Top 5 Real Estate Myths
Despite the fact that most people only buy or sell a home once a decade or so, most people tend to think that they know everything about the process based on the experiences of friends and family members or stories they have read online. We always say that there are no stupid questions because you are better to ask us than to assume something to be a fact that is incorrect. Here are a few of the top real estate myths that we hear about all the time!
You Need 20% Down to Buy a Home
This is one of the most common misconceptions for first time home buyers. The old school rule of needing 20% of the purchase price for a down payment simply isn’t true in today’s market. There are programs available such as 3.5% down FHA loans, 1-3% down Home Ready programs and even 0% down for programs such as USDA or VA loans. Curious what programs you qualify for? Give us a call and we’d be happy to give you our list of great lenders to speak with.
You Should Always Call the Listing Agent If You Want to Buy a Home
This one couldn’t be further from the truth! Bringing in an agent that you trust to represent your needs costs you NOTHING and provides you with an advocate looking out for only you in the transaction! If the same agent is representing both sides in a transaction, they are engaging in what is called “limited agency” and can’t provide real advice to either the buyers or sellers. We can show you any home on the market no matter the listing company and will always be YOUR advocate!
You Will Recover Costs for Renovations When You Sell
While replacing your roof or HVAC system might help your home sell faster, in general these maintenance type items do not recover their cost dollar for dollar when it comes time to sell. The top two renovations where you get “bang for your buck” are renovations to the kitchen and master bathroom, but these costly renovations still don’t always give you a dollar for dollar increase in selling price. If you’re curious about whether a renovation will increase your home value, give us a call and we’d be happy to provide our suggestions.
You Should Price Your Home Higher To Leave Room for Negotiation
Sellers often times have a “bottom line” price in mind and feel that they should price above this in order to leave room for some negotiation with buyers. Although this strategy sounds correct, homes that are priced competitively from the beginning tend to sell faster and at a higher price than homes that are priced high and slowly work their way down to the correct price. The longer a home sits on the market, the less interest it generates and the more buyers feel they can negotiate on price. Often times, your first offer is your best offer!
Selling a Home “For Sale by Owner” Saves You Boatloads of Money
The main reason sellers believe that selling their home “for sale by owner” (FSBO) is a good idea is because it will save them lots of money. Not true! Most people who attempt a FSBO sale believe that with the tools available to them online, selling a home is easy! Turns out there is a lot more to the sale than putting a sign in the yard and waiting for someone to come with an offer. Often times, sellers have no idea how to read the contract put forth and end up in a bad spot legally. One bad contract dragging out over the course of a few months could keep you off the market and make you miss the right buyer!
Still have questions?
Have any other questions we can answer for you? Like we always say, there are NO stupid questions. Buying a home is one of the largest financial transactions of your life. It’s better to ask rather than assume. We are always available for lunch or a coffee to discuss any questions you have. No obligation or pressure!