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 ready to lend you the 5% down payment so that you don’t have to pay a dime out of your own pockets to purchase a house. However, given the current finances 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 as well. At 10200 boul de l’acadie , 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 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 were many people buying foreclosed homes believing they got a good deal 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 alert to before starting.
If there exist ever an industry 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 piece 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. AN AGENT is suppose to act on your behalf to buy or sell the house. Both the buyer of the home and seller of the home will have their own Real Estate Agent called a Buyer’s Real Estate Agent and a Seller’s AGENT.
In Canada, each AGENT gets an average of 2.5% and sometimes 2% for the commission of selling the home. Some Real Estate Agents provide cash back 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 are the least educated of the parties mixed up in buying home transaction, they appear 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 obtain the idea any Real Estate Agent off the street is ethical. Their claim is based 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 must be the Real Estate Agent’s job to greatly help the buyer ensure the home 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 Real Estate Agents do not make money unless if the home is bought. The reality is that the Real Estate Agent’s salary is not truly dependent on giving you advice. THE TRUE Estate Agent’s job would be to get the buyer to buy a home through them so they can get paid!
As a result of this, what eventually 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 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 AGENT. We’ll call the second type, the Good AGENT.
So what sort of characteristics does the Good Real Estate Agent have that the Good AGENT does not have?
1. The initial characteristic is Patience. Bad REALTORS will attempt to sell you a home quickly to obtain the money quickly. Do not buy a house without spending considerable time looking at several different homes. Be cautious of tactics such as Real Estate Agents claiming it is the perfect and acting such as a salesman rather than providing you information.