy enough with the neighbourhood to invest in it. What was once down and out may soon be up-and-coming: Large packs of hip young professionals roaming the streets are often a good sign.
• Real estate activity: Look for “sold” signs on homes, which means that many buyers want to live in the area, or a number of sellers who want to leave. Your agent should also be able to tell you how quickly local homes are selling and point you to areas where activity is strong rather than sluggish.
• Commercial postings: Look for signs that shops and restaurants are moving in. A healthy area attracts the investment of new business owners. A new coffee shop can be seen as a good sign; a pawn shop … not so much.
• Major public developments: New transportation sites can be a stimulus for business and development, and new zonings can indicate the government’s interest in investing in the area. New parks and schools can indicate the growth of families in the area.
• Attractive exteriors: Look for well-maintained homes and well-groomed gardens and yards. A neighbourhood where residents care about their homes is a place to be.

You can also keep an eye open for flipped homes, one of those homes that someone has purchased, renovated, and hopes to sell for a quick, healthy profit. You can usually spot a flipped home with the help of your agent: It was purchased recently and renovated by the seller, often within the space of several months. Your agent has the ability to track the home’s history in most cases, so you’ll most likely be able to determine what the seller paid for the property and the state the home was in when it was purchased. Expect to see a lot of cosmetic upgrades, like new kitchens and bathrooms, flooring, and paint. Changes to the exterior, like paint and possibly even a new roof, as well as alluring landscaping, gives the property the street appeal to pull in buyers.

Up-and-coming neighbourhoods are often key targets for home flippers because these areas will be attracting many buyers, and because homes in their original condition will be less expensive than their counterparts in more established areas. Flippers also tend to target the type of buyer who wants everything already done — and for many buyers, an essentially all redone home in a neighbourhood that’s moving up on the food chain can be an attractive option.

Nothing’s wrong with purchasing a flipped home; however, do make sure that the seller has pulled all the appropriate permits necessary and has made all upgrades to code. Just because the home looks all new and shiny doesn’t mean you don’t need to do an inspection. We discuss flipped homes in greater detail in Chapter 8.

Your neighbourhood priorities

What’s going on outside your home is as important as what’s going on inside. Use Table 7-2 to help you form an idea of what qualities in a neighbourhood and a community matter to you, just as you did for a home using Table 7-1.

Working with your agent

Be open to the expert guidance your real estate agent has to offer (refer to Chapter 2 for advice on finding an agent). Agents spend hours scouring listings and often bring years of real estate experience to the table. A good agent who’s in touch with the market may even know about purchase opportunities before they’re officially put on the market.

Give your agent as much information as you can about what you’re looking for, but be open to her advice about the kinds of homes that might fit your budget or neighbourhoods that might have what you want. Be sure not to limit your search too much; you want your agent to cast a wide net at first so you can see what’s available, and then you can narrow down the choices to what’s realistic. For example, if your budget is $300,000, see what’s available for that amount in your region; you may discover that you should be looking in a specific area or for a specific kind of home (say, a two-bedroom home rather than one with five bedrooms, home theatre, and heated pool).

Many real estate agents have access to a home tracker tool, where the agent enters in the vital statistics of your dream home (including price range) and you’re sent notifications when a home goes on the market fitting that description. In many cases your agent can target specific streets and even blocks. You can narrow down the style of home you’re looking for and set minimum values for the number of bedrooms, bathrooms, and interior dimensions — you name it. These alerts will keep you on top of any new listings that meet your criteria and can save you hours of scrolling through listings or visiting random properties.

If you want to live only on one particular block or in one specific building, your agent will be able to send a letter to people living there to see if they’re considering moving. This is another way to find a property before it hits the market.

If you feel your agent isn’t listening to you or isn’t providing you with good service, talk about the situation. If you’re not able to clear up the problem, you may need to find a different agent.

Working online

Going online is a vital tool for home buyers looking to do their own groundwork. One of the best tools, and one that will let you match wits with your agent, is the Multiple Listing Service (MLS) site with listings from agents at real estate boards across Canada (www.realtor.ca). A typical MLS listing gives you a great deal of detail about a given home, including the number and size of rooms, lot size, interior dimensions (square metres or square feet), approximate property taxes, and additional information — details such as “renovated kitchen” or “professionally landscaped.”

Professional integrity requires that agents write listings that are neutral in tone and in no way prejudicial. However, keep your eyes open for clues in the description such as “reduced” or “motivated seller” that may tip you off to potential bargains. Terms like “with a little TLC,” “fixer-upper,” or “handyman special” signal properties that may take more work than you’re ready to put in.

