Posted on: 08-09-04 18:46:03
key is, building equity... and its not just the equity in property... but if you make a substantial down payment, plus acclerate your mortgage to pay it off in about 10 years instead of 25 (if you can afford to that is) then you save a hell of a lot of money in interest...
my house is paid off (21 years ahead of schedule), apart from the equity i have in the house itself, by acclerating my mortgage according to my amortization schedule, i saved over $98k in interest payments over 25 years... very few investments around that can match that for returns, plus thats all after tax dollars...
biggest motivation for me was, tomorrow if i meet with an accident that is not covered by insurance and dont have any income, atleast i dont have to worry about having a roof over my head... because realistically in the average household, cost of the place is the biggest expense you have, be it mortgage payment or rent... most people i know spend 40% of their disposable income on it...
Zen said:
most real estate agents end up working on behalf of the seller even if they represent the purchaser. After all it is always the sellers that pays commissions, correct? How often have we heard that r.e. agents get the purchaser to raise their stakes a little higher? It happens a lot. And qwuite often the conversation would go soemthing like this: Wel it is only $20,000 more than your budget which really only works out to about an exta $120 onyour mortgage or about $4-5 per day. But this is your dream house , right?"
Reply:
I empathise with how you feel and even more sad to see how ignorant most people can become. The above will never happen if both the buyer and seller know their rights and know who is working for whom.
Buyers sometime rush themselves into buying a home. They would start their weekend by either calling on ad signs after seeing a home in a newspaper, magazine, MLS, Internet or by just visiting an open house. It would definitely make sense if the buyer does all the above with goal to find a good agent before finding an ideal home.
Did you know that the listing agent or the agent whose name is on the lawn sign is working for seller? His prime allegiance is towards the seller. Then who works for the buyer? Of course a Buyer Agent.
So before searching for home one should save ones time and search for a professional buyer agent. Someone who knows the home buying process and is a consultant. Though the buyer agent also gets paid by the seller, his prime allegiance is towards his buyer and not the seller of the home.
A situation to pay extra dollars for a home will never arise when a buyer agent is competent and has satisfied his buyers by showing them comparable sales in the neighbourhood. Smarter agents will go even one step further by cautioning his/her buyers about future expenses a prospective home might incur e.g. cost towards replacing old carpet, roof shingles, windows, furnace, a/c, upgarding kitchen or bath, benefits of hiring a professional home inspector etc. Further a buyer agent protects his/her buyer's rights by inserting the home inspection conditional clause in the offer in addition to other legal clauses.
If the home has not been priced right after calculating the fair market value based upon the CMA (comparative market analysis) less some of the above costs, no professional agent will advice his/her buyer to put an offer on that property.
Click the below link to see how the real estate agency works in Canada:
http://www.realestate-ontario.com/agency.htm
Yes, we Realtors work on commission like many sales professionals in North America, this does not mean that our clients do not see value in our services and save a lot of time and money by hiring a good professional.
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
I agree with these observations.. even the positive people stop even acknowledging existance of people who ask some questions and want more info.
If this HELP is done with HEFTY commissions with their own houses built quickly. Why there is this imbalance in this so called developed economy.
I hope all and esp. any economist give more insight on this imbalance .
Why one person is getting so much money( with MOST of them giving wrong advise as accepted by themselves) while so many toil in the labour job.
what is the definition of HELP?
In all this My point is that the commission structure is much hefty as compared to HELP provided.
This comm. of 5% should come down.
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trying to find real persons
Quote:
Orginally posted by bally minhas
In all this My point is that the commission structure is much hefty as compared to HELP provided.
This comm. of 5% should come down.
That's not a fair thing to say! Commission rates at the end of the day are determined by the market, and the market will pay those rates as long as they feel that they are getting value for the money paid.
Amit - the idea of a buyer agent does make a lot of sense, good post.
