If you’re at a point where you think you’re ready to buy a home, congratulations! But before you embark on this exciting (albeit arduous journey), let’s debunk some common real estate myths.
Myth: The First Step Is Looking for a House
We are as guilty as anyone for checking out homes on Zillow that are way above what we can afford. And you might be thinking, “What’s the harm in looking?” The problem is “just looking” can lead to getting your heart set on a house above your price range. So when it comes to home buying, the first priority is to get your finances in order. Ensure your credit score is good and get pre-approved for a mortgage. Only then can you determine a realistic budget.
Myth: You Don’t Need an Agent to Buy a Home
No, you don’t need an agent. But it is much more helpful having a well-organized, knowledgeable real estate agent in your corner. Not only will a good Realtor keep your best interests in mind during the entire home search and buying process, but they’re experts in the market – not to mention the mountains of paperwork that are sure to come.
Myth: Home Prices Are Always Going Up
It may seem like prices are always going up, but there are times when home prices are low. The real estate market is constantly fluctuating, and there are always pros and cons. This is why it’s best to talk to an expert when you think you’re ready to buy to see if it’s a good time to buy or worthwhile to wait.
Myth: A 30-Year Mortgage Is the Best Option
Many people think a longer mortgage means paying less, but that’s not the case. Why? A little thing called interest. You will end up paying more in the long run. We aren’t saying the 30-year option is bad, but just make sure you weigh your options and choose what’s best for you and your future.
Myth: A New Home Means Repairs Shouldn’t Be Needed Anytime Soon
Have you noticed how fast homes go up these days? Unfortunately, quick builds can also mean shoddy craftsmanship and overlooked details. The moral of the story here is to get an inspector specializing in new homes to help ensure a thorough inspection happens before you close.
Myth: The Only Upfront Cost Is a Down Payment
This is one of those things that first-time homebuyers often find out a little too late in the game. It’s not uncommon for the seller to decide you are responsible for closing costs, ranging from 3% to 6% of the purchase cost. There are also a number of fees, taxes, and other costs, such as inspection costs, credit reports, and so on, that you will need to consider.
Myth: Never Offer Full Price
This is one of those instances where it’s helpful to have an experienced real estate agent because they will understand their local market. If you find the home of your dreams and lowball the seller, this could insult them, which is an awful way to open a transaction. If you believe the house is overpriced, you can make a lower offer. Sometimes homes are priced just right, so offering full price might be your best option to secure the deal.