Tom Loi asked:


house -  The realistic approach

This article is not about the secrets of buying a rental property for no money down and half the price of the market value of the house. I am 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 willing to lend you the 5% down payment so that you don’t have to pay a dime out of your own pockets to purchase a home. However, given the current financial situation with tighter lending restrictions, there will be no bank or lenders who can 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 many years now require the homes be sold at the highest possible price for foreclosed homes or else the lenders could be sued. Hence, sometimes foreclosed homes sell higher because Canadians have the misconception that foreclosed homes are a really good deal causing it to have a reverse affect. There have been many 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 buying homes, there are still many things you need to be aware 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 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. A Real Estate Agent is suppose to act on your behalf to buy or sell the home. Both the buyer of the home and seller of the home 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 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. Even though Real Estate Agents are the least educated of the parties involved in the buying home transaction, they seem to be getting the biggest piece of the pie.

Do not listen to mls.ca and their gimmicks on Real Estate Agents are ethical. (http://www.howrealtorshelp.ca/swf/). Where do they get the idea any Real Estate Agent off the street is ethical. Their claim is based on these tests that they pass to become 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.

One would believe it should be the Real Estate Agent’s job to help the buyer ensure the home 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 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 Real Estate Agent’s salary is not truly dependent on giving you advice. The Real Estate Agent’s job is to get the buyer to buy a home through them so they can get paid!

As a result of this, what ends up happening, are two types 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 buyer will come back to buy more homes from me. The second type is the “I need to get the buyer to buy a house quickly so that I can move on to the next buyer (sucker) so that I can maximize my time for profit.” The bottom line is that you are looking 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 Real Estate Agent have that the Good Real Estate Agent does not have?

1. The first characteristic is Patience.

Bad Real Estate Agents will attempt to sell you a home quickly to get the money quickly. Do not buy a house without spending a lot of time looking at several different homes. Be careful of tactics such as Real Estate Agents claiming it is the perfect and acting like a salesman rather than providing you information.

2. The second characteristic is information.

A good Real Estate Agent needs to provide you all the information to let you make the informed decision and we are not talking about their opinion. Real Estate’s opinion does not matter. Real Estate Agents have data such as the history of the house being sold at, homes being sold near the area and type. A Real Estate Agent should be able to provide you with a compilation of official documents that tells you these kinds of data to let YOU make an informed decision.

3. The third characteristic is care.

You will know this during the actual signing of the contract to purchase the home at a certain price. Once you become interested in a property and want to buy the property at a certain price set by YOU, you have to write up a contract. The contract consist atleast three conditions that will null the sale of the home and a security deposit.

The common three conditions are, buyer can get financing, the home passes inspection and the appraisal value of the home is above the price to be purchased. Generally, you will want the lenders to appraise the home so that you know the fair value of the home and the lenders would only lend of you are buying the home at fair market value.

The security deposit is an amount you will provide to lock the home from being sold to other buyers while you perform to checks to see whether these conditions have been met. If these conditions are not met, then you SHOULD get your security deposit back.

The Bad Real Estate Agents will want to you provide very few conditions and a big security deposit. Doing so ensure the home is more likely to be sold.

Do NOT go through the internet and pick the first agent you see or the agent that has the most advertisements. They are just spending marketing money which they intend to recover from you. I especially find the ones that are top ranked search engines to be the most conniving, especially the Mississauga location!!!

If you have any more questions or concerns, feel free to e-mail me at admin@freerentalads.ca

You are also certainly welcome to e-mail me your good and bad home buying experiences. I may or may not chose to post them up.



Jorge

Escapeso Austin Real Estate asked:


There are some myths about real estate agents, many of which are not so flattering. But when it comes down to it, real estate agents are not too out there, and there is a logical explanation to each misconception. Let’s straighten out a couple myths and facts.

Myth #1: They have big hair.

Fact: Though occasionally real estate agents do have big hair, most are regular people who get up in the morning just like you do, and go to work just like you do. Many real estate agents, in fact, are going bald due to stress related hair loss. Same with the fancy dagger-shaped manicures; in actuality, many real estate agents have bitten their nails down to nubs.

Myth #2: Real Estate Agents drive luxury cars while talking on their cell phones.

Fact: Itâ??s true that real estate agents are often trying to do too many things at once, but they like to be careful about it. And though real estate agents would like to make a good impression on you, more often than not they drive Hondas and Toyotas and hope that their hard work will sell you, not their Lexus.

Myth #3: Real Estate Agents know your area.

Fact: Just like normal people, real estate agents canâ??t know everything. Though they do spend a lot of time driving around town, they canâ??t be in all places at once, and they themselves probably have preferences for one neighborhood versus another. Make it clear to your realtor what kind of area you want to live in, and they can help you look within that section of town.

Myth #4: Real Estate Agents live outside of time.

Fact: Real estate agents have lives too, and those lives happen to take place in the same physical realm as yours does. While it might seem like they spend a strangely disproportionate chunk of time speaking with you, they are actually trying to be as time-conscious as possible, so that you can move more quickly into your home and they can move more quickly to helping their next client.

Myth #5: Real Estate Agents just want your money.

Fact: What real estate agents actually want is an easy life. They want to help you find a home you love, and they want to make their (often small) bit of commission off of it (and thatâ??s off the sale, not out of your pocket). They do not want your soul or your firstborn, just some patience, consideration, and a positive home-buying experience for all.



Marcus

Florin Ciobanu asked:


When purchasing or selling property, the first thing you will want to ask is “How do I find a good real estate agent?” There are many things to consider when looking for a real estate agent.

You do not want someone who has a license from XYZ, or worse yet, someone with no license at all. There are many things to look out for when selecting your future team mate on your quest to finding the perfect home. Listed below are ways to ease into one of the most important deals of your life, buying and selling a home.

A real estate agent is your right hand so to speak when acquiring a home. You should be able to trust this person, reply on them as well as have them understand your needs. Moreover, it is imperative they have the time and energy to dedicate to your search. Asking friends, how do I find a good real estate agent? is a great place to start.

Shortening the List

It comes as no surprise that real estate agents come a dime a dozen. During the time when real estate was booming, everyone thought they could strike it rich in the real estate world. Actually, many did; even the ones who did not know what they were doing. The problem lies in the fact that the market has changed drastically and now those people are lurking in low real estate agent rankings or non-existent.

Watch out for those real estate agents looking to make a quick buck. Do not pay a cent until you have closed the deal. It will be included in closing costs. If you are selling your home and a realtor wants a fee up front, that is your red flag to steer clear of that agent. A realtor’s commission should be based on if they can sell the house; not if they give it their “best” try.

If the real estate agents you are looking to conduct transactions with are always on the phone, never return your calls or even if they do but not timely, ten to one they have too much of a work load as it is. This is a huge sign to show you will not be getting the individualized attention you need. When buying and selling a home, it is all about how your real estate agent works for you; not how hard you have to work to get their attention.

Do they have a track record? The internet is a wonderful tool. If the real estate agent is in touch with the market, they will have a website. They will also have an email that they check regularly. You can research reviews and comments about realtors online through many sources. Type the name of the realtor in the search box and look at results. Typically, you will see about five to ten reviews for a smaller real estate agent and more for larger groups or popular agent.

It is all about how a person markets themselves. Look at the angle they are trying to approach. Are they trying to attract investors or the homeowners? This will tell you a lot about where their head is. Take the time to research other sites and look for more specific information before you decide to select a real estate agent. Read on to answer the most important question, “How do I find a good real estate agent?”



Catherine