Consumers in today’s market tend to have a lot of assumptions about the housing market. Many times, assumptions are incorrect and cause them to miss out on a great property deal. Following are some of the assumptions and opposing viewpoints on some assumptions:
20% Down Payment - Some buyers want to wait until they have a 20% down payment. This may cause them to miss out on a good deal. Historically homes prices keep rising over the long run, therefore, their 20% down payment becomes larger. Since this is true, need to move forward purchasing a house in order to build equity. Building equity from buying a house is an excellent way to build a strong financial base for your retirement years. Remember, it is always possible to eliminate Private Mortgage Insurance (PMI) when you reach 20% equity on a conventional loan. If you have an FHA loan, it probably will be possible to refinance your loan at a later date eliminating mortgage insurance after you achieved 20% equity in the property.
Online Home Estimator – Many potential home buyers rely on apps to get their information about housing. Many times, these apps provide incorrect information. Recommend double checking the information provided by these providers. There are several providers of these types of programs, with some being more accurate than others. For example, they do not always consider improvements that have been made to the home, and the estimated property value may be skewed due to inadequate data available and poor sampling techniques used developing their results. Recommend using a real estate professional, this person should be able to provide a more reliable home value figure.
Too Selective Concerning Homes - Some home buyers tend to be selective by not considering some homes to purchase. This may be due to the fact that a house does not have everything on their wish list. This list should be the starting point with the willingness to compromise on some features. Here is a time where a realtor can help their clients distinguish between must-haves and nice-to-have.
House Based on Price Only – House that is priced low and needs TLC, may be a good buy for a handyman home buyer but not a non-handyman buyer. Be sure to factor in repair, utilities, taxes, and association fee cost to determine if this a good deal. Doing this will determine whether the property will fall within your budget.
Buyer and Seller Don’t Agree on Price – Sometimes both buyers and sellers need to rethink their decision instead of losing a deal when there is only a few thousand dollars difference between the listing price and offered dollar amount. Buyer needs to think about the cost of finding another home and think how they might adjust their finances to make the deal more feasible. Seller needs to consider the possibility of not receiving that good of an offer from another buyer, as well as, think about the additional cost he will incur by waiting for another buyer.
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