When you're buying or selling a home, there are a ton of ins and outs that define how smoothly a transaction will go. Because the home-buying process is so complex, many myths and misunderstandings propagate, giving new home-buyers an incorrect understanding of what to expect when buying a home. Here are a few of the most common real estate myths to look out for.
Top 10 Real Estate Myths
What lies about the real estate industry have you heard? Here are a few widely circulated myths that many inexperienced home-buyers fall victim to believing.
1. A Referral Is The Best Way To Get A Real Estate Agent
Simply trusting that an agent has your best interests at heart can lead to disappointment. Your needs are unique. Qualify all real estate agents to ensure they are competent and motivated to properly represent you.
2. Pay Off Your Mortgage Quickly
If you reduce your payment or simply pay interest only (secure line of credit) and invest the savings into a compounding interest account, your savings will be much higher than the value of your original mortgage.
3. You Don't Qualify For A Mortgage
Regardless of your credit or income, anyone can purchase a house. Options such as joint ventures, vendor financing, second mortgages, and many more, provide endless opportunities.
4. When To Buy Real Estate
If the papers say that a city is booming, everyone wants to buy. Therefore, this is the perfect time to sell. When everybody is selling because of a recession, then you buy while prices are rock bottom.
5. Its All About Price
Negotiating mainly on the price of a property will limit your opportunity. If you can offer more favorable terms to the other party, then the price will become secondary.
6. 1 Agent Someone Is Lying
Every agent seems to advertise that they are #1. You may not be getting the whole story (ex. 5 agents working under one name). Be careful of what you believe, as the criteria of measurement may lack relevance, or be severely outdated.
7. More Experience The Better
If a real estate professional has not kept up to date with the changing technology, regulations, market conditions, or modern service style, then all their past experience won't help you be properly represented.
8. Super Agents
If an agent works alone, be careful. It is impossible for someone to be accessible at all times. Your business may be handled by a real estate agent you have never met until your agent is available.
9. Every Agent In A Brokerage Is The Same
Real estate agents choose their own methods of customer service and business practices within their brokerage. Only very basic standards are in place, therefore, don't assume one agent is the same as the next.
10. Calling Signs Is The Best Way To Find A Property
An agent selling a property cannot represent their seller's best interests and yours at the same time. This is a conflict of interest. Save yourself potentially thousands and find your own agent.
The Importance of Having a Strong Understanding of Real Estate When Buying
Many people are afraid to purchase a first home because they're not real estate experts yet. Even some homeowners on their second or third purchase still feel this way, especially if they were burned in the past by buying the wrong home. But unless you plan to do something like flip a home for a profit, you only need a basic understanding of real estate processes and terms as long as you work with an experienced buyer's agent. Your real estate agent can explain all the essentials during the home search to give you a complete education on the essentials of real estate.
Don't just work with the seller's agent if you don't have a strong understanding of real estate. These agents are representing the seller's best interests and not yours as the buyer, so you may not get the same amount of information and help with your search. Hire a dedicated buyer's agent to streamline the process and bring you up to date on the latest changes in your local real estate market. With the help of the right real estate agent, buying should go smoothly even if it's your first time.