3 Things That Could Derail Your Home Buying Journey

Winnipeg
R e a l E s t a t e T i m e s
Home Buyer
B eware!
3 Things That
Could Absolutely
Kill Your Deal!

Congratulations
You made an offer on a house, it was
accepted, and your mortgage lender
approved the deal.
Home Free, right?
Not so fast! Because mortgage approval is
still subject to the buyer getting Home
Insurance.
If you don't get insurance, the lender won't
mortgage the property, and you lose
You lose the home of your dreams, AND you
may lose the deposit money as well!
And there are 3 things Home Insurance
Companies HATE:
Knob-and-tube wiring
Aluminum wiring
Woodstoves and fireplaces

Knob & Tube
Wiring
Common wiring practise on
homes built
prior to the 1950's
Easily identified by white
porcelain knobs and
hollow tubes running
thru wooden floor joists.

What's Wrong
With It?
It's OLD.
70-120 yrs old.

How To Fix It?
Only 1 safe solution:
Complete replacement of
all wiring!
Estimated cost:
$7K to $30K

How will Insurance
Companies react?
Agree to insure you at a
premium (100% or more?)
Not provide insurance at all
Agree to insure for 30-days,
with demand that the new
owner replace all wiring

Aluminum
Wiring
Sometimes found in homes
built bet. 1960 - 1976
Easily identified by the fact that
the bare wire is silver-toned in
colour, as opposed to copper.

What's Wrong
With It?
Nothing....IF left alone.
Still used in industrial,
commercial applications
Problem Is:
It does not play well with
modern, copper-based
devices, switches and plugs.

How To Fix It?
Owners have 2 options:
Mitigation' , which requires an
electrician to properly connect
all devices, switches and plugs to
the aluminum wiring in the
house, ($1,500 to $2,000)
or
Complete rewire
of the house.
($10K plus)

How will Insurance
Companies react?
Some may still agree to
insure the property (fewer
options for the buyer)
Most will demand
'mitigation' in some form,
such as:
Re-connect all plugs,
switches and lights with
proper marettes (Approx.
$1,500 per home) or
Entire re-wire of the home,
(est. $15,000+)

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Fireplaces &
Woodstoves

What's Wrong
With Them?
Building Codes
Have Changed
Over The Years
Woodstoves, especially, may no
longer meet fire-code. New
code requires heat shielding,
and safety zones around the
stove to prevent it from causing
fires.
Older fireplaces, (pre-
1980's) may have claylined
chimneys which
are subject to cracking
and crumbling when
over-heated. This
creates a fire hazard.
Newer fireplaces with
metal-chimneys will
still need to be cleaned
and inspected on a
regular basis.

How will Insurance
Companies react?
In cases of woodstoves,
some insurance companies
will not insure them at all.
Some will require a stringent
inspection and updating (if
possible) of any firepreventing
heat shielding
In case of fireplaces,
thorough inspection may be
required and if found to be a
safety hazard, owners will
be required to repair, or
prevented from using it.

What about the Sellers
responsibility to 'disclose'?
Disclosure does not mean
"Advertising" or "Volunteering"
Sellers must answer direct
questions honestly.
Buyers need to ask the right
questions.
Just because the current sellers
HAS insurance, does not mean
the next owner will be ABLE to
GET insurance. (Grandfathering)
Buyers need to work with an
experienced and knowledgable
agent to help ask the right
question.

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Spacious, clean and well-laid out store with everything from new and gently used clothing and shoes, to
household goods, small appliances, toys and pet supplies.
Inside, enjoy some great tasting coffee with fabulous baked goods from Nachelle’s Cakes while you visit
with the furry, four legged friends in the Cat Room.
100% of proceeds go to support D’Arcy’s Animal rescue Centre , which helps save nearly 1,000 cats and
dogs each year in our city.
When you’re in the neighbourhood, come check out Annie’s Attic Thrift Store and Cat Café, open daily
from 11-6, except Sundays.

Home Buying Process

About The Author
In 2005, after completing an exciting
career as a Police Officer for the City of
Winnipeg, Bo joined RE/MAX
Performance Realty, Winnipeg’s largest
and most successful Real Estate
Brokerage.
In 2006, wanting to learn how to better
serve his home buying clients, he earned
the designation of A.B.R.®, Accredited
Buyer Representative.
Over the years, Bo developed a strong
passion for working with buyers and
sellers of houses and condos in Winnipeg.
This passion helped him to be inducted
into the RE/MAX Hall of Fame in 2010,
awarded to agents who have sold over
$40 Million Dollars of real estate.
In 2019, Bo received the RE/MAX Lifetime Achievement Award,
presented to agents who have sold over $120 Million Dollars
worth of homes. By this time, Bo Kauffmann had helped over 500
buyers and sellers of houses and condominiums in Winnipeg.
In 2020, again wanting to expand his knowledge and expertise,
Bo became a Certified Luxury Home Marketing Specialist. “I love
the additional tools, resources and access to international buyers
that this Institute has given me.”