There’s a great deal of information one can find about real estate, whether it’s through the internet or by talking to family and friends. But a lot of hearsay gets passed around, too. So how do you separate fact from fiction?
Here are 7 of the most common real estate myths you might have stumbled upon:
Pricing your home higher can land you a better deal
In an attempt to gain the upper hand, sellers will often price their homes way higher than what they’re really worth. However, overpricing can have serious consequences because it turns off potential buyers and forces your home to stay on the market longer. Buyers and their agents are well aware of the local housing market trends and prices, so it doesn’t pay to overprice.
The best time to buy or sell a home is during the spring
Spring may be one of the most popular times to buy or sell a home, but that’s not always true. Ultimately, the right time to buy or sell a home depends on your property, its location, and the state of the local real estate market.
Pre-qualifying for a mortgage is the same thing as getting pre-approved
Contrary to popular belief, getting pre-qualified for a mortgage and getting pre-approved are two different concepts. While both steps are crucial to the mortgage application process, one carries more weight than the other. Pre-qualifying is the initial step a home buyer needs to take in order to learn how much loan they can qualify for.
The next step, which is getting pre-approved, involves a deeper examination of your debit, credit, and overall financial history. A pre-approval indicates the amount you may be able to borrow to buy a home.
It’s okay to skip the home inspection
Homebuyers who want to save money often make the mistake of forgoing the home inspection process. However, inspection is crucial because it gives you an accurate picture of the property’s condition and indicates safety issues that need to be addressed.
The down payment and mortgage payments are going to be the only major expenses
Homeownership comes with a lot of expenses before, during, and after the transaction. Many homebuyers assume that the down payment and the upcoming mortgage payments are the only expenses that they’ll handle.
Keep in mind that once the home is yours, you’ll be responsible for the utilities, repairs, upgrades, renovations, and homeowner’s association (HOA) fees. So adjust your budget accordingly.
You can do what you want to your property
While you do own your property, you still need to abide by your HOA’s rules and regulations. Many HOAs often have rules about the landscaping and the changes you can make to the structure or façade of your home
All real estate agents are the same
Not all agents have the skills, knowledge, and experience that you’re looking for. Some agents specialize in buying and selling residential property, while others are focused on commercial real estate. A local real estate agent also has first-hand knowledge of the ins and outs of their community, as compared to an agent outside of the community or area you’re interested in moving to.
