Home Buying Misconceptions
Online Home Value Estimates Are Accurate
One of the fastest ways to frustrate a seller is to offer a low ball price for their home based on estimates found on sites like Zillow and Trulia. Typically these estimates are inaccurate, and can lead to confusion in determining an appropriate offer price.
All I Need Is A Downpayment
There are various clost associated with purchasing a new home. These can include real estate taxes, bank appraisal, mortgage application, underwriting fees, attorney fees, mortgage insurance, inspections (home, septic, termite/wood boring insects, radon, etc.)
Buying A Home Is A Quick And Easy Process
Buying a new home takes time and patience. Typically a home will take about 60 days to close after going under contract. There are multiple factors that can come into play which can affect that timeline. Some of these include home inspection issues that need to be negotiated and resolved, title related issues, survey issues, the home appraising low, and scheduling conflicts between buyer, seller, attorneys and the mortgage company. Every real estate transaction is completely unique, and comes with its own hurdles to overcome.
I Should Make A Low Offer To Leave Negotiating Room
It is a common belief that initial price offers should be lower than the homes asking price, at times much lower. This can easily lead to frustration on the sellers part, and a refusal to negotiate with the buyer, or their agent. This is not to say that there will be circumstances when making a low offer is not in the buyers best interest. For tips on determining the best offer price click here.
It Is Not A Good Time To Buy
Every market analyst will have an opinion on whether it is a good time to buy. As real estate agents we look at market absorption rates, interest rates and other factors to determine if it is a sellers or buyers market. Obviously the interest rates today make it an attractive time to buy a home. The fact is that every person or families reasons for wanting to buy a home differ. We all have unique needs and goals, and that is ultimately what determines when the best time for someone to buy is. As a Realtor, I do my best to ensure that no matter when you decide to buy we leverage the market to your benefit as much as possible.
My New Home Will Be Worth More In The Future
No two homes are alike. Each has its own features, and value is determined by many factors. Likewise every market has its own factors affecting properties, including school districts, amenities, HOA's, distance to shopping, crime rates, and the list goes on. Doing your due diligence now in researching a home and market before buying can pay off in the long run, and there are never guarantees that a property will increase in value over time.
I Should Find The Home I Want Before Speaking With A Lender
A buyer should always consult first with a mortgage lender to determine their financial options. Prior to accepting an offer a seller will require the buyer to provide a pre-approval letter from their lender. So if you find the perfect house you can not make an offer until this is done, and in todays fast moving market, you could lose out on that home if it has multiple offers coming in. Other reasons include knowing you are seeing homes that are withing your price range, understanding the expenses associated with purchasing a home, and ensuring you get the best interest rate, and mortgage product.
I Have To Have Perfect Credit
Credit scores obviously have a huge impact on a buyers ability to purchase a home, however there are mortgage options that are available with a credit score of 640, and sometimes even lower. Your credit score can be a determining factor on interest rates, which can also affect monthly payments. These are all things that a mortgage lender can explain in detail.
I Will Need Lots Of Money To Put Down
Not all loans require 20% down. FHA (Federal Housing Administration) loans are extremely popular, and can require as little as 3.5% down. Veterans may qualify for a VA loan, which requires zero money as a down payment. There are even new conventional loans that require as little as 3.5 percent down.
I Don't Need To Have Professional Help
My first question is "Why turn down free professional help?". Typically the commission for a buyer's agent is paid by the seller. The seller is being represented by a trained professional real estate agent, and you need that same experience on your side. And its free! That is not to mention the time, and stress it will save you in searching for listings, arranging appointments, negotiating, understanding contract, etc. For more information please click here.