I came across this article from the Orlando (Florida) Regional REALTOR® Association and quickly realized that many people here in Southern Arizona may have the same misconceptions/assumptions about real estate transactions. Here are the six:
Home buyers and sellers may have false assumptions about the real estate transaction process, believing in myths that could rob them of a purchase opportunity or keep them from selling for more money. Leaders of the Orlando Regional REALTOR® Association culled the top myths consumers fall for.
1. The longer a home has been on the market, the more negotiable the deal is. There are many reasons a property may be on the market for a long time that have nothing to do with price or condition. You shouldn’t automatically assume time on market indicates the sellers are more willing to haggle over the price.
2. An open house must be part of the marketing plan for a home. Open houses actually aren’t terribly effective when looking for potential buyers. In reality, only 7 percent of buyers find the home they buy through an open house, according to a 2017 survey by the National Association of REALTORS®.
3. A 30-year fixed-rate mortgage is the best form of financing. Every buyer’s situation is different, and not everyone will benefit from a 30-year fixed-rate mortgage. “If you don’t plan on staying in your home for 30 years, you need to evaluate other options, like a 7-year fixed-rate,” ORRA says.
4. Overpricing your house leaves room for negotiation. While negotiations are a part of most real estate transactions, if you price your home too high, you run the risk of not getting buyers to the table at all.
5. Online evaluations can give you an idea of home value. Automated valuation models (AVMs) don’t take every factor into consideration when determining the value of a property. Environmental hazards, recent nearby sales, and renovations, for example, aren’t calculated into AVMs, but they can certainly affect the home’s price. “The best way to check your house’s value is to ask a real estate professional,” ORRA notes.
6. You have to put 20 percent down on a home purchase. While you can save money on financing costs by bringing a higher amount to the table, it’s not necessary to buy a home. Conforming loans may enable you to buy a home with as little as 3 percent down.
I don't want you to be on the short end of a purchase opportunity or keep you from selling for more money. When you are ready to buy or sell please call or email me and we can talk about how these six assumptions apply or don't apply to your situation and possible real estate transaction.