There’s a lot to know when it comes to Real Estate, and it’s sometimes tricky to know what’s true about the process. Misconceptions can even deter people from buying or selling a home, which is why we are exploring a handful of common Real Estate myths and putting some of those rumors to rest:
All Real Estate Agents are the same: Besides bringing their own unique personalities to the table, Real Estate Agents also possess different skills, experience levels, and specialties (one may know everything there is to know about new construction, while another may specialize in rural properties or raw land). Also take into consideration those that work with sellers, and those that work with buyers. It may take a little extra time and searching, but it’s worth it to find an Agent that truly fits your needs.
A 20% down payment is required to buy a home: In 2016, the average down payment on a purchase mortgage was just 11% (and they are often lower!). A number of factors determine the necessary down payment, including the buyer’s financial circumstances, price of the home, and its location. Also, some organizations such as the Department of Veterans Affairs offer no-money down loans to those who are eligible, or first-time buyers may qualify for 3.5% FHA mortgages. If you take the time to explore your options, there are a number of ways that home ownership may be possible.
You can skip the inspection when buying: While you may be worried that you may lose your chance to buy a home because an inspection will add some time to the process, it’s not worth skipping out on it. Without an inspection you get the home as-is, including any issues that you may (or may not) see. A thorough inspection can save a lot of money and headaches in the long run, and are needed even for newly constructed homes.
When selling your home, price it higher than it’s worth to leave room for negotiations: This is often a sure-fire way to leave your home sitting on the market for longer than it needs to be, which may raise red flags for buyers. Thanks for the internet, buyers have become savvier than ever when shopping. Many can spot a home on the market that’s considerably overpriced, and will not take the time to look at it. Ask your Real Estate Agent for a comparative market analysis based on the sales price of similar homes in your area to help determine what may be reasonable for your home.
Selling your home yourself will save you lots of money: Selling a home isn’t as easy as sticking a “For Sale” sign out front, posting it online, and making a deal. It may sit on the market for months for a number of reasons, whether it’s overpriced or doesn’t get the marketing it deserves. The transaction process itself can be complicated, and mistakes can be costly. Real Estate Agents bring not only experience and knowledge, but negotiation abilities, connections, and marketing know-how that people outside of the industry may not possess.