5 Myths About Buying a Home
Home buyers face many obstacles, one of the most prominent being misinformation. When confiding in friends, family, and online resources, prospective buyers come across many myths about buying a home with little to no truth to them.
Trusting experienced industry professionals like those at Mark Spain Real Estate will protect you from home-buying myths. With decades of valuable experience, our agents promise to deliver verified market insight to help you make informed decisions about your home purchase. With our help, you can tune out others’ opinions and get straight to business. Read below for the top five myths about buying a home.
5 Myths About Buying a Home
Myth #1: Your Down Payment Must be 20% of the Sale Price
Home buyers are exposed to a wealth of misinformation regarding down payments. Historically, industry standards have pushed buyers to forth 20% of the home’s sale price for their down payment. However, things have changed. Though maximizing your down payment for lower monthly mortgage payments and better interest rates is always best, expectations have lightened over the years.
Depending on your type of home loan, you may be expected to pay as little as 3% for your down payment. Buyers now can enroll in down payment assistance as well, where they can obtain grants or loans on a local or federal level. Many think these programs are only meant for first-time home buyers or low-income households, but that’s also a myth! You can qualify in other ways, so why not exhaust all of your options?
Myth #2: The Asking Price is Set in Stone
As a home buyer, you should never be too daunted by a home’s asking price. In most cases, sellers are willing to negotiate their price, particularly if you present exemplary credit, mortgage pre-approval, and a substantial down payment. In this case, they might be willing to negotiate their asking price rather than holding off for another offer.
If you buy a home in a competitive market, this myth still holds no ground. However, this is because you might have to offer above the asking price to buy a home. Doing so is a foolproof way to be a contender and win over sellers who have multiple offers on the table. If you don’t have the financial bandwidth to offer the asking price or more, we recommend setting your budget slightly lower to accommodate your market’s competitive landscape.
Myth #3: It’s Cheaper to Rent than to Own
There’s a lot of debate about renting vs. buying a home. While some believe renting is the cheaper option, this is only the case for short-term rentals. If you plan on renting for several years or more, you’re better off buying a home. Though this will come with additional expenses like maintenance costs and property taxes, it will be a worthwhile investment.
A home is a valuable asset that increases in value over time. As a homeowner, you will capture your home’s appreciating value rather than throw your money towards rent every month and gain nothing in the long run. So, if you’re in a good place to buy a home and market conditions are stable, you might as well make the jump and invest!
Myth #4: Fall and Winter are Bad Times to Buy a Home
Most real estate goers believe spring and summer are optimal times to buy a home. However, winter and fall should not be written off. Because spring and summer are popular times to buy, these seasons often reap higher home prices and more competitive buyer pools. Meanwhile, those who buy in the winter or fall will see more room for offer negotiations, less buyer competition, faster closings, and cheaper moving costs. So, while you may have more limited listing options in the cooler seasons, you might have a better chance at striking a sweet deal!
Myth #5: You Don’t Need a Real Estate Agent
If you’re considering taking on the home-buying process alone, think again. We can guarantee an experienced real estate agent will make your house hunt much easier. From providing valuable market intel to setting up home tours, a buyer’s agent will aid your home search in more ways than one. Our team at Mark Spain Real Estate offers exclusive insight into the home-buying process, with extensive experience in some of the most competitive U.S. real estate markets. With our help, you’ll find your dream home in no time!
Buy a Home with Mark Spain Real Estate
Are you interested in buying a home? Put your trust in the industry professionals at Mark Spain Real Estate! Our agents promise unparalleled client satisfaction as we guide you through the home-buying process. Check out our Guaranteed Offer Program for the potential to receive a competitive cash offer on your home in only 21 days. Contact our agents today!