Buying a house – The realistic approach
This article is not about the secrets of buying a rental property with no money and at half the market value of the home. I’m not Tom Vu or Don Lapre and I’m not in prison.
In Canada, the No Money Down Home used to exist, but no longer. Some banks and/or lenders have been willing to lend you the 5% down Haus kaufen payment so you don’t have to pay a penny out of pocket to buy a home. However, given the current financial climate with tightening credit restrictions, there will be no bank or lender in Canada that can do this.
Buying a house at half price used to be an option. At one point, foreclosures in Canada made it possible to sell foreclosed homes at rock-bottom prices. The new law, which has been in effect for many years, requires homes to be sold at the highest possible foreclosure price or lenders could be sued. As a result, foreclosure homes sometimes sell higher because Canadians have the misconception that foreclosure homes are a really good deal, which has the opposite effect. There are many people who have bought foreclosure homes because they thought they got a good deal and didn’t thoroughly check the true value of the home.
Well, to dispel the myths of making a quick buck when buying houses, there are still many things you need to consider before you get started.
Industry with sneakier sales tactics and money
If there’s ever an industry with sneakier sales tactics and money-motivated people, it’s real estate. As a buyer, you could spend $350,000 and everyone wants a piece. The realtors want a piece. The lenders want a piece. The lawyers want a piece and the sellers want a piece. No wonder there are so many scams in this industry.
The first thing to consider is the real estate agent. A real estate agent is supposed to act on your behalf to buy or sell the home. Both the home buyer and the home seller have their own real estate agent, referred to as the buyer’s real estate agent and the seller’s real estate agent.
In Canada, each real estate agent earns an average of 2.5% and sometimes 2% on home sales commission. Some real estate agents offer cashback rewards. Canadian real estate agents earn higher commissions than anywhere else.
Real estate agents are ethical
Don’t listen to their gimmicks about real estate agents being ethical. Where did the idea that every real estate agent off the street be ethical come from? Their claim is based on these tests they pass to become a real estate agent. Agents who pass a test do not mean they are ethical . It just means they can remember enough to pass the test.
OnHowever, the real reality is that real estate agents don’t make money unless the house is bought. The reality is that the real estate agent’s salary doesn’t really depend on giving you advice. The real estate agent’s job is to get the buyer to buy a home through them so they get paid!
As a result, there are two types of real estate agents with variations in between. Buying a house so I can move on to the next buyer (sucker) so I can maximize my win time.” The bottom line is you’re looking for the first type and you want to avoid the second type.
We call the first type, the bad real estate agent. We call the second type the good real estate agent.
So what qualities does the good real estate agent have that the good real estate agent doesn’t have?
- The first characteristic is patience. Bad real estate agents will try to sell you a house quickly to get the money quickly. Don’t buy a house without spending a lot of time looking at several different houses.
- The second characteristic is information. A good real estate agent must provide you with all the information you need to make the informed decision and we are not talking about their opinion. Real Estate’s opinion doesn’t matter. Realtors have data such as the history of the house for sale, nearby houses for sale, and type.
- The third characteristic is diligence. You will find out about this when you actually sign the contract to buy the house at a certain price. If you are interested in a property and want to buy the property at a specific price set by YOU, you need to set up a contract. The contract has at least three conditions that negate the sale of the home and a security deposit.
The usual three conditions are that the buyer can obtain financing, that house passports are checked and that the appraised value of the house is higher than the asking price. Generally, you want lenders to value the home so that you know the home’s fair value and lenders will only lend if you buy the home at fair market value.
The security deposit is an amount you provide Makler finden to protect the home from being sold to other buyers while you verify that these conditions are met. If these conditions are not met, you SHOULD get your deposit back.
The bad real estate agents want you to leave very few terms and a large deposit. This ensures that the house is more likely to be sold