February 16th, 2010
Real estate is a big business and everyone seems to want to invest in real estate. You keep hearing a lot of stories about how people made a quick buck by investing in real estate. There are stories about people who made $50000 in a fortnight by making the right kind of investment in real estate. Every now and then, newspapers keep coming up with statistics about the appreciation in the real estate prices. There seems a mad rush for investing in real estate (and this gets even bigger when the mortgage interest rates are falling). However, not everyone has the time, money and expertise to be able to profitably invest in real estate. So what does one do? Is there any other option?
Yes, there is another way of investing in real estate and that is through Real Estate Investment Trust. Real Estate Investment Trust is an organisation that invests in real estate as a full fledged business. By investing in a Real Estate Investment Trust, you can become part of the real estate investment party and enjoy profits (of course, the assumption here is that the Real Estate Investment Trust is good and professionally managed).
Investing in Real Estate Investment Trust is very easy too. You can just buy Real Estate Investment Trust shares which trade on all major exchanges. There are certain laws governing the Real Estate Investment Trusts that help them avoiding the tax at corporate levels e.g. it is mandated that Real Estate Investment Trust’s portfolio has 75 percent of investment in real estate. Moreover, 75% of the income of Real Estate Investment Trust must be from rents or mortgage interest. There are various types of Real Estate Investment Trusts. Some Real Estate Investment Trusts own properties themselves and hence feed on the rental income from those properties. Some others indulge in providing only mortgage loans or go for mortgage backed securities. Then there are Real Estate Investment Trusts which do both i.e. rental focussed investments and mortgage based investments.
There are a number of Real Estate Investment Trusts operating in the market and a lot of these Real Estate Investment Trusts are doing good business. By investing in Real Estate Investment Trust you are basically investing in real estate without actually buying a property yourself. This is one easy way of investing in real estate (and much safer too). You must surely evaluate this option for your real estate investments.
Tags: About, Estate, Investment, Real, reits, Trusts
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February 13th, 2010
The most common ways of looking for real estate listings are through the Internet and through your local newspapers. No matter what you are looking for, whether it is a home for you and your family to live in or real estate to invest money in, real estate listings will be the prime way for you to find the real estate that is best for you. To find real estate listings, you can use both the Internet and newspapers. It is up to you which one you choose.
Newspaper real estate listings
Looking at real estate listings in the newspaper is one of the most traditional ways to find real estate to purchase. Today, it still stands as one of the most used ways to look over real estate listings. Unfortunately, looking through real estate listings in newspapers can become very time consuming. You will find yourself flipping through pages. After reading through them all, you have to go back and find the ones that fit your needs the most.
Once you find the real estate listings that fit what you are looking for, you have to take the time to write down the contact information and then call them and make an appointment to view the property. Sometimes the real estate listings do not include pictures, which can be a total setback. Newspaper real estate listings are updated every week or so. This means that real estate you are interested in may not be available once you get around to it. If someone were to purchase the real estate before you, you have no way of knowing it before you waste your time.
Internet real estate listings
Since the Internet has grown more and more popular, finding real estate listings online has become one of the easiest and quickest ways to find real estate. The best thing about internet real estate listings is that they are updated two or three times a week. This makes it easier for those who are looking for real estate to buy because they do not have to worry about the real estate being unavailable or already sold.
Also with internet real estate listings, you will be able to few high-resolution photographs of the real estate you are interested in, instead of relying on a small black and white photo out of the newspaper. This allows you to truly see what the real estate looks like. Finding the perfect real estate for you is easy online. You do not have to go through lists and lists of listings to find one that is suitable for you because with a simply click of your mouse, you could find the real estate you are looking for.
Online, you can pick certain criteria such as how large the real estate is, where it is located, etc. This cuts down on the amount of time spent looking for real estate that fits your criteria. With online real estate listings, you do not have to worry about finding contact information. Most times, the website will provide you with a service to contact a realtor, or you can easily print out the real estate ad.
