Let’s look at some common myths about buying a home…
Sometimes I am amazed at how some of the information floating around the internet about buying a home can be so wrong. Just because you read something on the internet does NOT mean it is true.
Well, except for this!
Some of these myths might stop some people from realizing the personal and financial rewards of owning a house. To clear things up, here are some myths about buying a home that need BUSTING:
Renting is Better Than Owning
Maybe it is and maybe it is NOT!
With the low mortgage rates available today, it is possible to have a monthly mortgage payment that is LOWER than what you would have to pay to rent a similar home. If you can buy a home that fits your budget and have comfortable monthly payments, then buying could be better for you.
However, you cannot forget about the other expenses that come with owning a home. Only you can decide if buying a home makes sense for you.
You Have to Live Somewhere
It doesn’t matter whether you rent or own, you have to live somewhere. You can either pay rent or you can make mortgage payments. What is best for you goes beyond just the financial aspect.
One thing that many people forget is the fact that renting does not allow you to build equity. Rent is always going to be money you spent with nothing to really show for it. But mortgage payments that add to a home owner’s equity are more like money saved.
The ability to build equity into a house that you own is like paying into a savings account – if you buy a home for $100,000, and pay down your mortgage to $75,000 in 5 years, you’ll have $25,000 in home equity. If you sell your property down the line, any equity that the property has accumulated will provide you with more profit from the sale of the home.
But if you have been renting, you have NOTHING to show for the money you paid.
I Will Use the Home Inspection as a Negotiation Tool
I have seen a disturbing trend in the last year or so. Buyers seem to think that they can use the home inspection as a way to get either concessions on the contract price OR ask for outlandish amounts of repairs to be made. So let me ask…
Are You trying to Buy a Home Or Piss the Seller Off?
I will be the first to admit that home inspections are a MUST when buying a home. A buyer must realize that if they ask for too much as a result of the home inspection, the seller may become VERY difficult to work with.
Savvy buyers will make an offer that is contingent on the acceptance of a home inspection report by the buyer. This is reasonable and very understandable. Some buyers think the sellers are responsible for any issues that show up on the inspection report. This isn’t always true. Often the seller will have to make certain major repairs that are lender required.
Some Things Are Negotiable
A buyer may ask the seller to fix every minor issue that the home inspector finds. Sometimes a seller will take too many repairs requests the wrong way. They may take it personally and respond in an emotional way.
If it is a major problem, then sure, it is reasonable to ask that the seller either fix it or lower the contract price. But nitpicking the seller about every little thing can back fire. The seller can essentially refuse. This leaves the buyer with the decision of whether or not to continue with the offer anyway.
I have been selling real estate for quite a while. So it stands to reason I have seen lots of homes. Strangely I have never seen a home that is perfect…
Looking for a Reason to Say No
It seems that some buyers are looking to cross a house off their list for the tiniest thing. Some buyers focus too much on all the little things that may be wrong about a house. You should look at all the things that are right about the home.
Searching for a home is about finding an acceptable home. If you are looking for the perfect home, then you probably will never find it.
You must accept that no home is perfect. An experienced buyer’s agent can help you identify issues that are deal-breakers. A good buyers agent will help you keep some perspective by separating irritating details from the big picture.
I Don’t Need Any Help
When you are buying a home you really need someone with experience and knowledge on your side. Buying a house is one of the biggest financial decisions you can make. So why would you go it alone?
You may think that you can find all kinds of information on the internet about home buying. You can use some of the websites with home values. But…
Information Is NOT Knowledge and Experience
A Buyers Agent represent buyers and works to get them the best possible property at the best possible price and terms. The Buyers Agent is working for the benefit of the buyer.
Being represented by a Buyers Agent will give you the benefit of their professional skills, experience and knowledge. A Buyers Agent is going to help you and put your best interests first.
It’s always in your best interests to have a REALTOR representing you when buying a home. With so much money involved, you want to have someone on YOUR side.
Step Into My Parlor Said the Spider to the Fly
Some buyers think they will get a better deal if they deal with the Listing Agent. I just told you about the advantages of using a Buyers Agent. And guess what…
Dealing With the Listing Agent is Not The Best Option!
The Listing Agent works for the seller. The Listing Agent’s job is to get the best price and terms for the SELLER. The Listing Agent may be helpful or even friendly. However, the Listing Agent is NOT on the buyer’s side.
Make no mistake who the Listing Agent is working for.
You may think that going to the Listing Agent is a good option.
And it IS a good option…
For the Listing Agent and the Seller!
The Take Away
These are just a few of the home buying myths that can cost you money IF you choose to ignore them. Please take my advice to heart and don’t fall for any of these house buying myths!