The Buyer's Guide: Common Misconceptions When Buying
/When it comes to buying a house, there is a lot of information to take in as you go through the process. It can often feel overwhelming, so make sure you always rely on your Realtor to share all of the relevant details with you. Beyond this, there are still some misconceptions that buyer’s have that could ultimately defer them from taking the leap on finding their dream pad. See below as we de-bunk the top common assumptions that buyer’s have when purchasing.
1. Assuming you need a 20% down payment
If you’ve been waiting to save 20% for a down payment (especially in the La Jolla market), you may be missing out. About 60% of home buyers actually put down less than 6% on their home purchases. If you have a strong stream of steady cash flow, but not enough saved up, this could be a good option for you.
Photo by Glenn Carstens-Peters on Unsplash
2. Refusing to look at homes that don’t meet 100% of your needs
A list of everything that a buyer wants in a home is a great starting off point, but compromising is likely for some key features. To organize your wants vs. needs, consider documenting this out in my Love List Tracker which will help you prioritize your top desires.
3. Judging a home on price only
You may find an appealing home that’s way under budget. But if the home is in need of major TLC, you’ll need to factor in the fix-up costs to determine whether it’s still a great deal. Also, factor in the time and resources that are required to do the renovation.
4. An online home value estimator is always accurate
Several real estate sites offer a home value estimator to see what a home is worth, and it is a great way to get things started, but consider this a ballpark on value, as it doesn’t have all the facts. After a full preview of the home, your Realtor will provide the most accurate estimate, taking into consideration the specifics (as no two homes are the same) and the current market.
5. Fixating on a few grand
If you and the seller are only a couple of thousand dollars apart on the sales price of the home, you may want to consider the bigger picture. Is it worth it to lose a home over a few thousand dollars that could merely add only a few dollars to a monthly mortgage payment? Also, with interest rates currently on the rise, waiting it out could result in the increase regardless.
Source: CAR
