Buying or selling a home is a skill that takes practice and research, just like any other. If it’s been several years since you bought or sold a home, the market, laws, and standard procedures have likely changed. The fact that you’ve landed on this page demonstrates that you already have what it takes to become an informed buyer or seller.
I don’t recommend buyers and sellers do all the work themselves–that’s what agents are for, after all! But it’s vital to educate oneself a bit before diving into such a complex transaction. Any good real estate agent will review this information with you at the beginning of your relationship.
Myth 1: I can just walk into an open house and get the information I need from the listing agent.
Truth: Listing agents are fantastic resources–for the sellers. If you’re already working with an agent and you walk into an open house solo, the agent there is going to assume you’re “unattached”. This can send the wrong message to both parties. Just send your current agent a message that you’d like to see the home in question and they’ll arrange a viewing.
Myth 2: Seeing homes out of my price range is always a bad idea.
Truth: It’s wise to stick to your budget and not torment yourself with expensive homes, but there is always an exception. Some sellers mistakenly price their homes too high, thinking they will just negotiate down to true market value. This causes the home to be on the market for too long and miss out on buyers who would otherwise be interested. Ask your agent to keep an eye out for homes like these–he or she will be able to see the clues before setting foot on the property (hint: one indication is the number of days it’s been on the market).
Myth 3: I can borrow money from a relative to help with the down payment.
Truth: Yes, you can do that. However, a lender is going to find out if any of your income is borrowed since it’s common for them to request two months of bank statements–and they will certainly notice an oddly large non-payroll deposit. This will be calculated in your debt-to-income ratio. So for those looking to buy a home below their means, it could be a great tactic. For those seeking a home right at the top of their monthly budget, it could backfire.
Myth 4: The best offer will be the highest offer.
Truth: There is more for a seller to consider than just the offer price. The seller’s ultimate goal is to get a fair price for their home with as little hassle or delay as possible. A home loan or cash offer that isn’t contingent on an audit or inspection clearance means smoother sailing during escrow. A home loan with a high percent down will more likely be approved than one with very little down.
Myth 5: All real estate agents offer the same breadth of services.
Truth: Almost all agents offer basic, must-have services for their clients, but not all agents go above and beyond. A great seller’s agent won’t hesitate to water your lawn to perk it up before an open house. A fantastic buyer’s agent will meet with your contractor so he can take measurements before you have keys to the new house. Any agent worth their salt will know the local area incredibly well and can offer you invaluable insights.
- Contact utilities, alarm company, and other providers such as cable and Internet to begin your services.
