There’s no shortage of misconceptions about real estate, which make many people reluctant to get into buying or selling homes. This is a shame, because those misconceptions are just that: misconceptions. Here is a list of some of the top misconceptions about real estate, based on an article on the site Zillow:
You don’t need a real estate agent to buy a home in the information age: Even when you can find most things online, it’s now more important than ever to have a great local real estate agent. While the reason for using an agent isn’t as much focused on their access to proprietary data, they’re great to have on your team as advisors, since they have a lot of experience in something that you ultimately don’t experience yourself that often.
You need 20 percent down to buy a home: This is the biggest misconception for millennials, many of whom are burdened with student loans but still want to be homeowners. Lenders tended to be strict after the credit housing crisis, and financing spelled the end of mortgage deal after mortgage deal. Yet today, you can get a loan with as little as three percent down, although it isn’t that simple; you still need to have great credit, verifiable income and assets that can back you up.
My home’s value is whatever the appraiser says it is: The market value of a home is determined by what willing buyers and sellers agree upon in an open market. Yet other than that, a homeowner or would-be seller can only rely on a recent appraisal for a bank refinance. Typically, a home’s appraised value comes in below the market value, and such factors as views, finishes, fixtures or neighborhood specifications can all affect an appraisal.
You don’t need to have open houses to sell homes: While the advent of online listings might make open houses look unnecessary, that’s not always true. Open houses are the blood of DNA real estate, and you’ll have a better chance of selling your home if you make it more available to potential buyers.