Tags: Estate, Listings, Newspaper, Online, Real
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February 13th, 2010
If you are considering buying a new home there are many realtors and property agents in Florida, those can help by introducing you to some of the top real estate agency and realtors throughout the United States for your chosen. Contact Florida real estate agents to sale or buy homes, lands, commercial property or industrial properties and a free listing service for real estate brokers. Florida real estate agents specialize in commercial real estate, country club, and condos for sale if you are in the market to buy a home in Florida. All you need to do is to contact a Florida real estate agent, and it you will be able to get all the information that you need. Florida real estate agents provide multiple listings for the buy and sell property such as commercial property, business spaces and residential property for their clients.
How to choose property in United States?
If you are looking for the commercial property in United States of America, then always look for the realtors on whom you can trust. Real estate agents in Fl, helps you to search for the dream land for your needs. Florida real estate brokers and investment advisors specialize in commercial real estate property lending. You may contact top realtors and brokers for the commercial property in Florida.
“Know where to buy a house in Florida” we listed best property listings and get our customers to use them, and watch them turn their campaigns into sales then they come back to us.
Palm Beach Florida real estate advisors offers a consultative approach to clients rather than a transaction driven methodology investors and companies involved in a site selection decision. Florida real estate agents because choosing the right Florida real estate agent is the most important decision you will make when buying or a selling a home top agents biz has partnered with the top Florida.
Summary; Florida’s professional commercial real estate agents or brokerage companies provides you access to the best commercial real estate and property listings.
Tags: Agents, Estate, Florida, Real
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February 10th, 2010
Short ones, tall ones, fat ones, skinny ones, good ones, bad ones, sad ones, happy ones. The list could go on and on forever, and starts to sound like a Dr. Seuss story. Like in any profession, you will find a wide variety of people who fit into the Sandpoint Idaho real estate agents category. They are professionals who are there to serve clients buy and sell real estate, and there are a lot of them.
Sandpoint Idaho is a happy place. Good schools, modern shopping, beautiful scenery and lots of recreational opportunities. Some quick research reveals that there are hundreds of Sandpoint Idaho real estate agents. Since North Idaho is such a great place to live it makes sense that there would be plenty of professionals to help people come and go. Some agents focus on transactions in raw land, others on homes, others on commercial. Any prospective buyer or seller can find an agent to help them with what they need. If you are more comfortable dealing with a nationally franchised real estate company you can easily find that. If you’d rather work with a smaller, more private agency, you can do that as well. No matter what your preference, Sandpoint, Idaho real estate agents are going to be able to help make your real estate goals and dreams come true.
Here is a list of some of the agencies in or near Sandpoint, just to name a few:
Now let’s face it, some people make good agents and others don’t. I have experienced both good and bad Sandpoint Idaho real estate agents. Years ago, when I was renting a house that was on the market, I had a situation that bugs me to this day. The real estate agent came to the house when we weren’t home to show it to a prospective buyer. For whatever reason he didn’t have a way in to the main house, but knew that there was a key in the garage / shop. He had his little boy with him so he got creative. An open window in the shop area allowed him to lower his kid into the room, and unfortunately down on to a balsa wood RC airplane that I had been building. The kid stepped on the wing and broke a piece off. They got what they needed and left, leaving me a little note that said, “No key, got one from shop, sorry about plane.” I called him about it and he told me that’s what happens sometimes. That’s it! No apology, no offer to remunerate me. I lost some respect that day for that agent.
But, I realize that not all Sandpoint, Idaho real estate agents are that way by any means. In fact, one of the best business experiences I’ve ever had came from working with an agent that was a real pro. She constantly kept us informed, did everything possible to ease our concerns and stresses along the way through negotiations, and in the end even gave us some wonderful house warming gifts.
If I were buying or selling real estate in the Sandpoint area, and needed an agent today, I would do some careful research first. I would consider the Sandpoint Idaho real estate agents, their reputations, how satisfied previous clients are, and then pick one that I trusted and thought would be energetic in working to assist me in my goals.
