It is hardly a little known fact that house hunting has become a part of the digital age. According to the Consumer and Market Trends in Real Estate, approximately 9 out of 10 potential homebuyers start their home shopping online. With so much information floating around the World Wide Web, it’s hard to know which is true and which are false. There are several big home-buying myths out there and it is the job of a great Realtor or real estate agent to reveal the truths and untruths. Here we will address several myths such as the buyer must put down 20%, if you don’t use a Realtor you can save 3% to a fixed rate mortgage is the best option.
Let’s get started on debunking 5 Home Buying Myths:
I Need To Put A 20% Down Payment Towards A Loan
While traditionally 20% is the ideal amount for a down payment towards a loan, there are many options made available for those who can’t put 20% down of the loan up front. Consumers have a lot more options available to them. From a zero down loan type to a 3.5% and 5% down payment, a down payment can be low. For more information on getting a lower down payment and loan options, contact your trusted Realtor that can guide you to a reputable mortgage company or lender.
Buyers Should Never Offer Full Price
It is a preconceived notion that deals should go through a lengthy negotiation process. Most sellers don’t go below 5% of the selling price as most likely sellers are already selling at a realistic price based on comparable sales of homes in the area. There is no set rule when it comes to offering a price. Every sale is uniquely different. One also has to take inconsideration of the market. Is it a sellers market or is it a buyers market? Always hire a Realtor that represents your best interest by signing a buyer’s representation agreement.
Working With The Listing Agent Will Give The Buyer a Better Deal
If getting the best deal is your priority as the homebuyer, then keep reading. The listing agent works for the seller. It is their job to get the seller the best deal. The selling agent or buyer’s agent works for the buyer, getting the buyer the best price and handles the entire home buying process. Check out the article on our site that discusses the Buyer’s Representation Agreement and how it benefits every potential homebuyer.
You Can Save 3% By Not Using a Realtor
Buyer / Seller Beware; homebuyers or sellers trying to save money often think that by cutting out the middleman, they will save big. Unless you are an experienced real estate agent, this statement is quite the opposite. Using a Realtor, whether it be selling and buying, can save you a great deal of money, hassle, and time. Using the expertise of a qualified Realtor means getting the best negotiation, communication, and industry knowledge. An agent will work on your behalf.
A Fixed Rate Mortgage Is The Best Choice
Now a days the average time frame a family resides in a home is approximately 7-12 years. While not an exact timeframe, a fixed rate mortgage or adjustable rate mortgage is totally dependent on each individual situation. With a fixed rate your interest rate is set for the entire length of the loan and a variable rate/adjustable mortgage rate is offered at a certain rate then fluctuates based on the mortgage terms. A lender or mortgage company can provide you with a financial picture and assist you in deciding which type of loan best fits your budget.
As you can see what is best for one person is not always best for another person. The only tried and true way to get the best guidance and assistance is to choose the right Realtor. Contact us today for the best home buying advice, tips, and assistance!