Popular misconceptions about real estate make many people hesitant to get into the home-buying or -selling process.
When it comes to buying and selling homes, conventional wisdom has its flaws. If you’re considering buying or selling a home, don’t let the following conventional wisdom stop you.
You need 20 percent or more down to buy a home
This is the biggest misconception for millennials, who are often burdened with huge student loans but still want to be homeowners.
After the credit and housing crisis, it became very difficult to get a mortgage. Lenders were strict, and financing killed deal after deal.
Today, however, it is possible to get a low with as little as three percent down.
But while lending standards have loosened you still must have great credit, verifiable income and assets to back you up. But not necessarily need a 20-percent or more down payment.
Home value is whatever the appraiser says it is
The market value of a home is determined by what willing and able buyers and sellers agree on in an open market and arm’s length transaction.
Other than that, a homeowner or would-be seller can only rely on a recent appraisal for a bank refinance.
It’s helpful to understand that a home’s appraised value typically comes in below the market value. Factors such as views, finishes, fixtures or neighborhood specifications can affect your home’s appraisal.
Spring is the best time to sell a home
Traditionally, many buyers come to the market in the spring to secure a new home before the start of the following school year in September. This decades-long trend has made people think spring is the best time to list a home for sale.
But not all buyers today are families with kids. Buyers are single , people who are downsizing, baby boomers and people who don’t need — nor care — about the school calendar.
The best time to sell your home is when inventory is low, and that’s the dead of winter. Later in the year is better because buyers are still home shopping through the holiday season.
Real estate agent have been replaced by online portals
Today it’s more important than ever to have a great real estate agent on your team. And there’s no cost to you, so why not get an experienced pro on your side?
It’s no longer about agents having access to the proprietary data — it’s all out there. But since buying a home is such an infrequent transaction in your life, you need someone through the process who knows the market, understands the process and can act as an adviser to help you interpret the data.
And buying a home is not just a financial transaction. It involves emotions and sentiments, and you’ll want a professional to help diffuse the feelings, navigate the ups and downs, and steer you in the right direction.
Adaption from zillow.com