If you are thinking about buying or selling a home, you likely have some idea of what the process looks like. But everyone’s real estate experience is different, so you can’t always believe everything you hear. Here are some of the most common myths about buying and selling a home.
Myth: I Need to Make a 20% Down Payment
A 20% down payment is not required to qualify for a home loan. While making a down payment of 20% or more allows you to avoid buying private mortgage insurance and lower your monthly payment, you can qualify for a loan with a down payment that's as low as 3-5%. You'll then pay for private mortgage insurance until you've reached 20% equity in your home.
Myth: I Can List My Home Without a Realtor
Selling your home without a realtor is possible, but only licensed real estate agents can list properties on the MLS. The MLS supplies listing data to all home search websites, so not being listed means not being searchable by the majority of buyers. Selling your home without a realtor also puts you at risk of pricing the home too high or losing money in negotiations. An experienced realtor will guide you through every step of the home-selling process and help you maximize your sale.
Myth: I Don't Need to Make Improvements to My Home Before Selling
Among the most commonly held beliefs is that a home can be sold without making any substantive improvements. Even though this can technically be true, an increasing number of buyers are avoiding purchasing homes that require significant money and work. Because of how high current interest rates are, buyers are already making a large investment and aren’t looking to spend additional money and effort on upgrades. If you want to position your home as a more appealing property, complete some basic improvements and renovations before listing it.
Myth: It's Better to Price My Home Too High
Among the worst mistakes you can make is listing your home at a price well above what it's worth. In fact, making this mistake can cause your home to lose its appeal even after you drop the price. Buyers generally have a budget in mind when purchasing a home, so if your price exceeds that limit, your property is likely to be overlooked. Subsequent reductions in price may indicate to potential buyers that there are underlying issues with the property. Bottomline, if you price your home correctly, you will attract more buyers, and you should be able to sell it faster.
These are just a few common myths to consider when thinking about what you need to buy or sell a home. For more information about buying and selling in our market or to discuss your specific situation, reach out anytime.