This article is not about the secrets of buying accommodations property for no money down and half the price of the market value of the house. I’m 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 ready to lend you the 5% down payment so that you need not pay a dime from your own pockets to purchase a house. However, given the current finances with tighter lending restrictions, you will see 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 would allow foreclosed homes to be sold at rock bottom prices. The new law, which has been in placed for quite some time now require the homes be sold at optimum price for foreclosed homes or else the lenders could be sued. Hence, sometimes foreclosed homes sell higher because Canadians have the misconception that foreclosed homes are a really good deal causing it to possess a reverse affect. There have been lots of people buying foreclosed homes believing they got much and not performing a thorough check as to the actual value of the home.
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 will be dishing out $350 000 and everyone wants a bit. realmove The Real AUCTIONS 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 understand is the Real Estate Agent. AN AGENT is suppose to act on your behalf 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 Real Estate Agent.
In Canada, each Real Estate Agent gets typically 2.5% and sometimes 2% for the commission of selling the home. Some REALTORS provide cash back rewards. Canadian Real Estate Agents 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 piece of the pie.
Do not pay attention to their gimmicks on Real Estate Agents are ethical. (http://www.howrealtorshelp.ca) Where do they obtain 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 does not meant hey are ethical. It only means they can remember enough to pass the test.
One would believe it ought to be the true Estate Agent’s job to greatly help the buyer ensure the house is of value. Rightly so, many buyers depend on the Real Estate Agent to protect them and provide them advice and for me, the ethical Real Estate 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 TRUE Estate Agent’s job is to get the buyer to buy a home through them so they can get paid!
Because of this, what ends up happening, are two types 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 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 could maximize my time for profit.” The bottom line is that you are looking for the first type and you want to avoid the second type.
We’ll call the first type, the Bad Real Estate Agent. We’ll call the next type, the Good AGENT.
So what kind of characteristics does the Good Real Estate Agent have that the Good Real Estate Agent does not have?
1. The first characteristic is Patience. Bad Real Estate Agents will attempt to sell you a house quickly to get the money quickly. Do not buy 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 such as a salesman rather than providing you information.