This article is not concerning the secrets of buying accommodations property for no money down and half the price of the market value of the home. I am not Tom Vu or Don Lapre and I am 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 don’t have to pay a dime out of your own pockets to purchase a house. However, given the current financial situation with tighter lending restrictions, you will see 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 rock bottom prices. The new law, which includes been in placed for several years now require the homes be sold at optimum 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 get a reverse affect. There were many people buying foreclosed homes believing they got a good deal and not doing a thorough check as to the actual value of the house.
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 more sneaky sales tactics and money motivated people, it’s got to the Real Estate industry. As a buyer, you could be dishing out $350 000 and everyone wants a piece. The Real Estate Agents want a piece. The lenders want a bit. The lawyers want a bit and the sellers want piece. No wonder there are so many scams in this industry.
The first thing to understand is the Real Estate Agent. AN AGENT is suppose to act in your stead to buy or sell the house. Both the buyer of the house 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 an average of 2.5% and sometimes 2% for the commission of selling the home. Some Real Estate Agents provide cash return rewards. Sunnybrae Canadian REALTORS gets higher commission than anywhere else. In United States, their REALTORS only get 1% of the commission and their homes are in fact much cheaper. Even though REALTORS 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 listen to their gimmicks on Real Estate Agents are ethical. (http://www.howrealtorshelp.ca) Where do they get the idea any AGENT off the street is ethical. Their claim is founded on these tests 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 Real Estate Agent’s job to greatly help the buyer ensure the house is of value. Rightly so, many buyers be determined by the Real Estate Agent to protect them and provide them advice and in my opinion, 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 Real Estate Agent’s salary isn’t truly dependent on giving you advice. THE TRUE Estate Agent’s job would be to get the buyer to get a home through them to allow them to get paid!
Because of this, what eventually ends up happening, are two types of REALTORS with variations in between. The initial type is the honest agent with the belief “EASILY work hard and treat my buyer right, the buyer will come back to buy more homes from me. The second type is the “I need to get the buyer to get a house quickly in order 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 searching for the first type and you want to avoid the second type.
We’ll call the initial type, the Bad Real Estate Agent. We’ll call the second 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 first characteristic is Patience. Bad REALTORS will try to sell you a home quickly to achieve the money quickly. Do not buy a house without spending a lot of time looking at a number of different homes. Be careful of tactics such as Real Estate Agents claiming it’s the perfect and acting such as a salesman rather than offering you information.