This article isn’t in regards to the secrets of purchasing a rental property for no money down and half the buying price of the market value of the house. I’m 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% down payment so that you don’t have to pay for a cent out of your personal pockets to buy a home. However, given the existing financial situation with tighter lending restrictions, you will have no bank or lenders who are able to do that in Canada.
The buying home for half price did use to exist as well. At one time, foreclosures in Canada will allow foreclosed homes to be sold at rock bottom prices. The new law, which has been doing placed for many years now require the homes be sold at the best possible price for foreclosed homes otherwise the lenders might be sued. Hence, sometimes foreclosed homes sell higher because Canadians have the misconception that foreclosed homes are an excellent East London for rent deal causing it to truly have a reverse affect. There has been many individuals buying foreclosed homes believing they got much and not carrying out a thorough check regarding the actual value of the home.
Now, clearing out the quick money maker myths of purchasing homes, you will find still many things you need to be aware of before starting.
If there exist ever an industry with an increase of sneaky sales tactics and money motivated people, it must the Real Estate industry. As a customer, you can be dishing out $350 000 and everyone wants a piece. The Real Estate Agents want a piece. The lenders want a piece. The lawyers want an item and the sellers want piece. No surprise you will find so many scams in this industry.
The first thing to be aware of could be the Real Estate Agent. A Real Estate Agent is suppose to behave in your behalf to get or sell the home. Both the client of the home and seller of the home will have their particular 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 Real Estate Agents provide cash back rewards. Canadian Real Estate Agents gets higher commission than anywhere else. In United States, their Real Estate Agents only get 1% of the commission and their homes are now actually much cheaper. Although Real Estate Agents are the least educated of the parties active in the buying home transaction, they appear to be getting the greatest little bit of the pie.
Do not listen for their gimmicks on Real Estate Agents are ethical. Where do they get the idea any Real Estate Agent off the road is ethical. Their claim is founded on these tests which they pass to become a Real Estate Agent. Agents passing a test does not meant hey are ethical. It only means they can remember enough to pass the test.
You might believe it should be the Real Estate Agent’s job to greatly help the client ensure the house is of value. Rightly so, many buyers rely on the Real Estate Agent to protect them and provide them advice and for me, the ethical Real Estate Agent have to do that. However, the actual the reality is that Real Estate Agents do not earn money unless if the house is purchased. The stark reality is that the Real Estate Agent’s salary isn’t truly determined by giving you advice. The Real Estate Agent’s job is to obtain the client to get a home through them so they can receive money!
Consequently of the, what ultimately ends up happening, are two forms of Real Estate Agents with variations in between. The first type could be the honest agent with the belief “If I work hard and treat my buyer right, the client will get back to buy more homes from me. The next type could be the “I have to get the client to get a house quickly so that I could move ahead to another buyer (sucker) so that I could maximize my time for profit.” Underneath line is that you will be looking for the initial type and you want to steer clear of the second type.
