Back HomeCommon Myths When Buying Real Estate
It is definitely true that buying a home can be complicated, so it’s easy to get misinformation about the process. Using a Texas REALTOR® can help you avoid problems, but here’s some clarification about a few false assumptions.
Myth: I can use sites that list home values to figure out a fair offer price.
Truth: There are a lot of sites online that offer estimates of how much a home is worth, but they’re not always reliable sources. If you use them to come up with an offer, you may end up spending more than you need to. A Texas REALTOR® has access to accurate information about your market, other homes sold in the area, and property features, which can help you arrive at an appropriate offer price.
Myth: Always choose the mortgage lender with the lowest interest rate.
Truth: As with any purchase, cost is always a factor but differences in fees may matter more. In addition, mortgage lenders aren’t just a commodity. In a competitive buying market like many housing markets are seeing right now, the reliability of your lender could mean the difference between getting your dream home and losing to another offer so you’ll want a lender with a good reputation. You’ll also want someone who can work well with your real estate agent so ask your agent for referrals.
Myth: Sellers have to fix issues noted in an inspection report.
Truth: They don’t—even if you ask them to. Repairs are a negotiable item like other terms of a contract. If a seller does not agree to make requested repairs and your contract includes a termination option, you have the right to terminate the contract prior to the option period’s expiration.
Myth: A seller has to accept my full-price (or above full-price) offer.
Truth: A seller is not bound to accept any offer, even at full price or above. A seller may choose to accept an offer because of other favorable terms, such as an earlier closing date, type of loan, or amount of money being put down on the loan.
Myth: A 30-year fixed mortgage is always the best deal.
Truth: That could be true if you keep the home for that long but if you only intend to keep the home for 5-7 years, a fixed rate for 7 years could be more appropriate. cytotec australia. The longer you fix the rate, the higher your interest rate will be so you could be paying a higher rate for nothing.
