If you are in the market to buy or sell a home, know the truth! Don’t be robbed of an amazing purchase opportunity or from selling your home for more money. Here is a list of the most common myths we have come across over the years.
1. Setting a high price on your home leaves room for negotiations.
This might work at a garage sale but not on the price of your home. Buyers will be looking at other homes in your neighborhood and both buyers and their realtors will recognize when a home is overpriced. If so, this will be a turnoff and overpricing may ultimately lead to not having any buyers interested at all.
2. Online Evaluations for Home Value
These online tools are great for an estimated value but they do not take into consideration any upgrades or problems in a home. They also do not utilize recent sales pricing on similar homes within the neighborhood. This is a precedent for setting a price on any home, including yours. Contact your Realtor for a Comparative Marketing Analysis and help with setting a price. A professional is the best way to know the true value of your home and to get more money when you sell it!
3. The longer a home is on the market the more you will be able to negotiate.
Not true at all. There are many reasons a property may be on the market for a while that have nothing to do with the condition of the home or the price. Don’t assume that more time on the market means the sellers are more eager to sell.
4. Go for the 30-year fixed-rate mortgage.
Although this is one of the most common mortgages it is not always the best depending upon your situation. Not everyone will benefit from this type of mortgage and not everyone can afford the down payment on this type of mortgage. If you aren’t planning on spending 30 years in your home, you need to evaluate other options. If your realtor is a rock star, I’m sure they have a rock start mortgage broker too.
5. Save at least 20% for your down payment.
A 20% deposit is a great way to save money on financing costs because you are bringing a higher amount to the table. Yet, this is something that was true decades ago. Today, if you want to lock down a good rate, you can do so with as little as 5% or 10% down. There are other options too, such as the Zero Down loan which offers a gifted down payment of up to 5% and does not need to be paid back. There are also VA and USDA Grants that can really help with a very low down payment or no down payment at all.
6. Buying a home in spring or summer is the best time to buy.
The truth is that Spring and Summer are peak seasons for Real Estate. This is a good thing for sellers but not for buyers. It means that competition is at an all-time high, pricing is harder to negotiate for buyers, realtors have more clients and less time, and homes tend to be gone in the flash of an eye. Think of buying patio furniture in winter… Buying in Fall or Winter will be a much better experience all around. Solid Reasons to Buy Your New Home This Winter
7. Renting is cheaper and easier than owning a home.
Countless studies have been done over the past few years and even with taxes and home maintenance, home ownership costs significantly less than renting in most areas. If you are going to be paying someone’s mortgage, why not pay your own! Owning vs Renting