10 Homebuyer Myths Debunked!

By
Real Estate Agent with www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 228209

10 Homebuyer Myths Debunked!

From the first tour or open house to securing a mortgage to closing day, purchasing a home is a complex and daunting process. Here are 10 myths that home buyers should clear from their heads to maintain realistic expectations during the home-buying process.

MYTH #1: Buyers Must Always Put 20% Down

Charlotte home buyer myths from Charlotte's Top Real Estate Agents

FACT: As home prices climb, home buyers have a tougher time accumulating a cash down payment that amounts to 20% of the typical purchase price. The good news is that you can usually get your dream house with a smaller up-front payment. The downside, however, is that you’ll have to buy either private mortgage insurance or government insurance for at least a few years. CAUTION: This insurance can add hundreds of dollars to your mortgage payment each month. Be sure to inquire with a preferred lender to know exactly what your bottom line will be.

 


 

MYTH #2: A 30-Year Fixed Mortgage is Your Only Option

Charlotte Buyers Agents share common myths for home buyers

FACT: Yes, your parents probably had a fixed, 30-year term on their home loan, and they may even have stayed in the house long enough to pay it off. However, other financing options have increased in popularity, giving home buyers real advantages—and much lower interest rates—with 15- or even 7-year loans. Be sure to explore all mortgage options with your preferred lender when getting your pre-approval to buy a home.

 


 

MYTH #3: Cash Buyers Always Win in Bidding Wars

Charlotte Home buyer myths dispelled

FACT: Sure, sellers love the simplicity of accepting a big pile of cash instead of having to deal with buyers who need financing. But an all-cash offer isn’t a guaranteed winner. Home buyers who are willing to outbid an all-cash offer certainly have a decent shot at nabbing the house.

 


 

MYTH #4: Buyers Without Kids Don’t Need to Pay Attention to the Schools

Homes in Top Charlotte school zones

FACT: Even buyers who don’t have school-aged children should think twice before moving to a neighborhood with poorly ranked schools. Great school districts make for highly coveted neighborhoods, so when you’re ready to sell your home in the future, the next buyer may be willing to pay a premium to be in your district. So, before you buy, take time to study up on the quality of the nearby schools.

 


 

MYTH #5: Buy the Worst House in the Best Neighborhood

Charlotte's Top Selling Neighborhoods

FACT: The strategy of searching for a low-priced steal in high-priced ZIP code isn’t always the best game plan. If the cost of making the house livable will be sky-high, or if it has too many drawbacks that can’t be fixed (for example, if it’s located next to an interstate or a noisy business), then the house may not be such a bargain after all.

 


 

MYTH #6: A Home Inspection Is Optional

Top Charlotte Home Inspectors - ASK US!

FACT: Far too often, inexperienced buyers agree to waive the inspection in a hurry to nail down a deal or win in a bidding war. DO NOT fall for this! Skipping the inspection is almost always a mistake. Far from a mere formality, an inspection is a great way to slow down the purchase process, uncover major problems with the house before completing the sale, and find ways to negotiate the final price. Don’t omit this vital step.

 


 

MYTH #7: Spring is the Best Time to Shop for a Home

Charlotte home buyers agents

FACT: Sure, spring is the most active time for real estate sales in the Charlotte area, primarily because both sellers and buyers are preparing for the summer moving season. However, there’s simply no need to wait until the daffodils or the tulips bloom, though, to begin your home search! House-hunting in the summer, fall and winter may actually save you money as a Charlotte home buyer because you’ll be competing with fewer potential buyers, which should anchor prices for you.

 


 

MYTH #8: Skip the Buyer’s Agent and Go Straight to the Internet

Hire one of Charlotte top real estate agents

FACT: While home buyers can certainly find listings online, they may be better off working with a buyer’s agent instead. Buyer’s agents do more than just show what’s for sale. They also give the lowdown on comparables in the market, help steer buyers away from properties that have potential problems, and provide guidance during the negotiation phase. It’s always a smart idea to have an experienced pro on your side.

 


 

MYTH #9: Your Accepted Offer Is Set in Stone

Selling Charlotte Real Estate

FACT: So, the buyers have told the seller what they’re willing to pay, and the seller has accepted. While both parties have agreed to the Offer, it’s still not set in stone. If house-related issues turn up during the inspection, or if the seller asks for an unusually fast closing, the buyer may be able to shave hundreds or even thousands of dollars off the price.

 


 

MYTH #10: Pre-qualification Means an Automatic Loan

Best Lenders in Charlotte - ASK US!

