Real Estate Myth or Fact, have you ever wondered how a myths gets started?
I have heard some dousy's over the years. Some make me laugh while make me want to scream no! Where did you hear that?
Myths may be hard to break but facts are facts.
- I especially like the one where every seller has to respond to every offer they receive. The lack of response in the contractual designated time frame is a response. NO, the offer is void because of no response. It may be courteous to respond, or counter but it is not a legal requirement.
- Easements automatically drop off if they are not used. NO, again a registered easement, unless having a written expiration date in the easement language stays with the property.
- Land owner surrounding a land locked property have to allow you to access your property. Wrong again, there is no legal reason in Michigan a land owner must allow you access to your land locked property. Have a helicopter?
- You must be notified if someone dies in a home? Nope, it falls under stigmatized property and the seller is not required to tell you about a death in the home.
- You can put down any dollar amount you want as a good faith deposit on any property. No, wished this was true but on certain government and bank owned properties a specified deposit is required to have your bid reviewed. This is not to say, that in Michigan, legally your good faith deposit can be a little as you want as long as it is tender of good faith. The contract will qualify for that. The truth is most seller will not take your offer seriously with a deposit of $1.00.
- A newly licensed agent and a career agent have the same real estate training? In most cases this answer would be no as well. Speaking to the letter of the question. Agents must attend continuing education classes. A new agent has learned license law. Not presentations, negotiations or inspections, appraisal issues that will help their client, if they have a client yet. Most agents bring skill sets from other vocations. They did not graduate from High School or College and set their goal to be a real estate agent, in most cases.
- Sellers have to tell the truth on seller disclosures so seller disclosures are always true. Do I wished this was true yes. Is it always true? NO. That is why you have inspections, to find out the condition of the home before you purchase. Not every seller has lived in the home they are selling. Some people are selling investment property or their parents home. They may not have first hand knowledge of the real condition of the property. Some sellers give vague answers knowing a problem exists. Most sellers are truthful and offer a snapshot of the properties condition with seller disclosure statements.
- inspections, all inspectors are the same? No, some inspectors were builders and have a supreme knowledge of home building and repair. Other purchased a franchise and learned a checklist and memorized a guideline to recite. In Michigan, as of today's writing home inspectors are not licensed. I think that day is coming. Use common sense when selection a home inspector. The home you purchase could have hidden flaws that only a seasoned home inspector with proper training and knowledge will find.
- All updates and repairs will help you get more for you home when you sell? No, some upgrades and repairs are considered personal comfort choices while other repairs will be viewed as routine property maintenance. Ask your agent what updates will improve your profitability when selling your home.
- I you accept a contract, inspections are approved and the loan is approved you can count on your home selling? NO, the fact is most lender pull one last credit it report the day of close to see if any changes in the buyers credit have been reported. Buying a new car to match their new home, furniture, that beautiful boat all can stop the lender from funding the loan. You are basically out, your sale is off, done, over. The bank even checks job status. I had a buyer laid off three days before close. The sale fell through. Nothing is certain until you have the check in your hand. Michigan even has a 3 day rescission after closing in many cases. Don't spend your money until you deposit the check!