There are many real estate myths out there and we thought it would be fun to share a few with you here.
Set your home price higher than what you expect to get.
Listing your home at too high a price may actually net you a lower price. That’s because shoppers and their real estate agents often don’t even look at homes that are priced above market value. It’s true you can always lower the price if the house doesn’t garner any offers in the first few weeks. But that comes with its own set of problems as buyers will be suspicious of houses that have sat on the market for a longer period of time.
You can get a better deal as a buyer if you don't use a real estate agent.
This is completely false. If the house is listed with a real estate agent, the total sales commission is built into the price. If the buyers don’t have an agent, the seller’s agent will receive the entire commission.
You can't buy with bad credit.
If you’re looking to get a conventional loan, having bad credit might give you a full stop. But FHA loans require only a 3.5% down payment and borrowers with low credit scores—even under 600—can qualify. Keep in mind, though, that FHA loans may look great at first, but they definitely aren’t for everyone.
The only up-front cost is a down payment.
In your dreams! For one thing, the seller might determine you’re responsible for closing costs, which can be anywhere from 3% to 6% of the purchase price—and those costs can change drastically depending on your state. And don’t forget the slew of fees, taxes, and other costs for inspections, credit reports, insurance, among others.
Hometown Realty in Hutchinson, MN is the top choice for both buyers and sellers in the Hutchinson, MN real estate market. Whether you are considering buying or selling a home, contact the professional realtors at Hometown Realty for all of your real estate needs.