If you’re considering selling your property, you’ve probably heard all sorts of things from your friends, family and co-workers. Some may be true. Others are definitely not.
Before you get too worried, take note of these common real estate myths.
Myth #1: You need to spend money to make money.
We’ve all seen it, and many of us have done it. We want to get the best price for our property, so we start doing all the things we always dreamed of doing… renovating the kitchen, updating the bathroom, etc. Some improvements can make your property more attractive and may boost the asking price a bit, but that doesn’t mean you’ll make back the money you’ve spent. Plus major renovations almost always cost more than expected, so stick to small improvements like a fresh coat of paint or some new fixtures. Leave the major renovations — and the potential headache — to the new owners.
Myth #2: You need to wait for the right season to sell your property.
Photo by Josh Wray for Visit Mammoth
You’ve probably heard that it’s easier or you’ll make more money if you sell your Mammoth Lakes home in a certain season. I’ve been helping buyers and sellers in Mammoth Lakes since 2011, and I’ve seen that there is no “selling season.” We’re a year-round resort that draws buyers in all the seasons. Don’t wait around — get your property on the market as soon as you want to sell it.
Myth #3: Pass on the first offer and wait for something better.
When your first offer comes in, especially if it’s below the asking price, many sellers pass in hopes of getting a better offer later. If your property stays on the market for a month or two, buyers will be wary, especially since properties move so fast in Mammoth Lakes. Take every offer seriously, and don’t assume a better offer will come the longer you wait.
Myth #4: You can move your home with an open house.
An open house sounds like a dream solution, right? Buyers will flood in the door eager to see and then buy your property. Unfortunately that’s not the reality I usually see. Open houses attract window shoppers who may already own a similar property or be dreaming of a someday-purchase. With one-on-one sales, your real estate agent can weed out anyone without a pre-approval letter. Don’t waste your time trying to sell to someone who can’t get a mortgage. One-on-one sales also give more time for the agent to share what’s great about your property with the potential buyer.
Learn more in my Ultimate Home Seller’s Guide. If you’d like to talk, call me at (760) 914-4664.
If you are a first-time home buyer, friends and family members may be quick to give advice about the home-purchasing process. As a result, there could be several home buying myths that may have found refuge in the back of your mind. Unfortunately, that friendly advice can help perpetuate some of the most common home buying myths — especially when it comes to credit.
Myth No. 1: You need perfect credit to purchase a home.
Fact: It is true that an individual’s credit score has an impact on the mortgage loan approval process and ultimately the resulting interest rate. However, perfect credit is not needed to secure approval for a mortgage loan. While credit scores can range widely, the higher your credit score, the more options you will have to find a mortgage with favorable interest rates.
Myth No. 2: Lenders have free rein in sharing your personal credit information.
Fact: Not so. For a lender to share your information with an affiliate (any entity that is involved in making, holding or investing in bank loans or credit extensions), generally you must first give your permission. State and federal privacy laws are in place to help protect your personal information.
Myth No. 3: Lenders only use one scoring model that determines creditworthiness.
Fact: There are a number of credit-scoring models used to determine credit risk in today’s marketplace. For example, many lenders use the VantageScore® as one model for determining credit worthiness. While scoring models vary, many of the same factors influence your credit score, including your payment history and your level of debt.
Get pre-approved: Before you start hunting for a house, determine what you can comfortably afford to pay each month. Even if you are pre-approved for a mortgage, consider if the mortgage is affordable. Preapproval allows you to determine how much home you can shop for and afford. It may also give you an advantage when it comes time to negotiate your home mortgage. Understanding the factors that are important to a mortgage lender can improve your chances of finding your dream home.
Source: Becky Frost, AOL Real Estate Blog
There tends to be some common misconceptions in the home buying process. These are some of the top myths.
Myth #1: You don’t need a REALTOR®.
Before you take on one of the biggest purchases or sales of your life, remember this: it’s not as easy as it looks. REALTORS® know all the ins and outs of the local area as well as the market in which you’re looking to buy or sell. Working with a REALTOR® may be one of the best decisions you’ll make.
Myth #2: Appraisers set the value of a home.
The role of the appraiser is to produce a credible opinion of value that reflects the current market. Appraisers are not responsible for setting the value of the home and they also do not confirm a home’s sale price. According to David S. Bunton, President of The Appraisal Foundation, “Appraisers provide an analysis of the collateral, so that lenders understand the value of a property when making the loan decision.”
Myth #3: You need perfect credit.
Most people assume that you must have absolutely golden credit in order to get a loan, but that just simply isn’t the case. If buyers have less than perfect credit, lenders are often willing to work with them to get the best possible loan. Credit is not the only thing that lenders look at when deciding to approve a loan, but your score will have an effect on the interest rate on your mortgage. Make sure you review your credit report and if any errors are found, they should be reported to the credit reporting bureaus before applying for a mortgage.
Source: The Real Estate Book