Myth: Foreclosures are all great deals.
Fact: Foreclosures receive strong pressure from banks to market and sell properties at or above market value. Economic indicators currently point to a recovering real estate market in the first quarter of 2011. Yes foreclosures can be a great deal, however to assume they are all great deals is a common myth.
Myth: My online home value from xyz.com is calculated by real market data, it has to be pretty accurate.
Fact: Many online sites do have a strong accuracy percentage however they fail to take into consideration several variables of sales such as non data available information. It is best to analyze as many sources as possible when valuing a property. Other ways to value a property include ordering a appraisal or BPO. For free BPO’s (broker pricing opinions) on a property you are thinking of marketing, contact us.
Myth: Its only a buyers market! or its only a sellers market!
Fact: While the current market condition may facilitate certain buying or selling practices. It is naive to think the market is only favorable to either buyer sellers. The truth is that there are so many more variables which go into a real estate transaction then just the current market condition that it is foolish generalize the market condition with such exclusivity as either being a buyers or sellers market.
Myth: I put X amount into upgrades, my house should now sell for X amount more than the current market value.
Fact: A home is expected to have consistent upgrades with its nearby competitors. Just because you installed granite counter tops and a new roof does not mean that you will be able to add what you spent on those repairs or improvements to your property’s price tag. The truth is that a buyer will expect a good condition roof, and upgrades with no additional value added to the property’s market value. In fact, it several circumstances it is usually recommended to make no repairs and sell the property as is in order to receive the highest total final net gain from the sale.
Myth: You need at least 20% for a down payment when buying a home.
Fact: Many programs exist which allow for down payments as low as 3%. Ask your qualified loan officer for more information on these programs.