Top Real Estate Myths

There is a myth associated with nearly everything in existence. Myths often challenge facts and pose alternate suggestions. Within real estate, myths can lead to disappointment and frustration as a result of misunderstanding fact versus fiction. Myths are invented stories, ideas or concepts that are simply false. Myths can originate from the internet or something you heard or read; however, not everything you read on the internet or hear is true. Here are some top real estate myths debunked.

All real estate agents are the same

This is one of the most common myths, which can not only impact how buyers and sellers are represented but can also lead to unfortunate errors in a real estate transaction. Every real estate agent has different traits, skills and experience levels.

Real estate agents make loads of money

While successful real estate agents can make a decent income, it’s a myth that all real estate agents get rich from real estate transactions. This myth leads some buyers and sellers to believe that a real estate agent’s only objective is to make money; however, the income a real estate agent can earn results directly from their effort, time and money invested in a transaction.

Price your home to leave room for negotiations

Pricing a home correctly is one of the most important steps in selling your home. Incorrect pricing can lead to “bad faith,” resulting in buyers losing interest in your home, while “overvaluing” can result in prospective buyers not even getting past the online listing if the value doesn’t equate to the home itself.

You need a lot of money to buy a house

Myth. To get a good rate, you only need to put down as little as 5% or 10% of the purchase price. There was a time when you needed to put down 20%; though it’s a great way to avoid private mortgage insurance which is often required with a smaller down payment, those days aren’t as prevalent.

All you need is the down payment

Also, a myth. Your home purchase might not require a large down payment, but that doesn’t mean you don’t need other financial resources from which to draw upon. Starting home hunting without these resources is a mistake many people make. You will likely encounter different variables such as moving costs, additional closing costs, and other expenses associated with a new home.

You can do whatever you want with your house

Most people tend to think that when they own a home, they can do whatever they would like to do with it. The reality however is different. You must take into account certain stipulations, such as homeowners association requirements, municipal regulations and other factors. Permits and zoning are other necessary considerations.

You must have a perfect credit score to buy a home

A higher credit score might allow you to get a favorable interest rate, but that doesn’t mean that with poor credit you are doomed to never own a home. There are different options available for buyers at various credit levels. A no from one lender doesn’t mean you should stop looking.

A home inspection is not required

Even if you have prior home buying or DIY experience, always get any potential home inspected by a professional. Buying a home is likely one of the most significant financial transactions you will make in your lifetime. Another pair of eyes is invaluable as it might uncover well-hidden flaws that could impact your investment.