Several of these myths have been mentioned by me previously, but in a current article written by Randy Templeman for Today’s Buyer Rep, he outlined the 10 most common misconceptions.
Myth 1–All real estate agents are the same. Of course not. But many buyers think any real estate licensee can give them the same amount of service and expertise. Look for those that have taken the time to complete advanced training and earned real estate designations.
Myth 2–The agent on the for sale sign will look out for my interests. They can assist you, but unless an additional agreement is signed for the agent to act as a dual agent, the listing agent is under contract to watch out for the seller’s interest.
Myth 3–I can find all properties for sale on my own. Not all properties are found advertised, on-line, or have a sign. Agents should know their local market and be able to quickly give a list of suitable properties to a buyer.
Myth 4–If I just wait long enough, I’ll find the perfect home. There is no such thing as a “perfect” home. Buying a home requires compromises, a big dose of reality, and an awareness of market conditions.
Myth 5–I’ll improve the odds of finding the house I want if I work with more than one agent. Find a knowledgeable agent that you are comfortable with and enter into a buyer-representation agreement with them. Your interests will then be that agent’s priority.
Myth 6–Buying a house is as simple as agreeing on a price and signing a few papers. If only it were that simple. What happens to negotiations beyond the price and what about loan approvals, appraisal, title search, home inspection, etc. Moving the transaction successfully from contract to closing takes a lot of effort.
Myth 7–Foreclosures offer the best deal. That may be the general assumption, but some are over-priced and a lot of them have undesirable conditions attached to them. When it comes to foreclosures, what you see is what you get and what you don’t see is also what you get.
Myth 8–Getting a mortgage should be quick and easy. Many first time buyers are offended by the whole lending process and don’t understand that lenders need to take important precautions before extending credit and that means asking a lot of personal/financial questions.
Myth 9–All mortgages are essentially the same. There are many different types of mortgages: Fixed rate – 15 year, 30 year, etc.; adjustable rate – 1 year, 3 year, 5 year, etc.; balloon payments; assisted mortgages; conventional, FHA, VA, and on and on.
Myth 10–If something appears on the inspection report, the seller has to fix it. This is false. Generally, the buyer can ask for “some” repairs and the seller can say yes, no, or negotiate. Likewise, the buyer can negotiate over the repairs. But the bottom line is the seller does not have to fix it. However, the buyer could null and void the contract based on the results of the inspection.
Should you have any questions, feel free to call me at 304-822-4350.
Until Next Time
Sandra Hunt, Broker
ABR, ABRM, AHWD, CRS, GRI, SFR, SRES
