What Your Buyer’s Real Estate Agent Won’t Tell YouPosted by: akad sun | Posted on: September 11, 2021
Buying a house – A realistic approach
This article is not about the secret to buying a rental property with no down payment and half the market price of the house. I’m not Tom Vu or Don Lapre and I’m not in jail.
In Canada, cashless advances used to exist, but not anymore. Some banks and/or lenders are willing to give you a 5% down payment so you don’t have to spend a dime to buy a house. However, given the current financial situation with stricter lending restrictions, no bank or lender can do so in Canada.
Buy a house at half price first. At one point, foreclosures in Canada would allow foreclosed homes to be sold at rock-bottom prices. The new law, which has been in effect for years now requires homes to be sold at the highest possible price for repossessed homes or lenders can be sued.
Therefore, sometimes foreclosed homes sell for a higher price because Canadians have the misconception that foreclosed homes are so good they have the opposite effect. There are many people who buy foreclosed homes believing they are getting a good price and not doing a thorough inspection of the real value of the home.
Now, dispelling the myth of making money fast buying a house, there’s still a lot you need to know before you get started.
If ever there was an industry with more devious sales tactics and people driven by money, it has entered the Real Estate industry. AKDSEO merupakan agency digital marketing yang fokus melayani jasa Backlinks dan Link building website, termasuk di dalamnya Jasa Menaikkan DA ( Domain Authority) As a buyer, you can spend $350,000 and everyone wants it. Real Estate Agents want a piece. The lender wants a piece. Lawyers want a piece and sellers want a piece. No wonder there are so many scams in this industry.
The first thing to look out for is a Real Estate Agent. Real Estate Agents are supposed to act on your behalf to buy or sell a home. Both home buyers and home sellers will have their own Real Estate Agents called Buyer Real Estate Agents and Real Estate Selling Agents.
In Canada, each Real Estate Agent earns an average of 2.5% and sometimes 2% of the commission on the sale of the home. Some Real Estate Agents give cash back prizes. Canadian Real Estate Agents earn higher commissions than anywhere else. In the United States, their Real Estate Agent earns only 1% of the commission and their house is actually a lot cheaper. While Real Estate Agents are the least educated of the parties involved in a home purchase transaction, they seem to get the lion’s share of the pie.
Don’t listen to their gimmicks about Real Estate Agents ethically. Where did they get the idea that any Real Estate Agent on the street is ethical. Their claim is based on the tests they went through to become Real Estate Agents. Agents who pass the test do not mean they are ethical. It just means they remember enough to pass the test.
One would believe that it is the job of a Real Estate Agent to help the buyer ensure that his home is of value. It’s true, many buyers rely on Real Estate Agents to protect them and give them advice and in my opinion, an ethical Real Estate Agent should. However, the reality is that Real Estate Agents make no money unless the house is bought. The reality is that Real Estate Agent salaries don’t really depend on giving you advice. Real Estate Agent’s job is to get buyers to buy homes through them so they can get paid!
As a result, there are two types of Real Estate Agents with variations in between. The first type is an honest agent with the belief “If I work hard and treat my buyers right, buyers will come back to buy more homes from me. The second type is “I need to get buyers to buy homes quickly. so I can move on to the next buyer (sucker) so I can maximize my time to make a profit.” The point is that you are looking for the first type and you want to avoid the second type.
We will call the first type, the Bad Real Estate Agent. We will call the second type, Good Real Estate Agents.
So, what traits does a Good Real Estate Agent have that a Good Real Estate Agent lacks?
1. The first trait is Patience. Bad Real Estate Agents will try to sell you a house quickly for quick money. Don’t buy a house without spending a lot of time looking at a few different homes. Watch out for tactics like Real Estate Agents who claim it’s perfect and act like a salesperson rather than giving you information.
2. The second characteristic is information. A good Real Estate Agent needs to provide you with all the information so that you can make the right decision and we don’t talk about their opinion. Real Estate opinion doesn’t matter. Real Estate agents have data such as history of homes for sale, homes for sale in the area and type. Real Estate Agents should be able to provide you with a compilation of official documents telling you this type of data to enable YOU to make the right decisions.
3. The third characteristic is caring. You will find this out during the signing of a contract to buy a house for a certain price. Once you are interested in a property and want to buy the property at a certain price YOU specify, you must enter into a contract. The contract consists of at least three conditions that will invalidate the sale of the home and a security deposit.
The three general conditions are, the buyer can get financing, the house passes the inspection and the home appraisal value is above the price to be purchased. Generally, you want the lender to value the home so that you know the fair value of the home and the lender will only lend you to buy a home at fair market value.
The security deposit is the amount you will provide to lock the house from selling it to another buyer when you do an inspection to see if these requirements have been met. If these conditions are not met, then you MUST get your security deposit back.
Bad Real Estate Agents want you to provide very few conditions and a large security deposit. Doing so ensures the home is more likely to sell.
DO NOT go online and choose the first agency you see or the one with the most ads. They only spend marketing money they want to recover from you.