Myths Or Facts About Real Estate
Here is a great blog written by Gary Woltal, Realtor(R) in the Dallas-Ft. Worth, TX area about myths (or facts) we hear about real estate.
One of the Myths mentioned below is to split the difference between the last offering price. Sometimes the difference between the buyer and seller is so small that splitting it can be the right solution for both parties; however, as Gary points out, that is not always the case. Both the seller AND buyer should have looked over a market analysis that has been prepared by their Realtors(R) to ascertain true market value of the home.
One of the Facts mentioned is that 6 months of inventory is the tipping point in determining whether it is a buyers or a sellers market. This critical piece of information is included in the monthly marketing reports that I write for Hernando, Olive Branch and Tate County MS.
If you want a REALTOR(R) who is knowledgeable about the Northwest MS market, give Pam a call.
In the heyday of movie review Siskel and Ebert were just the best. The heck with your newspaper review of a new release, you tended to side with one or the other with their "opinions" of what was right.
In real estate with myths or facts about the way things work a trained REALTOR who works the biz can debunk myths and give you the straight scoop as a buyer or seller trying to navigate transactions with properties. So let's give it a go:
You should close at the end of the month to avoid prepaid interest. MYTH. It is really irrelevant and you pay interest always for the days you live in the house. It could be a cash flow thing for you with closing table money and as lenders they really should just do what suits the buyer's needs.
Always split the difference between the last price offered by the Buyer and what the Seller's number was. MYTH. The buyer may still be coming in far too low with what the true market value of the home is. A pool of buyers will eventually confirm true market value. Unless you have few buyers and hit a stalemate between the two, then splitting the difference makes sense.
I have heard 6 months of inventory is the difference between a buyer's and seller's market. TRUE. In most areas. As inventory heads upward longer than six months supply price appreciation can slow and at 10 or 11 months prices can fall. The Seller is much more in control when inventory is under six months.
A good rule of thumb is NOT to buy the most expensive home in the neighborhood. TRUE. It can hurt sellers on resale cause the neighborhood dollars per square foot over time averages out the low homes and the high homes. If you do have something unique like greenbelt access or on the water or golf course that can be adjusted up.
Is Location, Location, Location generally the MAIN thing that is important? TRUE. In general this is a hard and fast rule but actually comes from the commercial real estate world of corners like for McDonald's, Walgreens, and gas stations. Also modify this in residential thinking to Location, Price, and Terms. If price and terms are messed up, location does not have as much weight.
I don't really care about the school district my home is in cause I don't have kids so it is not important. In general a MYTH. It is important on resale as others may have children. Also higher ranked school districts hold up home values better. The downside to better school districts is you can have higher property taxes through the years living there so you have to net it out if your appreciation over time is worth it. Some buyers also might not be able to AFFORD living in this zone, so an argument could also be made that less prestigious areas offer more buyers than do the higher rated school districts.
So go to your Siskel and Ebert "real estate expert" all the time for the FACTS about a given situation. You will be glad you did.
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