Real estate is plagued by a number of myths. These real estate myths trouble buyers and sellers alike because they make decisions based on these untrue beliefs. Check your beliefs about real estate against these common myths that people believe about the realty industry.
Myth: Perfect Credit is a Home Buying Requirement
While good credit can be helpful in receiving a better interest rate, poor credit does not mean you have to give up on buying a house. Shop around for lenders who will be willing to work with your situation. Or opt to work on ways to build up your credit score. If you have the money to purchase a home, your credit score should not keep you from making that happen.
Myth: A Mortgage Payment is the Only Expense
Many people say that paying off your mortgage is like paying rent to yourself, and they fail to consider the other expenses that come with a home. Most renters pay their rent and utilities, but the landlords cover water, ongoing repairs, and trash collection. When you own a home, you pay the mortgage, utilities, trash collection, and repairs. Set aside money to deal with these expenses even before buying your new home.
Myth: Vacation Homes Waste Money
Experienced and new homeowners often believe that a vacation home is a waste of money. However, a vacation home can be a great investment when managed like a business because tourists like to rent vacation homes on a nightly or weekly basis. If you plan accordingly, your vacation home can earn its keep. When it is not earning you money, your vacation home gives you a place to relax and spend time with family.
Myth: Homeowners Associations Do Nothing
Many gorgeous homes reside in areas where a homeowners association (HOA) oversees the community. While some might not think that an HOA will influence their life or their home, that’s not completely true. HOAs hold the homes and their occupants within their territory to certain standards. This means that you can’t always do whatever you want in your own home.
Myth: School Systems Aren’t Important if You Don’t Have Kids
Even if you don’t have kids, you want a home in a good school district. Yes, a good school district will add to the price of your home, but the house value will last. While you might be tempted to save money and live in an area with a bad school system, you will not make as much money when you try to sell in the future. Homes located in a good school system retain their worth for longer.
Myth: Sell Your Current Home Before Buying a New One
Most of the time people believe that their old home must sell before they can buy a new one. That’s just not true. In some cases, it makes sense to retain your old home and turn it into a rental property. Be sure to talk with professionals about the logistics of managing a rental property so you protect your assets and make a good return financially.
Myth: Open Houses Waste Time
A common misconception is that open houses only attract people who are looking but not buying. Today, people do a lot of legwork online, but walking through an open house can seal the deal for them. An open house also allows the realtor an opportunity to find out direct feedback from the viewers on how to make the space more sellable.
Myths will always exist, but savvy sellers and buyers know how to see through them for the truth. If you aren’t sure what resources are available to you for buying and selling, reach out to us today.