Tags: Agents, Estate, Good, Idaho, Real, Sandpoint
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February 10th, 2010
Many homeowners do not understand much about real estate taxes and for this reason can end up in the position of losing their homes. Real estate taxes or property tax is normally calculated on the land value, the location, the county laws, and other factors. Real estate taxes are utilized for the upkeep of roads and other public services like emergency services and other municipal services enjoyed by the local residents. Real estate taxes are also in one way limited to the United States alone but for almost every country worldwide as well. Other names used for real estate taxes are rates and land levies and every homeowner will have to pay them.
How Much in Real estate taxes must I pay?
Real estate taxes are assed according to the sale value of your land or home. Rates are likely to be reassessed each year and normal inflationary increases and land values mean that your real estate taxes will increase with them. There are strict laws in place to ensure that these real estate taxes are paid and if you fall behind you are likely to even lose your home. The bill of rights requires that your property tax bill shows your assessment value of the property and the percentage of the how the figure has been arrived at. Real estate taxes can change according to the local municipal needs and area upgrades that need financing so your real estate taxes can change at any time in relation to municipal budgets.
Do I benefit from Real estate taxes?
Everyone benefits from real estate taxes because this money is used to the good all of all residents. In addition to this there are certain IRS benefits for real homeowners as well. Homeowner, are entitled to deduct payments of real estate taxes that they are paying on their property if you claimed for itemized deductions on your tax return. The IRS allows you to deduct real estate taxes on your main home as well as on any other homes and real estate you own. There are no also limits on the dollar amount of real estate taxes you can deduct either so this is certainly beneficial. For real estate investors with multiple properties and homes, there are also no limits on the number of these houses or properties for which deductions can be claimed for in real estate taxes.
How is Real estate Taxes paid?
When you pay monthly mortgage payment to a bank or financial institution holding your mortgage then the amount generally includes the real estate taxes that have to be paid on your property. The bank or mortgage holder pays these real estate taxes to the proper taxing county authority on their due dates. When your real estate taxes are included in your mortgage payments then you may claim an IRS deduction only in the tax year you actually pay your real estate taxes. You will find the real estate taxes paid for the year on the statement than the bank or mortgage lender gives you on the end of the year mortgage statements.
Buying Cheap real estate land and Homes with Tax Liens
Knowing the Ps and Qs or real estate taxes and tax lien foreclosures can make investing in real estate very lucrative. As mentioned above real estate taxes are tax deductible from the IRS no matter how many homes you own. If you have the right knowledge it is possible to purchase homes at a fraction of their prices for back real estate taxes but realtors and property investors in the know will rather prefer to keep this knowledge secret. It is possible to purchase luxury dream homes of your own or buy and sell property to make handsome returns if you know where to get your hands on this valuable information. You will find that the investment in information of this nature can also help you save money on your own property as well
Learn More About Real Estate and Tax Lien Properties
Tags: Estate, Real, Taxes, Understanding
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February 10th, 2010
You can learn how to take advantage of your real estate agent’s expertise before buying a house.
You’ve probably heard home buyers routinely complain how their agent didn’t do enough while they were buying a house. In truth, most buyers don’t know what to look for from a real estate professional in order to receive the best results.
With proper homework while shopping for a Realtor, you can be assured you’ve located someone who will watch out for your best interests. She is there to help you make better home buying decisions. So here are some ways your real estate agent can help in the decision buying process and questions you can ask to signal when you want her assistance.
1- A case in point, once you have toured several properties, ask your Realtor to help you rank your choices. An experienced agent can guide you to clarify your prospects and narrow down the field.
2- Additionally your Realtor can assist you regarding finances. Almost everyone buying a house needs a mortgage. Because agents are constantly in contact with lenders, they are often the best source of referrals to mortgage brokers and bankers. They have the inside track on lenders that have serviced other clients well in the past. Based on your particular needs, request at least two referrals of mortgage bankers.
