Debunking Home Buying and Selling Myths

Home buying and selling are two of the most important financial transactions most people will ever undertake in their lives. If not partnered with the right agent, the process can feel complex and stressful, and there are many myths and misconceptions about the process that can make it even more confusing. In this blog post, we will debunk some of the most common home-buying and selling myths.

Myth #1: You Need a 20% Down Payment to Buy a Home

One of the biggest myths surrounding home buying is that you need a 20% down payment to purchase a home. While a larger down payment can help you secure better loan terms and avoid having to pay for PMI, there are many loan programs available that require as little as 3% down. Additionally, there are programs available for first-time homebuyers that offer down payment assistance.

Myth #2: You Should Wait for the Housing Market to Improve Before Buying

Many people believe that they should wait for the housing market to "improve" before buying a home. However, trying to time the market is a risky strategy. While housing markets are cyclical trying to predict exactly what the market will do is not an exact science. Many people were worried about what the pandemic would do to the housing market when it first happened, and it ended up being record-setting years in the industry. Additionally, there are pros and cons to every market, so just because there is one factor that isn't ideal now there could be other benefits that work for you now and vice versa. For example, during the pandemic interest rates were at record lows but many buyers were having to enter bidding wars and waiving certain contingencies like inspections and appraisals.

Myth #3: You Should List Your Home at a High Price to Leave Room for Negotiation

Some sellers believe that listing their home at a high price will leave room for negotiation. However, this strategy is outdated and can easily backfire. Overpriced homes often sit on the market longer, which makes buyers feel like there is something wrong with it and as if they have more negotiation power. So a lot of what we have been seeing in recent times is that sellers will get LESS when they price high than if they price STRATEGICALLY and set themselves up for a higher chance of multiple offers which often results in a higher price with better all-around terms.

Myth #4: You Can't Sell Your Home in the Winter

Many people believe that the winter months are a bad time to sell a home. While it's true that the housing market tends to slow down during the winter months, there are still plenty of buyers in the market. Additionally, selling your home during the winter can help it stand out from the competition, as there may be fewer homes on the market to compete against.

Myth #5: You Can Save Money by Selling Your Home Yourself

Some people believe that they can save money by selling their homes without the help of a real estate agent. While it's true that selling your home "For Sale By Owner" can save you on commission fees, it can cost you your peace of mind & MONEY. A local expert would be able to save you from all of the time-consuming, heavy leg work that comes with selling a property (the marketing, the showings, the paperwork, the processing, etc.) With their expertise in the market and access to a larger buyer pool, they can suggest the best price to market at for maximum exposure and appeal and increase your odds of getting multiple offers which ultimately gets you a better close price and more ideal terms.

In conclusion, buying and selling a home can be a complicated process, but understanding these common myths can help make the process smoother and less stressful. Remember to do your research and work with a trusted, local real estate professional to help guide you through the process.