The classic myths we learned about as children are mostly harmless. As grownups, however, widely held but false beliefs -- especially when they pertain to financial dealings -- can be downright dangerous. I thought that today, with the start of a brand new year, we’d do some myth busting.
1. Hey, it’s a buyer’s market – I’m going to drastically lowball the seller.
Sure, in a buyer’s market – when there are lots of homes for sale and few buyers in the market – the buyer is in the driver’s seat. That doesn’t mean, however, that he or she can break the speed limit, careen through red lights and run over folks.
Basically, that is how you’re behaving when you make an absurdly low offer on a well-priced home. You run the risk of insulting the seller and losing the home.
Even if the seller does counter the offer, you’ve alienated him and any additional concessions, such as for repairs or extensions of time limits, will most likely be met with hostility.
Granted, this may be a business transaction for you, but homeowners often have a lot of emotion wrapped up in their homes. Trampling their feelings, insulting their tastes, won’t get you very far.
2. I’m going to wait until the market hits rock bottom to buy a house
Trying to time the real estate market is akin to trying to guess what the dealer in a Vegas Black Jack game is holding in her hand. Yet, I hear this from so many of my clients.
Even the experts can’t predict, with accuracy, when a real estate market will hit its peak or its lowest point so why average consumers think they can is a mystery. The truth is, the only way you will know that a market has hit its lowest level it when it begins to rise. By then, you’ve missed the bottom.
3. I can’t buy a house if my credit is less-than-perfect
We can probably blame the media for this misconception. Since the recession, the Negative Nellies in the media have been harping on the “tight” mortgage lending requirements that went into effect. While that was true, it isn’t any longer yet they’ve neglected to keep the public up to date.
Several government lending programs, such as FHA, VA and USDA have low FICO score requirements and many conventional lenders are loosening their standards. In fact, we work with several lenders with some pretty amazing bad credit mortgage programs with reasonable interest rates. Contact us to learn more.
If 2015 is the year you plan on moving, keep in mind that what you hear from friends, family and, yes, even the media, may be the perpetuation of some ancient real estate myths. Call us – we’ll help you bust them.
"Fairy King and Queen 1910" by Unknown - Licensed under Public Domain via Wikimedia Commons