Exactly what Your own Purchaser’s Actual Estate Agent Will not Let you know — Component 1
This article isn’t about the secrets of purchasing a rental property for no money down and half the price of the marketplace 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 cover a cent out of your pockets to buy a home. However, given the present financial situation with tighter lending restrictions, you will see no bank or lenders who is able to do this in Canada.
The buying home for half price did use to exist as well. At one point, foreclosures in Canada will allow foreclosed homes to be sold at rock bottom prices. East London for rent The brand new law, which has been around placed for quite some time now require the homes be sold at the greatest 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 great deal causing it to truly have a reverse affect. There have been lots of people buying foreclosed homes believing they got a good deal and not doing a thorough check as to the actual value of the home.
Now, clearing out the quick money maker myths of purchasing homes, you will find still a lot of things you will 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 might 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 very first thing to be aware of is the Real Estate Agent. A Real Estate Agent is suppose to do something on your behalf to buy or sell the home. Both the customer 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 on average 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 actually much cheaper. Although Real Estate Agents are the least educated of the parties mixed up in buying home transaction, they seem to be getting the largest piece of the pie.
Do not listen for their gimmicks on Real Estate Agents are ethical. Where do they get the concept any Real Estate Agent off the road is ethical. Their claim is based on these tests which they pass becoming 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 ought to be the Real Estate Agent’s job to simply help the customer ensure the house 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 must do that. However, the real reality is that Real Estate Agents don’t earn money unless if the house is purchased. The truth is that the Real Estate Agent’s salary isn’t truly dependent on giving you advice. The Real Estate Agent’s job is to have the customer to buy a property through them to allow them to receives a commission!
As a result with this, what ends up happening, are two forms of Real Estate Agents with variations in between. The first type is the honest agent with the belief “If I work hard and treat my buyer right, the customer will return to buy more homes from me. The second type is the “I need to get the customer to buy a house quickly in order that I can move ahead to another location buyer (sucker) in order that I can maximize my time for profit.” The bottom line is that you’re looking for the initial type and you want to prevent the second type.