3- Accordingly use your agent to discuss your concerns. When it is time to make decisions it is often good to have an objective opinion. Your agent can assist you in buying a house by pointing out trade-offs and how to set priorities.
4- From the start explain what your housing desires are so your agent can easily point out neighborhoods, communities, and developments that seem right for you. Good real estate agents are out visiting properties to stay current. So be sure and indicate that you welcome input.
5- Everybody understands buying a house is an emotional decision but it is important to know the facts too. Your agent has access to recent comparable sales, how long property has been on the market, and details regarding the area. It would be a shame not to take advantage of her expertise.
6- Along these same lines, if you work with an agent closely she can alert you to property that just came on the market or perhaps is about to be listed. So make sure your Realtor knows that you intend to work exclusively with her. Your loyalty will be rewarded.
7- Real estate professionals are also well versed in Seller Disclosure Statements and can help you wade through this detailed disclosure provided by sellers. This form is designed to reveal any defects regarding the desirability of the home and neighborhood. Your agent sees these disclosures routinely so be sure to request assistance.
8- Because real estate agents see so many houses they can also be sources of advice regarding redecorating, renovating, or remodeling a particular home. We all have a tendency to spend money on upgrades that might provide little or no return. Look at the property through the eyes of your Realtor to plan for value added improvements to the home.
9- The best agents are adept at following the process of buying a house from your first meeting to the final close. You should expect your transaction to be followed from beginning to end.
10- From the initial process of buying a house to signing final documents, you will have many experiences. Your real estate agent is comfortable with the roles of the seller’s agent, lender, appraiser, escrow officer and homeowner insurance agent. Realtors are trained and equipped to work through each step of this process.
11- In my opinion, here is what makes your agent worth her weight in gold. Because of seeing hundreds of real estate transactions a year, she is better able to anticipate problems ahead of time. Diligent agents know how to trouble shoot issues before they get out control. This is probably the most important service your agent can provide and the least obvious. So be happy when your house closes without a hitch. It’s outstanding proof of your agent’s performance.
12- Finally be sure and ask your real estate agent from the start to keep you fully informed concerning the state of your purchase. This is second nature for most Realtors. But it is okay to signal that you want to be kept in the loop at all times.
If you know what to expect from your real estate agent it should be easy to send the right signals and benefit from her expertise while buying a house.
Tags: Agent, Buying, Estate, House, Real, Signal, Ways
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February 4th, 2010
Knowledge is basically the most important key to success in any industry and specially in real estate investing. Even if you know some of the basic techniques in real estate, then you can successfully buy the best property or home without any down payment. However, increasing knowledge among people has no longer kept real estate investing a specialty of wealthy businessmen only. Today, real estate investing has become a very common financial motion for almost every individual. This change is basically because of the concentration and elimination of company pension plans. Personal investing guides have also replaced these plans as they have become the preferred plans to retirement.Real Estate Investing Books: Real estate investing books would literally increase your potential knowledge and information in the real estate investing field. Generally speaking, the people who write these books are the ones with experience in real estate industry, and thus they write from personal experiences. There are also real estate investing guide books that are published in electronic format, which are known as Real estate E-books. Real estate investing books would offer you almost all the possible information that is used by professional real estate investors. If you have only recently entered the real estate market then it is important that you posses the required important information which can be found in these real estate investing books.Real Estate Online Information Sources: Real estate investing includes various categories and sub-categories and there is plenty to learn in the real estate investing market. Although you might find real estate investing books a good source, finding information over the internet is a better idea. There are tons of websites on the internet, where you can find the desired information. You can even find real estate companies online who would keep you alert with the latest happenings in the real estate industry. If you are planning to buy a property or need to invest in real estate, then an online source would then be your best option. Most of the online real estate companies have a great source of real estate listings that you can refer to. Apart from this, you can also invest in one of the listed properties if the prices and the location match your requirements. These online companies would offer you various real estate investing tips and guidelines on how you could make great profits through the various properties that you have.Other Sources of Real Estate Information: Apart from these information sources, you can also opt for a real estate investing course. You probably could get the most out from a real estate investing course, but you just have to choose the right one. If you are really interested in discovering all the inside secrets of real estate investing, then a real estate investing course can teach you just that. The best part is that that are a number of real estate workshops, classes and courses that educate and offer the required information about the real estate investing market. You just have to choose the right course that would fulfill your need and make you a better real estate investor or help you make a great decision.