Using MLS is a good way to start your search and get familiarized with various neighbourhoods and price points. You can even map the opportunities, allowing you to identify neighbourhoods where you may have more luck finding a home. For example, a friend of Peter’s realized that if she ever hoped to buy a home, she would have to accept a 45-minute commute. Although she gave up on her dream of being close to downtown, by watching the MLS she was able to narrow down her target market and find a home in an affordable neighbourhood — and finally become a homeowner.

Plenty of properties aren’t listed on the MLS, however. Homes for sale by owner have separate sites, and many brokerages and agents maintain their own database of listings. You can dig into this data by becoming familiar with what’s available. Your agent can help you discover more information about any listings you uncover.

Even though newspapers and other print resources carry real estate ads, most of the listings are also available online. Although we don’t discourage you from leafing through newspapers and magazines looking for listings, we do believe the most efficient way to search for properties is via the MLS system and other online tools.

Working the neighbourhood

Despite all the tools that help you search for a home without ever leaving where you live now, you can still pound the pavement. While you’re scouting a potential neighbourhood to get a feel for the area, keep your eyes open for new developments and “For Sale” signs. Agents will tell you that a home that doesn’t seem like a winner online can be a real gem in actuality. If you see something that grabs your eye at street level, do more research.

Working your network

The more people who know you’re buying, the more people who will suggest properties to you. Friends may have friends in the area who are thinking of selling. Talking with people in the neighbourhood you’re considering may also turn up leads. Neighbours may know who’s outgrowing their home or who’s retiring to Florida next winter. Don’t underestimate the value of word-of-mouth networking.

Thanks to social media, you also have a chance to tell people that you’re in the market. Social media may also help you sell your existing home (we discuss marketing your home in Chapter 15). But remember to play it safe! Although you can let people know that you’re in the market, hold your cards close to your chest and keep conversations of specifics private; you don’t want to give other people a head start on your offer or make yourself a target for identity theft.

Don’t get so caught up in getting a bargain that you lose sight of what you’re buying. If your cousin’s neighbour’s daughter-in-law’s brother is trying to sell you a home, make sure you actually want it. You’re trying to buy a home, not make a deal or keep the extended family happy. Never ever engage in oral agreements, even if the price seems right (see Chapter 9). You need a written agreement and the opportunity to do some in-depth investigation before you negotiate the price and terms of sale. An objective assessment of the property’s value, a professional home inspection and the proper legal paperwork need to be carried out to make sure everything’s on the level (including the house’s foundation).

Attending open houses

Often sellers have open houses when they first put their homes on the market, giving you a great opportunity to check them out. You can talk to the seller’s agent in person. Find out (if you can) why the sellers want to sell, and how motivated they are to sell. If you don’t like the idea of having other people looking at the home at the same time as you, remember you can always make an appointment to see the home again privately. Pay attention to what other potential buyers have to say; they may notice something about the home that you’ve missed, or have done some productive snooping where you were too shy to look. Listen to their potential plans for the home; they may give you some good ideas.

Be sure to tell the agent at an open house that you are working with an agent. It avoids any expectation on the agent’s behalf that you need assistance in your house search.

In a hot real estate market, you’ll find that many properties sell without ever hosting an open house. A home may be listed on MLS and then a few days later the selling agent holds an open house to give other agents an opportunity to view the home, but a public open house just isn’t necessary. If you’re working with an agent, you may well be able to attend that agents’ open house in her company — and get a jump on the competition.

Stacking up the properties

After you identify a few homes you like, you need to examine them closer to make sure they meet your needs and wants. Keep an eye open for the following:

• Curb appeal: The first thing you think about when you view a home is what it looks like from the outside. Even if the property may look a bit run down right now, will a coat of paint and some sprucing up of the landscaping make a difference?
• Architectural style: You may find it difficult to choose what you like from the many styles of home architecture available. Conversely, you may want to steer clear of certain types of homes that just don’t float your boat. Perhaps you’ll “just know” your favourite when you see it. Your gut instincts play a big part in choosing a home.
• Investment potential: Consider buying a home the same as making an investment, because it’s probably the biggest purchase you’ll ever make. Think about the resale value of the home you’re buying and what kind of profit you’ll make on your investment. Someday, for some reason, you’ll want to sell your home and hopefully receive more than you paid. Buy with a long-term outlook and look for features that will stand the test of time. You’ll reduce hassles for yourself and make it a better option for the next owner.

