We all know that dealing with transactions in real estate can get tricky and confusing. You are dealing with something that will affect your finances and future. All your hard-earned money is being transferred and moved around. It is ESSENTIAL that home sellers and home buyers have a great team of professionals behind them guiding them through each question and decision they are faced with. But don't forget to have fun in the process! It is an exciting time for you and your family. Here are seven myths you might face in your buying/selling journey! Do you know your stuff?
Test your Real Estate Knowledge
Can you tell the difference between a myth and a truth? Here are some common misconceptions, and some realness when it comes to Real Estate!
It is possible to purchase a home with no down payment.
While this may seem like a great deal, make sure it still fits your budget. Remember: your interest rate might be higher and the total amount of your loan will most likely be greater. Colorado has some great down payment assistance programs, but it is always a good idea to save at least 5% down for your new home.
The price of the house includes all budgetary needs.
The majority of your expenses will come from the price of your home, but you cannot leave out closing costs. Closing costs can range from 2-5% of your home's price, on top of your new homes price. The random fees can add up! They might include a home inspection, Private Mortgage Insurance, Land Transfer Tax, property tax, moving costs, appraisal fee, administrative fees, and others! On a home that costs $300,000, your closing costs could rage from $4,500 to $15,000.
The real estate market is seasonal.
You may have heard that it is better to buy in some seasons versus others, but it really isn't! It is really about things such as supply and demand and what the market is doing at the moment. The real estate market might be very different in another city as compared to yours! Rather than basing everything on time of the year, talk to your Realtor to best determine where the market is and what your best options are.
Better credit means better interest rate.
Lenders need to understand the risk they are taking, and your credit score is a good indication of that risk. Your credit score is a window to your financial wellness, the higher the score, the better mortgage interest rate you will get. The higher the credit, the lower the risk.
Wait until spring to list your home.
While spring is known to be busy in the real estate world, fall is just as important. Some buyers need to wait to build their score or are saving for their down payments, and this is the season they take action! They will want to buy before those crazy snow storms hit, making it a great time to list for a quicker sale and higher selling price!
Listing your home very high is good because you can negotiate.
Overpricing your home can be very detrimental to your home selling. If the price is exaggerated, buyers won't even consider it--or worse--see it. And if you are needing to sell in a time frame, this won't work in your favor. Most home buyers have access to platforms that will automatically filter their price range leaving your home behind. With the price point being one of the most important factors to buyers, make sure you talk to your Realtor about getting a comparative market analysis on your home so you can price your home correctly!
If you have mortgage insurance, it will protect you from any issues.
This is a tricky one! Most mortgage loan insurance is protecting the lender, not you. It is protecting them against defaults on payment. If you have put down less than 20%, then you will most likely have to purchase PMI, or Private Mortgage Insurance. This can usually be paid in full by you, or can be lumped into and broken down into payments in your monthly mortgage payment.
It might be time to brush up on your real estate knowledge (especially if you’re looking to buy or sell)! Fortunately, Nuvill has certified experts for that exact reason. Contact us to talk to a real estate professional who can answer your buying and selling questions.
Pretty good! You certainly know a thing or two about real estate, but you still have a lot to learn. Fortunately for you, Nuvill has experts who can fill in the areas you don’t know as much about! Our real estate professionals can answer any questions you might have about buying and selling in today’s market. Contact us today to get started!
You really know your stuff! Knowing myths like these can be vital to doing it right when it comes to buying and selling a house. But unfortunately, these are just seven of the more common myths, so be on the lookout! If you have any questions about buying or selling, Nuvill has you covered! Contact us for reliable information about real estate--no myths here!Call Us!