3 Common Home Buying Myths In Salt Lake
I'm not sure who starts myths, I'm not sure if anyone does. It really doesn't matter. What matters is, some of those could be dangerous and could end up costing buyers and sellers in Salt Lake a ton of money.
It reminds me of that old game we used to play where someone whispers something in someone else's ear and they in turn whisper what they think they heard in another set of ears and progressive line of listeners and repeaters until at the end what is repeated at the end of the queue is repeated. Surprise, the words that come out at the end bear slight resemblance to what started the chain of communication.
Here are some that we deal with every day.
1. I’ll make a Lowball Offer They Can Always Counter
This myth is usually followed with statement like 'it never hurts to ask' or 'they can always counter'. The problem with that statement is, it's not necessarily true. I have seen it hurt on many occasions, and in other deals, end negotiation on the spot
I have seen sellers so wounded that they will NOT continue negotiations and in fact instruct their agent not to even call with a rejection. Other times the agent is instructed to counter at MORE than the listed price. It is true that the buyer is typically in the driver’s seat during a slow market, but he or she still shouldn’t insult sellers. And that is the risk you take by offering an absurdly low price on a home.
Homes are full of emotional attachments for most owners. Offering a rock bottom price may be offensive to the seller who takes pride in the home. Even if the seller counters the offer, giving you a chance to come in higher, the damage may already be done. The seller doesn’t like you, and the transaction, if there is one, may be tainted.
What happens if you determine the house needs some repairs? After dragging the homeowner’s price down and offending him in the process, it’s doubtful he’ll be amenable to making repairs unless absolutely necessary.
Figuring out how much to offer on a house involves walking a fine line between insultingly bargain-basement offers and maintaining the possibility of future negotiations.
2. Smart Buyers Wait until the Market hits the Bottom
Trying to time the real estate market is like picking stocks, or handicapping horse races. not easy even for the pros, yet daily I hear homebuyers say they want to wait to purchase until prices are at rock bottom.
Unless you're a fortune teller or some other form of psychic , you may not know when the market hits bottom? Even the experts are only able to offer educated guesses as to when a market has reached its lowest level.
Think about this: the only way you will know that the market has reached its lowest level is when it starts to go back up. By then, it’s too late and you’ve missed the best buying opportunity.
3. I need to wait until I have 20 Percent to Put Down
For years now we’ve been hearing about how the bubble in the mortgage market caused such a meltdown and put the housing market on shaky ground. The result was more stringent lending standards. While that is certainly true, but........... the facts have been greatly exaggerated. in other words it's another real estate myth.
Of coarse, the more down payment the better; you won’t be required to purchase private mortgage insurance and you’ll get a better interest rate on your loan – but folks are still buying homes without one. As an example, in Salt Lake there are many loans available that require only a 3% down payment and Veteran’s Administration and USDA loans still require no down payment for qualified borrowers. (Tooele is one of the few communities in the Salt Lake area that qualify for 100% financing)
With large national real estate sites giving out bogus home values. ( you know who I'm talking about) and myths passed on from friends and family, buying or selling a Salt Lake home is tougher than it should be. In fact the real estate process is riddled with bad information.
Rely on a good local real estate agent for the facts and buying a home will be much easier.
I would like to be that agent. With over 40 years experience and with a cadre of associates that are committed to each transaction and each client; we can help.
Call me Gordon Sloan 801-567-0946. I know there are more than 3 common home buying myths in Salt Lake. I can show you what they are.