5 Incredible Home Buyers Myths Debunked

Buying a home in today’s market is different from when our parents bought their homes. What was true once upon a time may not be the case today. Whether you are buying your first home or jumping back into the market after many years, it is very easy to fall for some common home buying myths. Get ready to be shocked as I crack some myths that I find are popular with today’s buyers. 

Myth #1. The highest offer wins or you pay above value

If you are buying a home in today’s market, you may have heard the dreadful words “bidding war”. I am not a fan of this phrase as it’s just a sales tactic by realtors but unfortunately instills fear in a lot of today’s buyers. There are many ways to sweeten your offer with perks such as your willingness to be flexible on closing dates; if you have no conditions; have a higher deposit; or bring a deposit cheque in hand. You may even want to ask if the seller will review pre-emptive offers, prior to the offer date (AKA bully offer). Tip: By starting low on your initial offer, you may hurt your chances of competing with the rest. 

Myth #2. You don’t need to hire a real estate agent. 

Both home buyers and sellers often hear that they can save a lot of money by not hiring a real estate agent and do it on their own. Commission in most cases is paid by the sellers, so it’s FREE for buyers. Real estate agents are trained to understand the current market conditions; negotiate the best possible deal; and help you avoid costly mistakes. 

Myth #3. You have to put 20 percent down

The amount of your down payment will determine whether you’ll have a conventional mortgage or a high-ratio mortgage, which must be insured by a mortgage insurer. As of February 15, 2016, the minimum down payment for new mortgages have been modified. Here is the breakdown: Homes $500,000 and less is 5%; homes $500,000 and less than one million is 5% of the first $500,000 plus 10% of the remaining balance; and Homes one million or more is 20%. 

Myth #4. The national news describes your local market
When watching the news it continues to depict the buying process as a scary time especially for first time home buyers. This fear can consume home buyers making it difficult for them to make the decision to go forward. If you are financially and mentally prepared to buy a home then buy and don’t wait to buy.

Myth #5. Home inspections are a waste of money.
A home inspection is an inexpensive way to discover the overall condition of the home. It is important to conduct a home inspection to avoid purchasing a property in need of major repairs which would be a costly mistake.  

Here is a neat survey that you can try to learn more about being a buyer and/or seller, http://recofactfiction.ca.