Tags: Estate, Information, Real, Sources
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February 4th, 2010
If you are buying a home, choosing a real estate agent may be the most important decision you make. A good real estate agent can help ensure that you are notified of homes that meet all your criteria. A good agent will also answer your questions and will walk you through the buying process, which is an invaluable service for first-time homebuyers. Despite all this, most buyers choose their agent in a completely haphazard way, simply falling into a relationship with the first real estate agent they encounter. A much better strategy is to do some sleuthing to uncover the agent who will truly help you find that perfect property. You can find the right professional by:
1) Interviewing candidates. It may seem like a lot of work, but comparing different real estate agents from different agencies can quickly show you which agents you respond best to and which ones seem to offer the best service. Interviews also allow you to assess experience, education, and other factors important in a good real estate agent.
2) Checking qualifications and sales. Look for a real estate agent who has some experience and has been on the job long enough to have expertise in the area. Ideally, you want someone who has worked as an agent for years in the same area and has an impressive sales record. In every community, you will generally find a few agents who perform very well because they know what they are doing and are good at what they do. Look for these agents and check to make sure that no complaints have been filed about them with the State Board of Realtors.
3) Lining up personalities. Buying real estate is highly emotional, so it is important to find someone you are compatible with. Look for a real estate agent you can really communicate with. If your personalities do not match, you may feel that your real estate agent is not doing enough for you and your real estate agent may get frustrated that you are not placing any bids. Find someone that registers a high comfort level with you and you can avoid these problems.
4) Making sure that your real estate agent is creative. Your agent will use the Multiple Listing Service (M.L.S.) to find homes, but he or she should also use their knowledge, contacts and experience to find homes that match your needs. You don’t want someone who can simply run simplistic searches you can run yourself from home.
5) Ensuring that your agent knows the area. A real estate agent who knows the area where you hope to buy can help you understand what is available and at what prices.
6) Checking customer service before you enter into a relationship. Real estate agents are busy people, but they should still be able to offer you good care. Your phone calls should be returned, your concerns should be addressed and you should be able to contact your real estate agent when you need to. If your agent uses an assistant, you need to ensure that it is the real estate agent themselves who will handle all work with contracts as well as the closing. That is what you are paying your real estate agent for. Stay away from agents who seem distracted, disorganized, and are not able to interact with you personally. You may find that your home buying experience suffers with these sort of agents.
The good news is that there are plenty of terrific, highly qualified real estate agents out there. Now that you know what to look for, you can hunt them up and have superlative help when it is time for you to buy property.
