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Fact or Fiction?

By
Real Estate Agent with Knipe Realty NW

There are many Real Estate myths, common misnomers and unknown facts circulating about Real Estate.  Some of these concepts go as far as contradicting themselves.  How does an intelligent consumer sift through all that they are fed to get the real scoop?  Many first time buyers are overwhelmed by the number of "knowledgeable" friends and family members who want to help them to make good decisions.  Unfortunately, many times Aunt Ida's advice is contrary to Brother John's advice which is the complete opposite of co-worker Sally's advice. 

Some of the concepts I would like feedback, questions and comments on are:

•·         "You will save money by skipping the buyers agent"

•o   Actually, commissions are typically negotiated when a home is initially listed whether a buyers agent is involved or not so not only is the listing agent getting paid more, you leave yourself without someone representing your needs and negotiating on your behalf.

•·         "Mortgage Brokers are more expensive than going directly to the bank"

•o   Actually, Mortgage Brokers have access to thousands of avenues of financing where the bank only has their in house packages.  You may pay less in the short term on fees but you may pay much more in the long run. 

•·         "It is best to purchase when the market has hit bottom"

•o   When does that actually occur?  Typically, we know that market has hit bottom once prices begin to go up (meaning you have missed bottom).  Interest rates will likely climb during this time as well so your savings, if any, will be minimal.  In this market, the best time to buy is now!

There you have it, a few examples of what I am looking for.  I would love to hear your thoughts and questions about circulating rumors!

Laurie Logan
Keller Williams Realty, Inc., Broker Associate - Madison, WI
South Central WI Real Estate

Hey Angela,

I remind people that Real Estate is like so many other things - find an expert you trust, and listen to them!    Not too tough...

Take care,   Laurie

Oct 10, 2008 04:39 AM
Brien Berard
Remax Professionals Laurel MD - Laurel, MD
Maryland Real Estate Agents - Laurel Real Estate

A couple things:

I understand Mr. Buyer you are trying to time the market.  Can you explain to me how you are able to time interest rates and specific buyer programs?

The second thing, Angela,  is what you said about mortgage brokers.  I don't know if that is accurate, at least I would not include it as fact at this point.  I believe good mortgage brokers are hard to come by. I do believe they exist, you just have to know your stuff to know wheather they are blowing smoke or not.

I want to add more, but I have to pick up my daughter.  Goog topic, I will be back later.

Oct 11, 2008 01:59 AM
Suzanne Champion
N.J. Realty - Westerville Ohio - Columbus, OH

The problem with these myths is that the assumptions they are based on are all wrong.

Simply put - there are no guarantees the seller's agent is going to give you a break, and would the risk of not being represented on this large investment be worth the maybe $40 per month in savings?

Mortgage brokers are there because every buyer's needs are different.  Some may want more choices, what's wrong with that?

And as Brien points out - not only does nobody know where the bottom IS, but buying a home isn't about price, it's about price and TERMS.

Oct 11, 2008 02:42 AM