Click here to download May 2006 Newsletter (pdf)
Appliances...when to
replace or repair?
How do you know when to replace or repair an aging or broken appliance that is past its warranty? The energy efficiency of today’s major appliances can make this decision easier than it has been for previous generations but that doesn’t mean there aren’t other factors to consider...age of the old appliance, price of a new one, special costs and new technology.
For years, the major appliance repair or replace rule of thumb has been: if an appliance’s repair estimate is 50% of the cost of a new replacement and the item in need of repair is 7 – 10 years old or older, it’s probably a good idea to replace it.
Today, however, most major appliances are so much more energy efficient than older models, they warrant breaking this rule of thumb. A refrigerator, for example, is the biggest single power consumer in most households and the newer, more energy efficient models can use up to half the power of a 10-year-old model. Check the EnerGuide label. This label details how much energy the appliance will typically consume in a year of normal service and makes it easier to compare the energy efficiency of various models. (Check out http://oee.nrcan.gc.ca/equipment/english/index.cfm?attr=4 for more information.)
Beyond the energy efficiency considerations, the repair or replace decision is not so clear. Some questions to ask:
· Will there be special costs? i.e. removal, installation and disposal costs to replace an old appliance? Fees can add up and tip the scales back to a decision to keep the old appliance.
· How difficult will it be to replace a built-in or over-sized appliance that can’t be moved through doors or past railings to get the appliance out of the house?
· Will new features give greater flexibility and convenience and add to the value of the unit, provided they are actually used? A dishwasher with five automatic cycles isn’t as valuable if only three are used.
Labour accounts for about 75% of the cost of a repair. What about repairing an appliance yourself? Owner-completed repairs are an often overlooked option for home owners with appliances that are out of warranty but perhaps not quite old enough to generate repair bills that would warrant buying a replacement. Appliance owner’s manuals have troubleshooting sections that could help. A website called The Repair Clinic (www.repairclinic.com) also has some good resources for pinpointing problems. If the repair is extensive, however, it may be time to consider a replacement.
Periodic maintenance as prescribed by the appliance manufacturer can extend the life of an appliance and can delay the replace vs. repair decision. A clothes dryer’s lint-clogged filter or venting, for example, can make it work harder by increasing drying times and could even start a fire. Overloading a washing machine can make it old before its time. Take care, though, that none of the preventive maintenance tasks void the warranty. If panels are removed or screwdrivers or other tools used, the warranty could be voided. The Repair Clinic website has a month-by-month maintenance calendar for all appliances.
Market Update - April 2006
SALES EASE IN APRIL, PRICES UP
Housing sales in Greater Vancouver totalled 3,345 units in April, a decrease of 17.3% compared to sales in April 2005. However, both 2005 and 2004 were exceptionally strong years for real estate activity during which consumers satisfied pent-up demand for housing. April 2006 sales show an increase of 8% when compared to sales in April 2003.
Active listings are down 22.3% compared to last April, which continues to put upward pressure on property values. The benchmark price of a detached home in Greater Vancouver increased to $620,947 in April, up 19.7% compared to last April, the benchmark price of a townhome rose to $380,163, up 16.7%, while the apartment benchmark price increased to $309,484, up 21.8% compared to April 2005.
Sources: Real Estate Board of Greater Vancouver, Realty Times
If
you have
any questions about real estate or would like a
no-cost, no-obligation
market
evaluation, please call me.
Gord
Allan
604.936.0422
gordallan@remax.net
April 2006