Tags: Agent, Choosing, Estate, Real, Tips
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February 4th, 2010
Okay, ten minutes is a guess. You might absorb what I have to say and thereby become better at real estate investing in less time if you’re a fast reader.Shall we get stared?Acknowledge the BasicsReal estate investing involves acquisition, holding, and sale of rights in real property with the expectation of using cash inflows for potential future cash outflows and thereby generating a favorable rate of return on that investment.More advantageous then stock investments (which usually require more investor equity) real estate investments offer the advantage to leverage a real estate property heavily. In other words, with an investment in real estate, you can use other people’s money to magnify your rate of return and control a much larger investment than would be possible otherwise. Moreover, with rental property, you can virtually use other people’s money to pay off your loan.But aside from leverage, real estate investing provides other benefits to investors such as yields from annual after-tax cash flows, equity buildup through appreciation of the asset, and cash flow after tax upon sale. Plus, non-monetary returns such as pride of ownership, the security that you control ownership, and portfolio diversification.You’ll need capital, investing in real estate does have risks, and investment real estate can be management-intensive. Nonetheless, real estate investing is a source of wealth, and that should be enough motivation for us to want to get better at it.Understand the Elements of ReturnReal estate is not purchased, held, or sold on emotion. Real estate is not about love; it’s about a return on investment. As such, prudent real estate investors always consider these four basic elements of return to determine the potential benefits of purchasing, holding on to, or selling an income property investment.1. Cash Flow – This is determined by the amount of money collected from rents and other income less operating expenses and loan payment. Furthermore, real estate investing is all about the investment property’s cash flow. You’re buying income stream, therefore be certain that the numbers you use to calculate cash flow are truthful.2. Appreciation – This is the growth in value of a property over time, or future selling price minus original purchase price. The fundamental truth to understand about appreciation, however, is that real estate investors buy the income stream of investment property. It stands to reason, therefore, that the more income you can sell, the more you can expect your property to be worth. In other words, make a determination about the likelihood of an increase in income and throw it into your decision-making.3. Loan Amortization – This means a periodic reduction of the loan over time leading to increased equity. Because lenders evaluate rental property based on income stream, when buying multifamily property, present lenders with clear and concise cash flow reports. Properties with income and expenses represented accurately to the lender increase the chances the investor will obtain a favorable financing.4. Tax Shelter – This signifies a legal way to use real estate investment property to reduce annual or ultimate income taxes. No one-size-fits-all, though, and the prudent real estate investor should check with a tax expert to be sure what the current tax laws are for the investor in any particular year.Do Your Homework1. Form the correct attitude. Dispel the thought that investing in rental properties is like buying a home and develop the attitude that real estate investing is business. Look beyond curb appeal, exciting amenities, and desirable floor plans unless they contribute to the income. Focus on the numbers. “Only women are beautiful,” an investor once told me. “What are the numbers?”2. Develop a real estate investment goal with meaningful objectives. Have a plan with stated goals that best frames your investment strategy; it’s one of the most important elements of successful investing. What do you want to achieve? By when do you want to achieve it? How much cash are you willing to invest comfortably, and what rate of return are you hoping to generate?3. Research your market. Understanding as much as possible about the conditions of the real estate market surrounding the rental property you want to purchase is a necessary and prudent approach to real estate investing. Learn about property values, rents, and occupancy rates in your local area. You can turn to a qualified real estate professional or speak with the county tax assessor.4. Learn the terms and returns and how to compute them. Get familiar with the nuances of real estate investing and learn the terms, formulas, and calculations. There are sites online that provide free information.5. Consider investing in real estate investment software. Having the ability to create your own rental property analysis gives you more control about how the cash flow numbers are presented and a better understanding about a property’s profitability. There are numerous software solutions to choose from online.6. Create a relationship with a real estate professional that knows the local real estate market and understands rental property. It won’t advance your investment objectives to spend time with an agent unless that person knows about investment property and is adequately prepared to help you correctly procure it. Work with a real estate investment specialist.There you have it. As concise an insight into real estate investing as I could provide without boring you to death. Just take them to heart and you should be fine. Here’s to your investing success.
