Common Misconceptions Home Buyers Shouldn’t Believe
Buying a home is seen as a true rite of passage, particularly for U.S. residents. After all, owning property is a big part of the American Dream. But even though we see it as a major milestone, there’s a lot that most people get wrong about this process. In fact, there are a lot of pervasive misconceptions that have the power to derail your entire home buying experience. If you plan on contacting your real estate company to look at homes for sale in the near future, you’ll want to know the truth about these common beliefs.
MISCONCEPTION: You must make a 20% down payment.
There was a time when this was true, but things have changed quite a bit since then. Putting 20% down can certainly make your monthly mortgage payments more manageable. However, this is no longer a necessity. Since real estate prices have risen at a faster rate than income levels have, it’s become harder for homeowners to save up a substantial amount for a down payment. There are trade-offs that come with making a smaller down payment, but it’s well worth it for many people who want to own a home. It’s important to talk to your lender first so you’re sure about how much you can afford to spend on a property.
MISCONCEPTION: It’s okay to skip a home inspection if you’re worried about a bidding war.
Your real estate company should advise you to never skip a home inspection, regardless of whether there might be multiple bids on the property. It might seem like a good way to get the house you want — and it’s true that this maneuver may help you stand out to the seller. Unfortunately, it will also mean that you’re agreeing to take on any hidden issues the home may have. In some cases, those issues might be so substantial that you’ll end up blowing your budget trying to fix them later. If you had just done the home inspection, you might have realized you should walk away or amend your offer to reflect the true value of the home in its current condition. There are better ways to make your offer more enticing to sellers that won’t force you to take a gamble on your future home.
MISCONCEPTION: You should start looking at houses in the spring.
Springtime will certainly be a more active season for your real estate company, but that may not always be a good thing. There will generally be more potential buyers looking at homes, which means the competition will be fierce. This can drive property prices up and make it harder for you to find a home within your price range. You’ll be more likely to get a great deal on a property you love if you look in the fall and winter instead.
MISCONCEPTION: If you have an agent, you won’t need to research the neighborhood.
Approximately 78% of recent buyers found their real estate agents to be useful sources of information. You can rely on your realtor for a lot of important tasks, but that doesn’t mean they can tell you everything. In fact, fair housing laws might prohibit your agent from providing you with certain facts pertaining to the demographics of a given area. So while your realtor can certainly tell you a lot about the property and provide some key stats about the area, you’ll want to supplement that with your own research.
MISCONCEPTION: It’s not necessary to work with a real estate company when purchasing a home.
Some people assume that they can go through this entire process themselves, especially when there’s so much info available online. Although working with an agent isn’t technically a requirement, it will prove extremely beneficial for a number of reasons. Your agent can submit an offer, negotiate terms, and ensure all important considerations are included in the final paperwork. They can also advise you during every step of the way and will have access to stats you might miss on your own. Ultimately, working with a real estate company does pay off and will provide you with valuable peace of mind during a stressful time.
When you’re ready to buy a home, we’re here to help. For more information, please contact us today.