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 house. 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, however, not anymore. Some banks and/or lenders were willing to lend you the 5% deposit so that you don’t have to pay a dime from your own pockets to purchase a house. However, given the current financial situation with tighter lending restrictions, you will have 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 includes been in placed for many years now require the homes be sold at optimum 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 are a really good deal causing it to get 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 shopping for homes, there are still many things you need to be aware of before starting.
If there exist ever a business with more sneaky sales tactics and money motivated people, it’s got to the true Estate industry. As a buyer, you will be dishing out $350 000 and everyone wants a piece. The Real AUCTIONS want a piece. The lenders want a piece. The lawyers want a bit and the sellers want piece. No wonder there are so many scams in this industry.
The first thing to be aware of is the Real Estate Agent. A Real Estate Agent is suppose to act in your stead to buy or sell the house. Both the buyer of the house and seller of the house will have their own Real Estate Agent called a Buyer’s AGENT and a Seller’s AGENT.
In Canada, each AGENT gets typically 2.5% and sometimes 2% for the commission of selling the house. Some Real Estate Agents provide cash back rewards. Canadian REALTORS gets higher commission than somewhere else. In United States, their REALTORS only get 1% of the commission and their homes are actually 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 listen to their gimmicks on Real Estate Agents are ethical. (http://www.howrealtorshelp.ca) Where do they get the idea any 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 can remember enough to pass the test.
One would believe it should be the true 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 safeguard them and offer them advice and for me, the ethical Real Estate Agent should do that. However, the true reality is that Real Estate Agents do not make money unless if the home is bought. The reality is that the true Estate Agent’s salary isn’t truly dependent on providing you advice. The Real Estate Agent’s job is to get the buyer to get a home through them so they can get paid!
Due to this, what eventually ends up happening, are two forms 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 buy 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 looking 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 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 try to sell you a home quickly to find the money quickly. Do not purchase a house without spending lots of time looking at a number of different homes. Be home inspection of tactics such as Real Estate Agents claiming it’s the perfect and acting such as a salesman rather than providing you information.