This article is not concerning the secrets of buying a rental 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’m 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% deposit 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 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 allows 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 the highest possible 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 excellent deal causing it to get a reverse affect. There have been lots of people buying foreclosed homes believing they got a good deal and not performing 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 many 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 true Estate industry. As a buyer, you will be dishing out $350 000 and everyone wants a bit. The Real Estate Agents 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 understand is the 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 house will have their own Real Estate Agent called a Buyer’s Real Estate 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 return rewards. Canadian REALTORS gets higher commission than somewhere else. In United States, their Real Estate Agents 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 mixed up in buying home transaction, they appear to be getting the biggest piece of the pie.
Do not pay attention to their gimmicks on REALTORS are ethical. (http://www.howrealtorshelp.ca) Where do they obtain the idea any AGENT off the road is ethical. San Francisco Their claim is based on these tests they pass to become a Real Estate 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 must be the true Estate Agent’s job to help the buyer ensure the home is of value. Rightly so, many buyers be determined by the Real Estate Agent to safeguard them and provide them advice and in my opinion, the ethical Real Estate Agent should do that. However, the real 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 providing you advice. THE TRUE Estate Agent’s job is to get the buyer to get a home through them so they can get paid!
Due to this, what ends up happening, are two forms 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 again to buy more homes from me. The second 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 end result is that you are searching for the first type and you also 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 Real Estate Agent.
So what sort 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 REALTORS will try to sell you a house quickly to find 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 just like a salesman rather than offering you information.