FACT: Before buyers start looking for houses in earnest, they’ll probably go through a bank’s pre-qualification process to find out how much money they can borrow. Be aware, however, that banks don’t always disclose how theoretical this number can be. Once the bank completes a more heavy-duty vetting of a buyer’s finances, it may decide that it’s willing to loan less than originally planned—or even nothing at all.

 


 

BUYERS

Visit www.AtHomesCharlotte.com for more buyer information and to search for homes in the Charlotte Metro region. Your first step should be enlisting an experienced, local real estate broker. Selecting a great broker is not as easy as it may seem. You want to enlist a seasoned real estate professional for your real estate needs. We would love to share our knowledge of the Charlotte area with you…and give you the grand tour too!

Hiring the RIGHT Charlotte Realtor® is critical to your home buying success!

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 07/06/2019 01:00 AM
Topic:
Home Buying
Location:
North Carolina Mecklenburg County Charlotte
Groups:
North Carolina Real Estate
Charlotte North Carolina Area
Buyer Information - What Buyers Need to Know in Today's Market
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HyperLocal Neighborhood and Community Posts
Tags:
charlotte home buyers
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Rainmaker
2,854,136
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Debe.

Number 7-8 and 9 sure ring true in my area.  Pity, some clients do not listen to their agent

Jun 17, 2019 02:11 AM #1
Rainmaker
1,415,617
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

These are appropriate myths to debunk! 

Jun 17, 2019 02:57 AM #2
Rainmaker
4,907,875
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Debe Maxwell, CRS myth #3 brought a smirk!!  it's a falsehood that buyer agents seem to believe.... as a listing agent, my attitude is a qualified buyer is as strong as a cash deal...

Jun 17, 2019 03:14 AM #3
Rainmaker
295,806
Dave Rosenmarkle
Highland Realty - Arlington, VA
32 years of providing fully satisfying service!

In multiple bid situations, it's amazing how many buyers unwittingly throw out the home inspection and live to financially regret it; sometimes for years.

Jun 17, 2019 03:59 AM #4
Rainmaker
5,307,773
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is great advice to share with prospective home buyers.

Jun 17, 2019 04:01 AM #5
Ambassador
3,229,946
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Same here, James Dray - I was telling someone last night - this is what we do, day-in and day-out. However many homes you have bought and sold in a lifetime, we've probably sold that many in a week! Let our knowledge and experience serve YOU!

Jun 17, 2019 04:51 AM #6
Ambassador
3,229,946
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hey there, Kat Palmiotti - and they keep coming up with new ones that just make us shake our heads! 

Jun 17, 2019 04:52 AM #7
Rainmaker
3,201,449
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Debe. Quite the list of true myths. I like number 7. If it were true, I could be off three seasons of the year! I like vacation. Enjoy your day!

Jun 17, 2019 04:53 AM #8
Ambassador
3,229,946
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Oh, that is so true, Barbara Todaro - not only the buyers but, the agents feel they can't compete with a cash buyer. I've won many a bidding war over cash buyers - admittedly with a large portion of them, because cash buyers often think that they will win the bid BECAUSE they are cash so, they come in a little under full list. The other 'primary' reason they lose is they don't care to find out what is important to the sellers.

Anyway, I digress... 

Happy Monday!

Jun 17, 2019 05:30 AM #9
Ambassador
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I totally agree, Dave Rosenmarkle - and they do that with the appraisal as well. That's not as costly if their agent has a good handle on the market but, I see newbies encouraging buyers to throw out the appraisal - and they really shouldn't!

Jun 17, 2019 05:32 AM #10
Ambassador
3,229,946
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Thank you, Roy Kelley ! I hope you're having a great start to your week! 

And, thank you for the re-blog as well!  

Jun 17, 2019 05:33 AM #11
Ambassador
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

HaHa! Well, you know I typically agree with you and this one is a big thumbs up too - I love that idea, Wayne Martin!

Happy Monday!

Jun 17, 2019 05:34 AM #12
Ambassador
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Debe I would say the opposite of those 10 myths is truth most of the time.

Jun 17, 2019 04:20 PM #13
Rainmaker
3,100,425
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Great advice for buyers to resolve some of these myths that we always have to straight them out with them.  Can I reblog this some time.

 

Jun 18, 2019 09:19 AM #14
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Debe:

This is a terrific list. Interesting how these myths persist and buyers still believe them. In our competitive market being a cash buyer is no guarantee - sellers are still looking for the best price, and overall terms and conditions.

Jeff

Jun 19, 2019 08:31 PM #15
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