Small House or Big House?

[jumperman8]

GET a huge house, that is so ridiculously big that you can alwasy have visitors.

[Aleks]

Originally posted by Xtrema


Commisson for $240K is about $11K. If that were split between the agents evenly, that'll be $5.5K each. So in theory, it's the seller's agent's interest to sell it to you. That's if the split is 50/50, they may work out 70/30 so your advantage dimmishes. To the owner, it's pretty much the same either way.

But..... if the other buyer offers more than you do, say extra $5K goes to owner, the owner will sell to the highest bidder anyway since in the end, it's the owner's decision.

So don't assume you have an advantage because you only go thru 1 agent.

All i wanted to know is this. Say the house is 240, commision would be 11K. If the split is 50/50 each agent gets 5.5K Now take away one agent. That 5.5K could go to the owner of the house in its entirety if the agent is motivated to move the house, or he could try and take all of 11K, or some other split...

[HRD2PLZ]

Originally posted by Aleks



All i wanted to know is this. Say the house is 240, commision would be 11K. If the split is 50/50 each agent gets 5.5K Now take away one agent. That 5.5K could go to the owner of the house in its entirety if the agent is motivated to move the house, or he could try and take all of 11K, or some other split...

I think the agent would have to be extremely motivated to give away half of their commission for a deal. Especially acting as a dual agent. Of course, this doesn't rule out the possibility of a commission reduction by the agent, which would almost always go back to the seller. As an agent, it can become a sticky situation when you are selling your own listing. It usually works out better to sell someone elses listing, then you get the full commission from each side.

[Aleks]

Thanks for clearing that up.

[69cougar]

I am surprised no one here has talked about CMHC fees and how that comes into the equation.

If you can afford to put 25% down of the lower priced house and avoid these bastard fees then I would go that way.

When we bough our house our downpayment was = to the CMHC fees so they canceeled one another out and we didn't get ahead with our downpayment.

Given this depens on how much you have got saved

CMHC

Just my 0.02

[Aleks]

^ for a house hunting newb can you please elaborate on this fee? what is it?

[sputnik]

If you have less than a 25% down payment you are required to pay CMHC fees to insure your mortgage.

http://cmhc.ca/en/bureho/buho/hobustst/hobustst_002.cfm

[69cougar]

It's a fucking SCAM IMO.

Like I said

CMHC

[abyss]

Weren't they planning on getting rid of the mandatory 25%/CMHC fees around a year ago? I remember my parents were upset because they had saved 25% to buy their new house, and then I heard on the radio that they were cancelling that requirement. I guess the link proves otherwise, but does anyone else remember hearing about that?

[sputnik]

How is that a scam? The real estate market fluctuates and the banks have to protect themselves from a dive in the market and a number of people being unable to make the payments.

[GoChris]

lol i might have done that calculation thing wrong, but i have -880 available for housing. ya thats negative! lol.

ouch, my car+insurance is a mortgage payment right there...maybe time to sell my car

[sputnik]

Originally posted by GoChris
lol i might have done that calculation thing wrong, but i have -880 available for housing. ya thats negative! lol.

ouch, my car+insurance is a mortgage payment right there...maybe time to sell my car

This calculator will tell you how much house you can buy. However before you get too excited, make sure you take 25% off the number they give you if you want to live comfortably.

http://www.ingdirect.ca/en/calculato...en/maxmor.html

[Aleks]

Originally posted by GoChris
lol i might have done that calculation thing wrong, but i have -880 available for housing. ya thats negative! lol.

ouch, my car+insurance is a mortgage payment right there...maybe time to sell my car

yeah mine came out negative until I realized I was doing it wrong. In the TDS section the A line gets loaded wrong. You have to re enter your monthly income (A) in there yourself otherwise it will be wrong.

[Xtrema]

Originally posted by abyss
Weren't they planning on getting rid of the mandatory 25%/CMHC fees around a year ago? I remember my parents were upset because they had saved 25% to buy their new house, and then I heard on the radio that they were cancelling that requirement. I guess the link proves otherwise, but does anyone else remember hearing about that?

I believe it was elimination of mandatory 5% down. You now get own a home with 0 down but I believe it increases the CMHC insurance you have to pay on.

[HRD2PLZ]

Qualified buyers may purchase a home with 0 down, usually the interest rate (bank) is higher. CMHC just reduced their Mortgage Insurance fees, which is what some of you may have heard. If you can, I would definitely put 25% down. At the very minimum 5%, when you go 0 down things can get tight. Its is great though, for people who have good incomes but have a hard time saving up the money for a down payment