Is there some Old Real Estate Wisdom that one should NOT listen to? Is it time to BURY this old and BAD real estate wisdow? As they say in Wisconsin "You Betcha!". You may want to take some old home buying advice "lightly". Some old Real Estate Advice should possibly be put out to pasture. and buried in a pit.
Time to BURY BAD Real Estate Wisdom
Burying BAD and worn out Real Estate Wisdom. Photo: Ronald Plett Pixabay
Buying a home is a major life decision, and for many people, it is the largest purchase they will ever make. Therefore, as a home buyer, it is important to carefully consider all advice that you receive in light of current market conditions and your own needs, circumstances, and desires. Inevitably, you may receive some advice that is simply not right for your situation, BURY IT!
Bad Real Estate Wisdom?
Some advice may fit into the "old wives tales" category. If you hear these common and often offered tips in particular, it may be best to take them lightly:
1. Buy the “worst” house in a great neighborhood. This advice is based on the old real estate adage of “location, location, location.” The logic is that if a house needs fixing up but is in a desirable area, its value will increase with time and some improvements. This may be true in some situations, but unless you are looking for an investment property, it is probably ill-advised to buy a home that you don’t like or that doesn’t suit your needs. In addition, if your budget does not allow for renovations immediately, you may feel stuck living in a “fixer upper.” As you begin your home search, have a clear idea of your deal breakers and avoid properties that do not meet your minimum requirements—even if you like the neighborhoods in which they are located.
Endless Reapairs Buying "Worst" House in Best Neighborhood
Sometimes, buying the wost home in a great neighborhood means one is doing home repairs "forever"
2. Start with a lowball offer. All buyers seek to negotiate the lowest possible price on a property, and some use the strategy of making a very low offer at first in order to gauge how much the sellers are willing to drop their price. While this may be effective when the sellers are desperate or the current real estate market is a “buyers’ market,” lowball offers often come across as insulting. This could set a hostile tone for the negotiations or cause the sellers to refuse to even extend a counteroffer. If you like a house, offering a fair price in light of its condition, the current market, and your financial situation may result in a better outcome.
Low Ball Offer Insults Seller
Please listen to my second offer, I was only kidding on the first offer
A lowball offer, that is obviously below what other similar homes have recently sold for could anger the seller causing them to not counter and Buyer saying "Forgive Me" to buy their dream home that may slip away to another Buyer that offers the true "market price".
3. You don’t need a home inspection, save your money. Some buyers hear that forgoing the home inspection is an acceptable way to save money—but it could end up costing them far more in the long run. By waiving the home inspection, you essentially sacrifice the right to request that the seller make additional repairs besides what they agreed to when the initial contract was signed. Often, the costliest problems are those that are not visible to the naked eye, such as flaws in a home’s foundation. Therefore, hiring a licensed inspector is an essential way to ensure that you will not soon be facing major repairs—or at least give you a chance to negotiate with the seller to either make repairs or lower the price.
4. Don’t buy a home when the real estate market is strong—prices will come down soon. The economy is cyclical and average home prices fluctuate over time. However, waiting for a downturn when you are otherwise ready to buy a home could be a mistake. For example, your employment situation could change during a recession, thus weakening your purchasing power, or you may currently be wasting money paying rent. If you are financially and emotionally ready to purchase a home, it may be best to act swiftly, regardless of the current market.
Sources of some information: realtor.com & cheatsheet.com
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