Scrutinizing more than one house

The more homes you see, the greater your focus will become. You’ll know what you like and what you dislike. But we hope you don’t have to view a hundred houses! If you can, stick to the ten-house rule: Visit at least ten homes, including public open houses as well as private viewings set up through your agent, before you decide to make an offer. You may think this is extreme, but the first set of homes will probably wow you with their cosmetic charms; after ten wows, you’ll have become more critical than “I really like the colour of that bathroom.”

Keep in mind that if you’re focused on a specific neighbourhood, it may take years for ten houses to come on the market. To hone your critical skills, visit others in the surrounding area and perhaps draw up a short list of three in the area you want instead.

However, sometimes when you know, you know. You may fall in love with the first condominium you see, knowing full well that the place has everything that you need and want. If that’s the case, you may want to pounce. Think about it: If you found the perfect partner, would you keep dating others? (We’re hoping you’ll say no.) Try not to talk yourself out of a good fit. You’ll ultimately drive yourself (and your agent) crazy.

When looking at homes, it makes sense for you or your agent to book appointments one after the other. This approach is efficient, and comparing homes is easier when they’re fresh in your mind. But try to look at only three or four homes in a day, and take careful note of each home’s features. Seeing ten homes in one day will result in nothing but confusion: Was house number two the one with the great kitchen or was that number four? (Refer to the section, “Stacking Them Up — How the Homes Compare,” later in this chapter to help you compare the properties you see.) Many homes also have feature sheets that present detailed information and include a picture. Remember to pick up feature sheets wherever you can to help your recall when you’re trying to make decisions later. Your agent should be able to provide you with detailed information sheets as well (often from agent-only information sites).

Look at homes more than once; don’t feel you have to make a decision about a home as soon as you’ve seen it. Unless you’re looking in an incredibly strong seller’s market and squaring off against other buyers making aggressive offers, make more than one visit to a home you’re seriously interested in, preferably during different times of the day and of the week. And, if do feel pressure to make a decision, either from the seller or other buyers, discretion may be the better part of valour: If it’s not love at first sight, it may not be the right fit.

Avoid buying the most expensive home in the neighbourhood. Because home values are influenced by the values of the other surrounding residences, the most expensive homes on the block will have a smaller appreciation than others. After all, if most homes on the street are selling for $225,000, people will probably think twice before making an offer on the home that’s listed at $450,000, regardless of how nice it is. Consider buying the lowest-priced house in the best neighbourhood to maximize the potential appreciation in value (especially if you plan to make upgrades).

Heating systems

Although you get an estimate of what your heating costs will be from your seller’s previous bills, knowing what kind of system — electricity, gas, oil, solar — you’re getting makes sense. A poorly maintained furnace with overused filters and clogged ducts will be more expensive to run than a serviced one, regardless of its heating source.

To conserve energy, many homes now have heat pumps or mini-splits that are more efficient and allow for zoned heating and cooling. Ask whether this option is in place or can be installed. In many parts of the Canada, the cost savings can be significant at the same time as improving a home’s comfort.

This following sections discuss the various options available in terms of systems and the fuels they use.

Fuelling up

Several kinds of energy are available to power your heating system. Here are the choices a home may have.

Considering electricity

From lighting to cooking, electricity runs most of the important household services you use on a daily basis. You need a reliable and safe electrical system in your home. Be aware of service amps and GFCI — they’re two important aspects of a home’s electrical system. Don’t forget to make sure that the actual wiring is up to snuff, too — it only takes a spark to get a fire going.

UFFI

No, we’re not talking about Martians; insulation is the alien creature in question. UFFI, or urea formaldehyde foam insulation, was a popular insulation in the mid-1970s. Unfortunately, when the UFFI foam ingredients weren’t mixed properly, the resulting insulation released quantities of formaldehyde gas in homes, causing breathing problems and other adverse health effects for some people. UFFI was banned in Canada in 1980. However, UFFI may still be in some homes today. The government gave out three times more grants for manufacturing UFFI insulation than the number of rebates that have been applied for to replace it.

If the UFFI in a home was installed properly, it shouldn’t break down or pose a risk to you. The Canada Mortgage and Housing Corp. (CMHC) will now insure UFFI-equipped homes. As a safeguard, you may still want to include a clause in your offer to purchase contract, stating that the seller warrants that the home isn’t insulated with UFFI (in some provinces the clause is preprinted in the paperwork). Most sellers will be able to disclose that, to the best of their knowledge, they are or aren’t aware of any UFFI in their home.

