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 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, however, 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 from realmove your own pockets to purchase a house. 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 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 really good 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 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. Lenders want a bit. The lawyers want a bit and the sellers want piece. No wonder you can find so many scams in this industry.
The first thing to understand is the 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 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 house. Some REALTORS 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 Real Estate Agents 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 pay attention to their gimmicks on REALTORS are ethical. (http://www.howrealtorshelp.ca) Where do they get the idea any Real Estate Agent off the road is ethical. Their claim is founded on these tests they pass to become a Real Estate 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 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 protect 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 purchased. The reality is that the true Estate Agent’s salary is not truly dependent on giving you advice. The Real Estate Agent’s job is to get the buyer to buy a home through them so they can get paid!
Due to 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 customer will come back to buy more homes from me. The second type is the “I have to get the buyer to buy a house quickly so that I can move on to another buyer (sucker) so that I could maximize my time for profit.” The end result is that you are searching for the first type and you also want to steer clear of the second type.
We’ll call the first type, the Bad 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 attempt to sell you a home quickly to achieve the money quickly. Do not purchase 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.