TOP HOME BUYER AND HOME SELLER MYTHS – SEPARATING FACT FROM FICTION FOR CONSUMERS AND VENDORS
Considering the purchase of a new home or are you pondering placing your house on the market? In either case, the real estate industry may have potential buyers and sellers in a head spin. What is fact…what is fiction…what are myths…what is the truth? Let’s sort through a few of the misconceptions about the buying and selling process.
COMMON BUYER MYTHS
1) IT IS CHEAPER TO RENT THAN TO OWN
FACT – Owning can be more cost effective in the long run because of possible appreciating in the property, as well as building equity.
2) YOU NEED A 20% DOWN PAYMENT
FACT – HUD/FHA loans allow a 3/5% minimum down payment.
VA loans allow 0% down for active-duty and veteran military.
USDA/RD loans do not require a down payment.
3) YOUR CREDIT SCORE NEEDS TO BE PERFECT
FACT – A good credit score may benefit you in a lower interest rate, but lenders offer various loan programs for different credit profiles. You don’t need a perfect credit score.
4) YOUR PRE-APPROVAL RATE IS THE RATE YOU’LL GET WHEN YOU CLOSE
FACT – Interest rates adjust daily. The rate you’re quoted during pre-approval is based on current market conditions and factors. Work closely with your lender.
5) ALL LENDERS ARE THE SAME
FACT - Lenders vary in terms of rates, fees, and customer service. Shop around and compare offers.
6) THE LISTING PRICE IS JUST A SUGGESTION
FACT – The listing price reflects the seller’s expectations. Hire a qualified real estate agent to deal with negotiations successfully and professionally in determining a fair offer.
7) FALL AND WINTER ARE BAD TIMES TO BUY
FACT – Fall and winter offer the advantages of less competition, motivated sellers, and potential tax benefits to you for closing before the end of the year.
COMMON SELLER MYTHS
1) WIGGLE ROOM IN PRICING IS ESSENTIAL FOR NEGOTIATION
FACT – Overpricing your home can backfire. Accurate pricing is crucial. Hire a qualified real estate agent to help you determine a fair market value for your home.
2) MY HOUSE WILL SELL IN THE FIRST WEEK
FACT – While that may have been the case a couple of years ago, this is not always the case. Manage your expectations and practice patience for a successful sale.
3) GOING WITH THE FIRST BUYER IS RARELY THE BEST CHOICE
FACT – Waiting for a better offer might not be in your best interest. A good real estate agent will help you navigate the offers.
4) YOU CAN DO IT SOLO
FACT – There’s more to selling a home that putting a sign in the front yard and running ads. Many things that a real estate agent does are ‘behind the scene’. This topic was addressed in a previous blog post Be Well Informed Before Drawing a Conclusion on The FSBO VS Realtor Question at www.sandindowningrealestate.com.
5) IT’S FINE TO SELL YOUR HOME AS IS
FACT – While you may have learned to live with some ‘less than perfect’ features in your home, the buyer may not be so willing to overlook those items. By addressing these issues, you will likely sell your home more quickly and may receive a better purchase offer.
6) IMPROVEMENTS AND UPGRADES MUST BE BIG TICKET ITEMS
FACT – Simple things such as removing personal items can make a huge difference when others tour your home. Be cautious with expense improvements, as your taste may not appeal to prospective buyers.
7) YOU CAN RELY ENTIRELY ON ONLINE HOME VALUE ESTIMATES
FACT – While online sites by be helpful, there is no substitute for the expertise of a professional real estate agent.
These are just a few tips to point you in the right direction with facts, not opinions. The goal of this article was to do a bit of ‘myth-busting’ and provide you with some facts about home buying and home selling. John F. Kennedy said, “The great enemy of truth is very often not the lie: deliberate, contrived and dishonest, but the myth: persistent, persuasive and unrealistic.”
Sandi Downing Real Estate/Keller Williams
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