Tags: Better, Estate, Give, I'll, Investing, Minutes, Real
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February 2nd, 2010
1. Showing you bad houses to buy before showing you the target house. Your Real Estate will first show you a series of houses in terrible condition and is overpriced. Then, after you see your terrible selection and you believe these houses are what you after to work with. Once that belief is set in, then your Real Estate Agent will show you a nice house. By the Law of Contrast, a valuable house looks even more valuable when it comes after a worthless house. If you find yourself viewing houses that are just rip offs, be careful when you see a decent house. It is actually less valuable than you believe. You Real Estate Agent may even try to compliment those worthless houses so that when decent house shows up, you believe it’s your perfect home! 2. Making you travel to look at the houses you want to buy first. This is a very common practice and it would seem to make sense. You would need to look at the houses before buying it, correct? Well, there is reason behind the Real Estate Agent wanting you to travel and spend your valuable time staring at these houses. By spending so much time on one house, it becomes too much of an effort to find your perfect house. You end up settling for your less than desired house. What should be happening is that before looking at the house, you should request a comparable analysis. Your Real Estate Agent has statistical information about the houses you are looking at and houses similar to what you are looking at. This statistical information reveals the market value of the home and whether the home is worth you TIME. By not showing you the comparable analysis, the time, effort and pain it takes for you to search for a home causes you to make a decision faster. If the Real Estate Agent shows you the comparable analysis first, it reduces the pain and you would wait longer to decide. Also, the Real Estate agent has to spend time to create the comparable analysis report where most likely, they would not want to do. Rule of thumb: Find a Real Estate Agent that will give you the comparable analysis first. Now, this isn’t to say you should never look for the house first. There is one exception. When you first meet your new Real Estate Agent, there is some level of concern on the agent’s side. The agent is spending valuable free time on you, gambling that you would buy a house through him. So if you start off by requesting comparable analysis, he will not do it. Any honest Real Estate Agent would not do it. A comparable analysis is valuable information that the Real Estate Agent gets for being a Real Estate Agent. They need to pay a fee to be a Real Estate Agent. What the Real Estate Agent needs to know, is that you need to provide some “level of comfort” that you will certainly buy the house through him in order to get the comparable analysis. To me, this is fair because if the Real Estate Agent is going to spend the time on you to help you find a home, then it would only be fair that you buy through him and let him get the commission. The legal way to show this “level of comfort” is to sign the 90-day commitment contract that indicates you would only work with him and no other agent for 90 days. This legal way is by no means the only way nor is this a bad way, either. It is only a matter of preference and your relationship with your Real Estate Agent that determines the best approach. 3. Encouraging you to put a high security deposit when writing up a contract to purchase your desired home. A security deposit informs the seller you are interested in purchasing the property and the amount lets the seller know how serious you are. The higher the amount, the more serious you are. The moment the contract is agreed upon by both parties and signed, you must provide the security deposit within the set time specified in the contract. This security deposit is suppose to be returned to you if the contract becomes null and void, if the conditions (usually financing and inspection) specified in the contract fails. Now, this procedure seems to be fair. Here is where the problem lies: If the contract becomes null and void and you want your money back, all parties must sign a form called a Mutual Release. This signature must include the buyer, buyer’s agent, seller and seller’s agent. If any one party does not sign, you will not get your money even if the contract has been null and void. If anyone party refuses to sign, you have to go through court, most likely small claims court, to settle your dispute and if you know anything about the court system in Canada, you know your court date could be as long as two years away! You should never be serious in buying house. It is poor negotiating tactics. If your Real Estate Agent encourages you to put a high security deposit, it is because your Real Estate Agent wants you to be serious about purchasing the property even though it is poor negotiating tactics. The reality is your security deposit can be very difficult to get back. Sadly, this is the general process in most home buying transactions and it is a very poor process. And did you know…
IT IS NOT NECESSARY TO PUT A SECURITY DEPOSIT AT ALL!
There are no limitations to a contract. It is only a matter of agreement. You can write anything you want on the contract as long as both party agrees. My suggestion is to encourage your Real Estate Agent to only provide the deposit after the contract passes the conditions. This is possible, but only if your Real Estate Agent is willing. Once again, I cannot stress this enough, to find a Real Estate Agent do not search through the Internet and pick the first one you see. Good salesmen do not make good Real Estate Agents. 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 choose to post them up. More to Come!
Tags: Agent, Estate, Ontario, Part, Real, Tell, Won't
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