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 am not Tom Vu or Don Lapre and I’m not in jail.
In Canada, the no money down home did use to exist, but not anymore. Some banks and/or lenders were willing to lend you the 5% down payment so that you need not pay a dime out of your own pockets to purchase a home. However, given the current financial situation with tighter lending restrictions, there will be no bank or lenders who is able to do that in Canada.
The buying home for half price did use to exist aswell. . At one point, foreclosures in Canada allows foreclosed homes to be sold at very cheap prices. The new law, which has been in placed for several years now require the homes be sold at the highest possible price for foreclosed homes if not the lenders could be sued. Hence, sometimes foreclosed homes sell higher because Canadians have the misconception that foreclosed homes certainly 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 doing a thorough check as to the actual value of the home one pearl bank.
Now, clearing out the quick money maker myths of buying homes, there are still a lot of things you need to be aware of before starting.
If there exist ever an industry with an increase of sneaky sales tactics and money motivated people, it has 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. The lenders want a piece. The lawyers want a piece 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 in your stead to buy or sell the home. Both the buyer of the house and seller of the home will have their own AGENT called a Buyer’s Real Estate Agent and a Seller’s AGENT.
In Canada, each AGENT gets typically 2.5% and sometimes 2% for the commission of selling the home. Some REALTORS provide cash return rewards. Canadian REALTORS 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 little bit of the pie.
Do not pay attention to their gimmicks on REALTORS are ethical. (http://www.howrealtorshelp.ca) Where do they obtain the idea any AGENT off the road is ethical. Their claim is based on these tests that they pass to become a AGENT. Agents passing a test does not meant hey are ethical. It only means they are able to remember enough to pass the test.
One would believe it should be the Real 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 true reality is that REALTORS do not earn money unless if the home is bought. The reality is that the true Estate Agent’s salary isn’t truly dependent on giving you advice. The Real Estate Agent’s job would be to get the buyer to buy a home through them so they can get paid!
As a result of this, what ends up happening, are two types of Real Estate Agents with variations in between. The first type may be the honest agent with the belief “If I work hard and treat my buyer right, the buyer will come back again to buy more homes from me. The second type is the “I need to get the buyer to get a house quickly so that I can move on to another buyer (sucker) so that I can maximize my time for profit.” The end result is that you are looking for the first type and you want to steer clear of the second type.
We’ll call the initial type, the Bad Real Estate Agent. We’ll call the next type, the Good AGENT.
So what sort of characteristics does the Good Real Estate Agent have that the Good AGENT does not have?
1. The first characteristic is Patience. Bad REALTORS will attempt to sell you a home quickly to obtain 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 REALTORS claiming it’s the perfect and acting such as a salesman rather than providing you information.