This short article isn’t concerning the secrets of purchasing a rental property for no money down and half the price tag on 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 ready to lend you the 5% down payment so that you don’t have to pay for a dollar out of your personal pockets to purchase a home. However, given the present financial situation with tighter lending restrictions, there will be no bank or lenders who are 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. The brand new law, which has been doing placed for quite some time now require the homes be sold at the highest 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 deal causing it to have a reverse affect. There has been many people buying foreclosed homes believing they got much 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, there are still several things you will need to keep yourself updated of before starting.
If there exist ever an industry with more sneaky sales tactics and money motivated people, it has got to the Real Estate industry. As a buyer, you could 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 there are so many scams in this industry. East London for sale
The very first thing to keep yourself updated of is the Real Estate Agent. A Real Estate Agent is suppose to do something on your own behalf to purchase or sell the home. Both the client of the property and seller of the property could have their very 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 an average of 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 smallest amount of educated of the parties mixed up in buying home transaction, they seem to be getting the largest little bit of the pie.
Do not listen to 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 based on these tests which they pass becoming a Real Estate Agent. Agents passing a test doesn’t meant hey are ethical. It only means they are able to remember enough to pass the test.
One would 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 depend on the Real Estate Agent to protect them and provide them advice and in my opinion, the ethical Real Estate Agent must do that. However, the actual 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 providing you advice. The Real Estate Agent’s job is to obtain the client to purchase a home through them to allow them to receive money!
Consequently with this, what ends up happening, are two forms of Real Estate Agents with variations in between. The initial type is 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 2nd type is the “I want to get the client to purchase a home quickly in order that I will move ahead to another location buyer (sucker) in order that I will maximize my time for profit.” The underside line is that you are trying to find the very first type and you intend to steer clear of the second type.