3 Common Home Buying Myths
Nobody really knows who starts myths, whether of the classic Greek variety or the modern real estate type. While the former are harmless enough, common real estate misconceptions may be dangerous – especially to your pocketbook.
Like a game of telephone, facts become lost in the translation and misinformation conflates with fact. It’s time for a little myth busting.
1. I’ll make a Lowball Offer so we can Negotiate
While it’s true that the buyer is typically in the driver’s seat during a slow market, he still shouldn’t exceed the speed limit, run stop signs or insult sellers. And that is the risk you take by offering an absurdly low price on a home.
Homes are full of emotional attachments for most owners. Offering a rock bottom price may be offensive to the seller who takes pride in the home. Even if the seller counters the offer, giving you a chance to come in higher, the damage may already be done. The seller doesn’t like you, and the transaction, if there is one, may be tainted.
What happens if you determine the house needs some repairs? After dragging the homeowner’s price down and offending him in the process, it’s doubtful he’ll be amenable to making repairs unless absolutely necessary.
Figuring out how much to offer on a house involves walking a fine line between insultingly bargain-basement offers and maintaining the possibility of future negotiations.
2. I’ll buy when the Market hits the Bottom
Trying to time the real estate market is an exercise in futility, yet daily I hear homebuyers say they want to wait to purchase until prices are at rock bottom.
Unless you have a crystal ball, how will you know when the market hits bottom? Even the experts are only able to offer educated guesses as to when a market has reached its lowest level.
Consider this: the only way you will know that the market has reached the bottom is when it starts to go back up. By then, it’s too late and you’ve missed the best buying opportunity.
3. I need to wait until I have 20 Percent to Put Down
We can probably blame the media for this myth. For years now we’ve been hearing about how the mortgage debacle that got the housing market into such a pickle has resulted in more stringent lending standards. While that is certainly true, the facts have been greatly exaggerated.
Sure, it’s preferable to have a large down payment – you won’t be required to purchase private mortgage insurance and you’ll get a better interest rate on your loan – but folks are still buying homes without one. Veteran’s Administration and USDA loans still require no down payment for qualified borrowers.
From large national real estate sites giving out bogus home values to myths you’ll pick up from friends and family, the real estate process is riddled with misconceptions. Rely on your real estate agent for the facts and buying a home will be much easier.
The Cindy Bates Group @ Keller Williams East Idaho
Cindy Bates 208-227-5321 * Shalan Hyde 208-716-5480 * Zac Keating 208-313-1180
Blog Archive2019-02-21 11:58:34
How To List Your Home for the Best Price
Greater Idaho Falls Association of Realtors MARCH BLOOD DRIVE
Millionaire To Millennials: Don’t Get Stuck Renting A Home… Buy One!
Why Homeownership Matters Now More Than Ever
Pre- Foreclosures on Zillow
Thinking of Selling Your House in Idaho Falls? This is a Perfect Time!
The Cindy Bates Group is Here for You!
Why you Shouldn't FSBO
Why It Makes No Sense to Wait for Spring to Sell
Whose Mortgage Do You Want to Pay? Yours or Your Landlord’s?
5 Reasons Idaho Falls Homeowners Throw the Best Super Bowl Parties!
Idaho Falls, Do You Know How Much Your Home Has Increased in Value?
Is Student Loan Debt A Threat to Homeownership? No!
Tuesday Tid Bit! It's not too late! Jan 31, Feb 1
Think You Should For Sale By Owner? Think Again!
3 Things You Need in a Shifting Real Estate Market
Do You Prefer the Charm of an Existing Home?
Buying a Home Young is the Key to Building Wealth
The Difference Having a Professional on Your Side Makes
What is the Cost of Waiting Until Next Year to Buy?
Where is the Housing Market Headed in 2019?
Is the Recent Dip in Interest Rates Here to Stay?
Tax Time is Upon Us
Buying a House This Year? This Should Be Your 1st Step!
Homeownership Remains a Huge Part of the American Dream
Click here to see ALL articles.