In this article, I will share ten crazy home buying myths people still believe in today and are afraid of. On the internet and in local areas, some scary advice is floating all around, and if someone got good advice, they think twice before acting on them. The myths have become the new truth in this modern era and the reason for suffering as an average man.
Ten Super Crazy Home Buying Myths
Everybody has experienced home buying and is ready to give you free advice. And you know free advice is the most dangerous thing in this world. It can take all you have. But do not worry. You will know that all those myths are fake, and you must not trust them. Here are the top ten home buying myths that people still believe today.
Table of Contents
1. Don’t Buy a House in Fall or Winter
People believe spring is the best time of year to buy a house. But that is not always true. It all depends on supply and demand. More homes for sale means less competition, low prices, and more time to do the due diligence or inspections.
If you compete for limited housing, the price will be high, and that time will become the worst to buy a house. Before you believe in those fake home buying myths, ask yourself why the prices are high or low, then you will see the real picture.
2. You Need lots of Money to Buy a House
This myth is partially true. But it may not be for you. Mose people trust that you need at least 20 percent of the total value upfront for the down payment. But if you can negotiate the initial payment with the seller, that 20 percent can go down up to 5 percent. You have to use more effort into it. If you have that money, okay. But know that you have the option to reduce it.
3.You Can Do Whatever You Want
No, you can not. There are some rules in each neighborhood and every society, and you must follow them. In some states, there are legal zoning and permit rules that all the rehabbers must follow if they repair or redesign the house. Yes, the house is yours, and you can do many things, but my friend, not everything. You have to take permission for it.
4. Owning a House is Always a Positive Investment
All the agents say this, and it works. But if you view the house from the eyes of an investor, then you will know that the value of a house might decline depending on the market condition.
If the city is dying, people are leaving that area, businesses are closing, and the vacancy is growing, then the value of your house will decline. Yes, most of the time, it is a positive investment, but not always.
5. Your Credit Score Must be over 700
Your credit score does have an effect on the borrowing power you have. But that does not mean if you don’t not have those 700 points, you can not qualify for borrowing. Yes, it helps, but it’s not everything. Many banks are ready to give you cash with below 700 scores. It may vary in every state. Ask your agent and know how you can qualify for it without that 700 credit score.
6. Just Pay the Down Payment, and You are Done
Just paying that small down payment is not always enough. You should have some extra money in hand for a possible small repair. Expert says, to have at least $3,000 aside if you ever face any unexpected expense that needs a quick fix. If you do the due diligence properly, you don’t need that extra money, and this home buyer myth will become true.
7. Hiring an Agent is Just a Waste of Money
If you believe this myth, then you are making a huge mistake. Those professional agents have more access to properties and listings than any normal person. Plus, they have all the experience in dealing with properties from documentation to escrow. They can do all.
Never trust this myth, especially if you are a first-time home buyer. You do need a professional real estate agent to buy the best house without any fraud.
8. Home Inspection is Not Required
Now, this is one of the big home buying myths out there. A home is a big purchase, and you must not forget to have a second eye on it, despite the expense. You may find something that is broken from the inside but look good on the outside or a problem that needs repair soon.
Do the inspection, find those things, and negotiate with the seller to reduce the price. You never know what may come out of an inspection. This home buying myth is a big false.
9. Time the Housing Market before Buying it
Most people want to win the housing lottery, and some do. But most of them fail to do so and end up paying more money than they can afford. Please know you can not time the housing market, no matter how good you are at analyzing supply and demand.
If all the people could predict the market, then they would become a billionaire today, and no one will face any loss in this business. You can assume what may happen but never try to time the market.
10. Homeowners Associations will Not Affect You
The HOA or the Homeowners Associate has many strict rules in every neighborhood, and it does affect you as a home buyer. The association has good control over what you can do with your house and in your house. If you don’t like it, you are free to leave. Don’t mess with them and follow whatever they say is allowed.
So these are the top ten home buying myths that an average man believes. Do your own research and find out, what is happening with the housing market and why. Never believe in anything without a second look. Home buying is a big decision, and you should not take advice from anyone. Be safe.