If you’ve been thinking about buying your first home, chances are you’re getting tons of advice from everyone you mention it to. It can be pretty overwhelming, which is why I want to share 3 home buying myths you need to know if you’re considering homeownership. These will help debunk some of the things you may be hearing from people who want to give their advice from the kindness of their hearts but probably aren’t professionals.
MYTH #1: You Have to Put 20% Down to Purchase a Home
This could be the biggest home buying myth of all time! Putting a minimum of 20% down on a house does have some financial benefits .. BUT it isn’t required all the time.
There are several options when it comes to financing your home so you’ll want to meet with a local lender to discuss these options before jumping head first into the process.
There are loans that require as little as 5% down as well as resources for buyers struggling with getting a lump sum together. Combined with first time home buyer programs, you might be closer than you think to owning your own home!
Pro Tip: Do not get pre-approved from an online lender. Find someone local who you can actually sit down with, understand your options and make the best decision for your financial future.
MYTH #2: It Doesn’t Matter if I Don’t Have a Real Estate Agent
Some buyers prefer not to commit to working with one specific agent and therefore they don’t take advantage of having an agent to help them with their home purchase. This means they’re on their own for scheduling showings, being alerted of new listings, and when it comes time to negotiations, they won’t have anyone working with them.
This is not a great combination because it can prevent you from getting an accepted offer on the house you really love because you haven’t been educated on the market or how quickly you need to make a move. I don’t know about you but if I’m buying my first house, or any house for that matter, that doesn't sound like a situation I’d want to be in.
MYTH #3: Wait Until “Spring” to Start Looking For Homes
Real Estate Agents hear this ALL. THE. TIME. I want to share why you shouldn’t wait for a specific time of year to start your home search, especially Spring.
There is less competition when you’re not in the prime months for buying and selling real estate. Buying in the “off season” could save you money because there are less buyers around which means less potential competition when writing an offer. It’s best to start your home search when you are ready rather than waiting for a certain time of year. There are always new listings coming on the market and you could be missing your perfect house if you want to start your search until a specific time of year.
If you’re considering homeownership, you’re already ahead of the game by knowing about these 3 myths. Your next step should be to sit down with a local Real Estate Agent who can go over the entire process with you and set you up for success.
Whenever anyone mentions that they’re thinking of putting their house up for sale in Whangarei it seems that everyone wants to give their opinions on the subject. Because of that, a lot of myths have developed that seem to go around all over the place. Let’s debunk those myths so that when you’re ready to sell, you know the facts!
MYTH #1: Automated Home Evaluations Are Always Accurate.
Have you ever seen an Ad on Facebook that says “CLICK HERE to automatically determine your home’s market value” or something along those lines? If the answer is yes, I promise you’re not alone. The problem with the automated home evaluations is that they are not taking every factor into consideration and can result in false information, causing you to believe that your home value is less than what it actually is or even higher than what is realistic.
The internet doesn’t know if you have just put in hardwood floors, updated all your landscaping, added a brand-new deck or any other update you’ve put your hard earned money and possibly even your own valuable time into to improve your home.
What type of evaluation could give you an accurate answer? One where a LOCAL Real Estate Agent meets with you so they can conduct a personalized market analysis after asking you for more details about your home. Even better, schedule a consultation so that Agent can see your home in person and give you the MOST accurate answer. Listing Consultations cost you zero dollars and you have no obligation to order the for-sale sign and start signing afterwards.
MYTH #2: If You Don’t Have an Open House, Your Home Won’t Sell
Most buyers who are seriously shopping for a home are working with a real estate agent. They get new listings from their agent as new homes come on the market. Their agent takes them out to look at homes, and they get private inspections. Generally, by the time a house is held open, a serious buyer has already seen it.
This isn’t to say that your home shouldn’t have an Open House when it’s for sale, but it also isn’t always the most effective marketing strategy. Holding an Open House will help increase exposure when your home first hits the market, so it’s recommended to have your Agent hold one the first week or two that your home is on the market in order to drive as much traffic as possible to your listing. However, make sure your Agent has other marketing strategies they use other than standing around your house for an hour or so every weekend.
MYTH #3: If You Price Your House on the High End, You’ll Have Room to Negotiate
Many sellers believe that if they price their house high, they’ll end up at the price they actually want. The problem with this is, that you’ll be decreasing the demand (number of interested buyers) when you first list your home which will automatically create a mindset that the home is priced too high.
When your home hits the market, you want to make sure you are drawing from the biggest pool of buyers to get as much exposure as possible. Pricing it on the high end will eliminate buyers who can afford the price you actually want because their budget might not go up to the price you’re starting with. Instead, price it at or slightly below the market value to increase demand, competition and ultimately more money in your pocket.
If you’re thinking of listing your home in the near future, you’re already in a better position knowing the truth about these common seller myths. To be even more prepared, make sure you schedule a listing consultation with a Real Estate Agent to find out what else you should know before listing your home for sale.
Helpful and interesting info from Paul, and Harcourts to help you with your property journey.