Let me know if any of this rings true to you or anyone you know. You're excited to start searching for a house either as a first time home buyer or a seasoned one. I'm sure you have a family member or friend who would love to give you advice on anything and everything from their favorite chicken recipe to your home purchase. Although their intentions are good, let's go through some of the myths you might hear.
Myth #1 You don't need a home inspection
You might think everything looks shiny and perfect but remember that saying, everything that glitters isn't gold. It's best to know if there are any underlying issues, because sometimes problems just aren't visible. It's advisable to order a thorough home inspection and also all other desired inspections, such as termite, septic, soil, etc. You may also choose to hire a certified plumber, an electrician, or a foundation expert, the list can go on and on. Buying a home is a big purchase, so gathering all the information early on may save you time and money in the long run.
Myth #2 There is something wrong with that home since it's been on the market for a long time
Just because a home lingers on the market doesn't mean the home is in dire repair. In fact sometimes sellers overspend on remodeling and think that they will get it all back. It could be on the market awhile because it may have been priced too high before the seller decided to lower the price to fair market value.
Myth #3 Buying a home is stressful
In today's world of technology and having the right agent, buying a home doesn't have to be stressful at all, your real estate agent is just a call, text or email away. Speaking of email, many documents can be emailed as well as digitally signed. Which means you can have more time to review your documents.
Myth #4 Wait for Spring
Spring is usually the most busiest season in real estate but does that really give you an advantage? There may be more homes on the market but that also means there's more competition. Instead when you find the right home that fits all your needs for today and the next 5 to 10 years, that's when you buy.
Myth #5 Wait for home prices to come down
We've always heard buy when the market is low, however nobody knows the future. In today's market you're likely already paying high rents, which seems to be getting higher. The time to become a homeowner may be now. When I first became a real estate agent I met several people that wanted to buy a house but were waiting for the real estate market to come down even lower. That was 10 years ago, and they're still waiting to buy a home.
Myth #6 Make a lower offer so you can have room to negotiate
I'm sure you have heard this quite often however I know several sellers that don't like going back-and-forth with negotiations. On the flip side, having the highest priced offer also doesn't necessarily guarantee the seller will take your offer. Often times sellers choose the best offer that has the highest probability of closing. Another thing to consider there may be multiple offers, best to base your offer on fair market value. Sometimes Real estate agents will give multiple counter offers to multiple agents, but sometimes they don't. Once all offers are presented the seller decides which offer or offers to pursue. That's why often times you will hear the term, submit your best and highest offer.
Myth #7 You need 20% down payment
You do need 20% down payment for conventional loan to bypass mortgage insurance also known as PMI, however don't let that deter you from finding out what programs that you can qualify for. There are conventional loans that you can qualify for with 5 or 10% down payment. In fact there are first time home buyer programs that you can purchase a home with as little as 3.5 percent down payment. Also when I mention first time home buyer it doesn't necessarily mean it's your first time buying a home. You can probably still take advantage of first time home buyer programs even if you've had a home in the past.
All information provided is deemed reliable, but is not guaranteed and should be independently verified.