BUSTED! We’ve got the low-down on some common real estate myths and the truth behind them.
Myth: Homes can only “pass” or “fail” inspections.
Truth: The home inspector’s job isn’t to pass or fail your home. They are there to outline potential problems and issues that need addressed for health and safety. They will also give you an evaluation with an estimation on the remaining economic life for some key systems like plumping, electric, HVAC and roofing. Think of it like a health check-up for your home instead of a test.
Myth: It’s best to overprice your home for wiggle room during negotiation.
Truth: Although a high primary price point is a good negotiation tactic, it may not bode so well in the real estate market. In fact, overpricing your home could cause potential buyers not to even consider it, leaving your home stranded on the market for longer than you anticipated. By competitively pricing your home, there is a greater potential for multiple offers and a price increase during bidding wars.
Myth: Buying a new home means less repairs.
Truth: It can be true that the extent of repairs on a new home might be less than that of an older home, but that doesn’t mean that you aren’t going to encounter multiple hiccups in the first few years. Modern home builders are pushed to maximize profits and they do that by building quickly and with the least expense. This can result in poor craftmanship and overlooked details like countertops that haven’t been sealed correctly or sections of walls with insufficient insulation.
Myth: You need a 20 percent down payment plus closing costs.
Truth: Having the full 20 percent and closing cost payment is ideal, but for the majority of home buyers, it isn’t practical. There are many programs that allow you to only put down 3.5 percent and a small portion of the closing costs. Some of these options include FHA mortgage, VA mortgage, conventional loans and USDA home loans.
Myth: School districts don’t matter if you don’t have kids.
Truth: Not only does the school district matter when you purchase your home, but it also really comes into play when you sell your home. Whether you have kids or not, you are still going to be required to pay school taxes for the district you reside in. If they are more than you can afford on a monthly basis, then that can determine where you purchase a home. On the flip side, when selling your home in the future, houses in more prominent school districts have the potential to sell faster and at a higher price.