I thought a great way to start off my new website is to get some of the myths out of the way first so we can move right into the real deal!
Myth #1 - 20% down payment is required
This is so far from the truth, I want you to forget that you’ve ever even heard it! According to a recent survey, 48.6% of people believe this myth and leads to people renting longer than needed!
There are so many options out there these days that lenders can help you find the right one for you. Depending on the type of loan you are doing, you may not even need to do a down payment! Some conventional loan programs offer down payments of 3-5%, FHA can be as low as 3.5%, and for veterans and military service members, VA loans allow for zero down payment!
Considering Millennials spend close to $100,000 in rent by the time their 30, I’d say it’s time to clear up this myth!
Myth #2 - Seller’s should price their home high because you can always reduce it
One of the biggest myths in Real Estate. Sellers want to protect themselves. so they think if they start out over the asking price of their house, it’s a good defense mechanism against selling too low. Pricing a house wrong is basically the kiss of death and can lead to lots of frustration. Buyers in today’s market are quite savvy and do their homework. If they see your home is overpriced, they may not even waste their time looking at all! You have to entice with the price.
Myth #3 - Zillow says it, so it must be true
Has Zillow or anyone working for them ever been to your home and walked through it? Have they ever pulled relevant comps, made adjustments and given you an appropriate range of value?
‘Zillow’s Zestimate’ gives home owners a general starting point for the value of the home, but by no means is it accurate. It can’t understand why some homes on one street would be more value than on the next, or the difference a good school might make in driving some prices up in an area.
Myth #4 - Buyer’s should start with a low offer
Buyer’s often think that throwing in a low ball offer on a home is just a starting point and they can negotiate from there. While there is nothing wrong with negotiating at all, unfortunately a low offer will sometimes upset or offend the seller and they won’t even consider the offer, much less negotiate it. Today’s market is still a sellers market, so they have more power. It’s better to submit your highest and best offer to stay competitive until the market shifts.
Myth #5- I need perfect credit to buy a home
Many buyers are under the assumption that they can’t start the home buying process until their credit score is close to perfect. While better credit is a good thing and can help you get a good rate, most lenders just require a score of 640 to get the process going. FHA loans typically only require a score of 580 score or higher to begin the process, and if you’re under that you’re not excluded, but you will need a bigger down payment to begin the process. So stop hesitating and reach out to one!