How To Lose Money With REAL ESTATE AGENT
This article is not concerning the secrets of buying accommodations property for no money down and half the price of the market value of the house. I’m not Tom Vu or Don Lapre and I am 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% deposit so that you need not pay a dime out of your own pockets to purchase a home. However, given the current finances with tighter lending restrictions, you will have no bank or lenders who is able to do that in Canada.
The buying home for half price did use to exist as well. At one point, foreclosures in Canada would allow foreclosed homes to be sold at rock bottom prices. The new law, which has been in placed for quite some time now require the homes be sold at optimum price for foreclosed homes if not the lenders could possibly be sued. Hence, sometimes foreclosed crowdfunding platform provider sell higher because Canadians have the misconception that foreclosed homes certainly are a really good deal causing it to have a reverse affect. There have been many people buying foreclosed homes believing they got much and not performing a thorough check as to the actual value of the house.
Now, clearing out the quick money maker myths of shopping for homes, there are still a lot of things you need to be alert to before starting.
If there exist ever a business with an increase of sneaky sales tactics and money motivated people, it has got to the Real Estate industry. As a buyer, you will be dishing out $350 000 and everyone wants a bit. The Real Estate Agents want a piece. Lenders want a bit. The lawyers want a piece and the sellers want piece. No wonder there are so many scams in this industry.
The first thing to be aware of is the Real Estate Agent. AN AGENT is suppose to act on your behalf to buy or sell the home. Both the buyer of the house and seller of the home will have their own AGENT called a Buyer’s 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 house. Some REALTORS provide cash back rewards. Canadian REALTORS gets higher commission than somewhere else. In United States, their REALTORS only get 1% of the commission and their homes are in fact much cheaper. Even though REALTORS are the least educated of the parties involved in the buying home transaction, they seem to be getting the biggest little bit of the pie.
Do not listen to their gimmicks on REALTORS are ethical. (http://www.howrealtorshelp.ca) Where do they get the idea any Real Estate Agent off the road is ethical. Their claim is founded on these tests they pass to become a AGENT. Agents passing a test does not meant hey are ethical. It only means they are able to remember enough to pass the test.
One would believe it ought to be the true Estate Agent’s job to greatly help the buyer ensure the home is of value. Rightly so, many buyers depend on the Real Estate Agent to protect them and offer them advice and in my opinion, the ethical AGENT should do that. However, the true reality is that Real Estate Agents do not make money unless if the home is purchased. The reality is that the true Estate Agent’s salary is not truly dependent on giving you advice. The Real Estate Agent’s job would be to get the buyer to get a home through them to allow them to get paid!
Because of this, what ends up happening, are two types of REALTORS with variations in between. The first type is the honest agent with the belief “EASILY work hard and treat my buyer right, the buyer will come back again to buy more homes from me. The next type is the “I have to get the buyer to get a house quickly in order that I can move on to another buyer (sucker) so that I can maximize my time for profit.” The end result is that you are searching for the first type and you want to avoid the second type.
We’ll call the first type, the Bad Real Estate Agent. We’ll call the second type, the Good Real Estate Agent.
So what kind of characteristics does the Good AGENT have that the Good Real Estate Agent does not have?
1. The initial characteristic is Patience. Bad Real Estate Agents will try to sell you a home quickly to obtain the money quickly. Do not purchase a house without spending a lot of time looking at a number of different homes. Be cautious of tactics such as Real Estate Agents claiming it is the perfect and acting such as a salesman rather than providing you information.