This article is not concerning the secrets of buying accommodations property for no money down and half the cost of the market value of the house. I’m not Tom Vu or Don Lapre and I am not realmove in jail.
In Canada, the no money down home did use to exist, however, not anymore. Some banks and/or lenders were ready to lend you the 5% deposit so that you need not pay a dime out of your own pockets to purchase a home. However, given the current finances with tighter lending restrictions, there will be no bank or lenders who can do that in Canada.
The buying home for half price did use to exist aswell. At one point, foreclosures in Canada would allow foreclosed homes to be sold at very cheap prices. The new law, which includes been in placed for quite some time now require the homes be sold at the highest possible price for foreclosed homes if not the lenders could possibly be sued. Hence, sometimes foreclosed homes sell higher because Canadians have the misconception that foreclosed homes are a excellent deal causing it to have a reverse affect. There have been many people buying foreclosed homes believing they got a good deal and not performing a thorough check regarding the actual value of the home.
Now, clearing out the quick money maker myths of buying homes, there are still many things you need to be alert to before starting.
If there exist ever an industry with more sneaky sales tactics and money motivated people, it’s got to the true Estate industry. As a buyer, you could be dishing out $350 000 and everyone wants a bit. The Real Estate Agents want a piece. Lenders want a bit. The lawyers want a bit and the sellers want piece. No wonder you can find so many scams in this industry.
The first thing to be aware of is the AGENT. AN AGENT is suppose to act on your behalf to buy or sell the house. Both the buyer of the home and seller of the home will have their own AGENT called a Buyer’s AGENT and a Seller’s AGENT.
In Canada, each Real Estate Agent gets typically 2.5% and sometimes 2% for the commission of selling the house. Some REALTORS provide cash return rewards. Canadian Real Estate Agents gets higher commission than somewhere else. In United States, their Real Estate Agents only get 1% of the commission and their homes are actually much cheaper. Even though Real Estate Agents will be the least educated of the parties involved in the buying home transaction, they appear to be getting the biggest piece of the pie.
Do not pay attention to their gimmicks on REALTORS are ethical. (http://www.howrealtorshelp.ca) Where do they get the idea any Real Estate Agent off the road is ethical. Their claim is founded on these tests that they pass to become a AGENT. Agents passing a test will not meant hey are ethical. It only means they are able to remember enough to pass the test.
One would believe it ought to be the true Estate Agent’s job to help the buyer ensure the house is of value. Rightly so, many buyers depend on the Real Estate Agent to safeguard them and offer them advice and for me, the ethical AGENT should do that. However, the real reality is that Real Estate Agents do not earn money unless if the home is purchased. The reality is that the Real Estate Agent’s salary isn’t truly dependent on providing you advice. THE TRUE Estate Agent’s job would be to get the buyer to buy a home through them so they can get paid!
Because of this, what ends up happening, are two forms of REALTORS with variations in between. The initial type may be the honest agent with the belief “EASILY work hard and treat my buyer right, the customer will come back to buy more homes from me. The next type is the “I have to get the buyer to get a house quickly in order that I can move on to the next buyer (sucker) so that I could maximize my time for profit.” The bottom line is that you are searching for the first type and you also want to avoid the second type.
We’ll call the initial type, the Bad AGENT. We’ll call the next type, the Good Real Estate Agent.
So what sort of characteristics does the Good AGENT have that the Good Real Estate Agent does not have?
1. The initial characteristic is Patience. Bad REALTORS will attempt to sell you a home quickly to find the money quickly. Do not purchase a house without spending considerable time looking at a number of different homes. Be careful of tactics such as Real Estate Agents claiming it’s the perfect and acting just like a salesman rather than providing you information.