This informative article is not about the secrets of purchasing a rental property for no money down and half the buying price of the marketplace 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, not anymore. Some banks and/or lenders were prepared to lend you the 5% down payment so you don’t have to pay a cent out of your pockets to get a home. However, given the current financial situation with tighter lending restrictions, there will be no bank or lenders who are able to accomplish 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 in placed for several years now require the homes be sold at the best possible price for foreclosed homes or else the lenders could possibly 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 carrying out a thorough check regarding actual value of the home.
Now, clearing out the quick money maker myths of purchasing homes, you can find still several things you need to be aware of before starting.
If there exist ever an industry with increased sneaky sales tactics and money motivated people, it has got to the Real Estate industry. As a buyer, you can be dishing ou estate agents in bow $350 000 and everyone wants a piece. The Real Estate Agents want a piece. The lenders want a piece. The lawyers want a piece and the sellers want piece. No surprise you can find so many scams in this industry.
The very first thing to be aware of could be the Real Estate Agent. A Real Estate Agent is suppose to act on your behalf to get or sell the home. Both the client of the home and seller of the home can 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 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 in reality much cheaper. Although Real Estate Agents are the smallest amount of educated of the parties involved in the buying home transaction, they seem to be getting the biggest little bit of the pie.
Don’t listen with their gimmicks on Real Estate Agents are ethical. Where do they get the idea any Real Estate Agent off the street is ethical. Their claim is founded on these tests that they pass to become a Real Estate Agent. Agents passing an examination does not meant hey are ethical. It only means they are able to remember enough to pass the test.
You might believe it ought to be the Real Estate Agent’s job to greatly help the client ensure the home is of value. Rightly so, many buyers rely on the Real Estate Agent to guard them and provide them advice and for me, the ethical Real Estate Agent must do that. However, the true the reality is that Real Estate Agents don’t generate income unless if the home is purchased. The stark reality is that the Real Estate Agent’s salary is not truly influenced by giving you advice. The Real Estate Agent’s job is to have the client to get a house through them for them to get paid!
As a result of the, what ultimately ends up happening, are two forms of Real Estate Agents with variations in between. The very first type could be the honest agent with the belief “If I work hard and treat my buyer right, the client will return to buy more homes from me. The next type could be the “I need to get the client to get a home quickly so that I can move ahead to another location buyer (sucker) so that I can maximize my time for profit.” The underside line is that you will be looking for the initial type and you intend to steer clear of the second type.