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 am not in jail.
In Canada, the no money down home did use to exist, however, the hill at one north not anymore. Some banks and/or lenders were willing 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 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 as well. At one point, foreclosures in Canada allows 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 excellent deal causing it to get a reverse affect. There were lots of 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 shopping for homes, there are still a lot of things you need to be aware of before starting.
If there exist ever a business with an increase of sneaky sales tactics and money motivated people, it has got to the Real Estate industry. As a buyer, you could be dishing out $350 000 and everyone wants a piece. The Real AUCTIONS want a piece. 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 AGENT. A Real Estate 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 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 anywhere else. In United States, their REALTORS only get 1% of the commission and their homes are actually much cheaper. Even though REALTORS are the least educated of the parties involved in the buying home transaction, they seem 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 Real Estate Agent off the road is ethical. Their claim is based 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 Real Estate Agent’s job to greatly help the buyer ensure the home is of value. Rightly so, many buyers be determined by the Real Estate Agent to protect them and offer them advice and in my opinion, the ethical Real Estate Agent should do that. However, the true reality is that Real Estate Agents 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 is to get the buyer to get a home through them so they can get paid!
Because of this, what ends up happening, are two forms of Real Estate Agents with variations in between. The first type is the honest agent with the belief “EASILY work hard and treat my buyer right, the customer will come back again 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 another buyer (sucker) so that I can maximize my time for profit.” The bottom line is that you are looking for the first type and you also want to steer clear of the second type.
We’ll call the initial type, the Bad 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 AGENT does not have?
1. The first characteristic is Patience. Bad REALTORS will attempt to sell you a house quickly to find 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 like a salesman rather than providing you information.g