Real estate myths for buyers
The truth about the housing market
In todays uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers, and five held by sellers.
Buyer myth No. 1: The longer the house is on the market, the more you can negotiate.
When buyers ask, How long has this property been on the market?, they think six months means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.
Buyer myth No. 2: The sellers today are desperate.
Most arent. Always ask why the sellers are selling. Its the key to finding how motivated and anxious they are. Im being transferred to Dallas is a very different answer than Wed like to find something bigger. The first homeowner is hot to trot.
Buyer myth No. 3: You cant buy a home today with less than 20 percent down.
FHA loans require only 3.5 percent down, and you can even ask the seller to pay the closing costs.
Buyer myth No. 4: You need good credit to get a good loan.
Once again, the FHA to the rescue! Theyre happy to lend money to buyers with bad credit.
Buyer myth No. 5: You shouldn’t buy before prices have bottomed.
You cant sharpshoot the real estate market. Once you identify the bottom, prices have already moved up.
Source: Barbara Corcoran