6 Myths of Buying a Home
There are tremendous values
to owning a home!
But as you venture out to into the unknown world of real estate, I would
like to caution you about a few things so you can put your emotions aside
and empower yourself to think clearly and make educated decision regarding
the biggest financial decision you'll make in your lifetime.
Below are a few "myths" to
keep in mind (especially you first-timers or property virgins)"
"The Perfect Home"
I don't want to burst your bubble...but, it doesn't exist!
I show approximately 600 homes to prospective buyers each year and I can
tell you first-hand that 90% are so fixated on finding the "perfect home"
that they end up missing out on wonderful properties that would have
otherwise met most of their needs. Your most likely not going to
live in the property for the rest of your life, so I suggest that you
focus on finding the best house, at the best price in the best
neighborhood you can afford.
"The Value of a Home Will Increase"
There was a time over the past few decades where the average
value of a home doubled every 10 years! If you have been fortunate
to time the real estate market to make this a reality - kudos to you!
After the mortgage and real estate meltdown in 2008, I simply do not see
how we'll ever repeat this in the future. Homes will continue to
appreciate at a reasonable rate over time, but double-digit appreciation
rates across the country are a thing of the past (in my opinion). Of
course all real estate is LOCAL and the circumstances surrounding each
parcel of property can vary greatly from city to city and state to state.
"I'll Save Thousands by Buying a Short
That may have been the case a few years ago, but banks are
starting to rethink their pricing strategies. These days, banks and
investors are looking to get "fair market value" just like a traditional
seller would. You'll have to decide if its worth waiting several
months to buy a short sale or just pursue the house down the street that's
already priced right for the area. You might end up paying the same
amount when the dust settles.
Nobody appreciates a smokin' deal more than me! However,
when it comes to real estate, unless you're an investor with cash, it is
very rare to "steal" a property from a normal seller unless they have it
so over-priced to begin with and you're able to negotiate the price
$10-$30,000 (or more) off the list price. Keep in mind though,
negotiating a low-ball offer on an over-priced listing is not a "steal" -
you're simply agreeing to pay fair market value. Some buyers think
if they pay fair market value that somehow they didn't get a good deal and
that's simply not true. Many factors go into successfully
negotiating the price & terms.
"Buying As Much House As You Can Afford"
In the mid-to-late 90's it seemed as if buyers unilaterally
decided to buy as much house as they could afford. In many cases,
buyers were opting for "Mc-Mansions" (homes that were too big for their
needs). In recent years (especially after the mortgage and real
estate meltdown in 2008), buyers have begun to realize that they could be
perfectly happy with a home that allows them to live comfortably and not
excessively. It's also much easier on the pocketbook.
"MLS Listing Information is Always Right "
Have you ever heard the term call "GIGO"? It stands for
garbage in - garbage out. It means the data is only as good or
accurate as the person who input it and the MLS is no different.
Agent or their assistants are sometimes rushed and input the wrong # of
bedrooms, bathrooms, square footage and/or leave out features. I
encourage my buyers no to discard a property simply because what is shown
on the internet MLS listing page. You could be passing up a great
Find Your Dream Home!
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