May 05, 2016 - 05:01
There are many misconceptions about real estate that keep people from selling their home or even buying a home. When you hear a statement about real estate being said by someone that does not have much experience in the field, be careful and always do more research before you come to a conclusion. There is not much truth to these misconceptions, so if you are considering selling or buying a home don’t let these statements stop you.
You don’t need a real estate agent.
Yes, in todays world a lot of information is online now and you can easily pull up homes that are for sale in just a click. But having a lot of information can also get you confused on what your next step should be as a seller or buyer. Since buying a home is such an infrequent transaction in your life, you will need help along the way from an agent who knows and studies the market, understands the process and can act as an adviser to help you interpret all the data. Also, if you are a seller, a realtor can help you market and sell your home much more faster and for more money rather than doing for sale by owner. So in reality, today is more important than ever to have a real estate agent on your team.
Don’t sell now, it will appreciate over time.
There are parts in your city where properties do appreciate in value over time but there are also some that depreciate, and hopefully it is not yours. The real estate market is almost always unpredictable, so making the general statement that “ your property will appreciate in value” is not entirely reliable. For the most part, appreciation will be aligned with inflation and in the U.S inflation has averaged about 3.2% a year since 1913. So how do you know if the appreciation is more than 3.2% a year? That is where you need to talk with an agent that is familiar with your area, they will be able to give you a better idea on what to expect in numbers. But assuming that your property will appreciate in value with no real research is a bad move and could cause you to even lose over time.
You need 20% down to buy a home
This misconception stops many people from getting involved in anything that has to do with buying a home. 20% down on any home is a big portion of money and I am sure many of us don’t have that kind of cash lying around. But good thing that this statement is not fully true! After the credit and housing crisis, it became very difficult to get a mortgage and lenders were very strict with financing. But today it is possible to get a loan as little as three percent down. Of course you will need great credit, verifiable income and assets but it makes it much easier than having to put 20% down.