Asbestos time, the worst of times

The amazing insulating and fire-resistant properties of asbestos made it a popular material for home builders through the mid-20th century. Demand boomed, and a town in Quebec even named itself after the mineral. But a connection with mesothelioma, a deadly cancer of the lungs and abdomen, eventually saw it outlawed.

A lingering source of asbestos in buildings today is zonolite (also known as vermiculite), a grey popcorn-like insulation material that was blown into the attics and walls of homes for years. The insulation was made from asbestos-contaminated vermiculite ore mined from the 1920s until 1990. Although the mine that was the likely source was closed in 1990, the insulation remains in thousands of homes across Canada.

Owners of older homes may encounter asbestos panels or insulation during renovations. Special precautions are needed to prevent exposure to the material’s lethal fibres during removal and disposal. Health Canada says that the best way to prevent asbestos exposure is to leave the insulation undisturbed, but if it’s a concern, it can cost thousands of dollars to have the asbestos-contaminated insulation removed.

Septic tanks

Many rural areas aren’t connected to the local municipality’s waste management system. Even some urban properties rely on private septic systems to dispose of wastewater. Rather than flowing through a city sewer system to a treatment site, wastewater from these properties flows into a septic tank with a leaching bed (also known as weeping tiles or a tile bed) that treats the water before it goes back into the soil. The average septic tank requires a space of about 1 square metre (10 square feet). Your septic tank should be at least 1½ metres (5 feet) from your home and 16½ metres (55 feet) from sources of water. The leaching bed should be 30½ metres (100 feet) from sources of water. Sludge collected in the tank should be pumped out every four years. According to the Canada Mortgage and Housing Corp., minimum tank volumes range from 1,800 litres to 3,600 litres, depending on the province or territory.

Unfortunately, Canada doesn’t have a uniform standard for septic systems. At best, provincial regulations govern them. The result is no one standard that manufacturers need to meet. You can get a certificate for the septic system from the home’s municipality, but it verifies only the location of the tank and the leaching bed, not its condition.

Don’t assume that every rural home has a septic system; ask the seller exactly what kind of waste system is in place. The house can possibly have a holding tank instead. Unlike a septic system, which processes sewage on-site and needs pumping every few years, a holding tank must be pumped every few months. If the home has a holding tank, speak with the seller about the cost of maintaining it.

If you buy a home with a septic system, you should get a plan (either from the owner or the municipality) that shows where the septic tank and leaching bed are located in relation to the house and water sources. Ask about the tank’s capacity and when the tank was pumped out last. To ensure the tank was indeed emptied when the seller claims, ask for a receipt of the cleaning, which will confirm the date.

The drainfield is the area in the yard directly over the septic system. The drainfield should consist of at least 1¼ metres (4 feet) of native soil between the system and the surface of the yard. When looking at this area, watch for the following problems:

• Trees or shrubs on the drainfield, rather than grass: The root systems of trees and shrubs can interfere with the septic system.
• Pavement, a parked car, a patio, or a building of any kind, such as a garden shed: These items put undue downward pressure on the septic system, which can crush pipes and prevent the system from working properly.
• Patches of lush growth, or overly moist soil over the drainfield: This may be a sign that sewage isn’t being processed properly.
• A bad smell around the yard: Odour may be a sign that sewage is surfacing, which can pose a major health hazard.

Don’t expect a home with a septic system to switch over to a sewer system in the near future, unless there are firm plans for the municipality to do so. Sewer systems are expensive to install, and the local government will usually decide it’s not worthwhile. A septic system, however, should last about 30 years, depending on maintenance.

Well water

Similar to septic systems, a private source of water is used in a home where there are no municipal water lines to supply the residence. The minimum water storage tank you should consider is 40 litres. The main problems with well water are that it can become contaminated and therefore undrinkable. If the well goes dry, you may have to do some serious digging.

If you buy a home that draws water from a well, ensure that you get a certificate from the seller that guarantees the water to be drinkable. You can determine the quantity of water available as well — you should be able to get a certificate outlining the quantity of available water and the possible lifespan of the well. Water is generally tested for bacteria, hardness, and other harmful chemicals. For instance, you may find that there is arsenic in the water. In small amounts this isn’t an issue, but if it’s above acceptable limits you may need to install an expensive filtration system. The well water should be tested annually.

If water becomes contaminated, the municipality sometimes has no choice but to extend a water line up to the area. Your property taxes may increase if water services are extended to your property, however.