Between the media and your friends’ gossip, it’s hard to know what real estate information you can trust. Well, for starters, here are five popular real estate myths, busted.
1. Renting a home is cheaper than buying. It used to be true that renting was cheaper than buying a home, but for the most part, the recent housing recession has changed this. During the recession, the rental market was seized by an influx of previous homeowners, which inflated the rental market. A higher demand grew for rental properties because of the inability to own a home, so prices in the rental market rose as well. According to the real estate site, Trulia, the cost of renting is now as much as, or more than, the cost of buying.
2. You need to own a home. With the American glorification and status associated with home ownership, it is easy to be swept away with the idea that you need to own a home. However, there are many factors to take into account when considering buying a home. For instance, are you going to be in this home for less than 5 years? If so, you might want to consider renting instead of buying. That way, when it is time to move, you won’t be stuck trying to sell a house. If you are still fairly mobile and immature in your finances, renting may be the better option.
3. Greedy greedy sellers. Your home (once you own it) is probably going to be your biggest financial asset; the same is true for these sellers. Additionally, a lot of work goes into restoring, updating, and owning a home, so this time, effort, and money is taken into account by the sellers when they publish an asking price. Moreover, many sellers still have mortgages to pay off at the time of the sale. Of course, some sellers have an unrealistic idea of their home’s worth, but many of them are simply considering their investments in the property, and therefore unwilling to settle for too low of a price.
4. Cheap cheap buyers. Especially today, people are trying to get the most for their money; this goes for buyers and sellers. However, even in the slow housing market of today, many buyers are willing to pay more than the asking price of a home. Buyers will do this for many reasons, the big ones being security, not having to compete with other buyers, and ease, not having to deal with the seller’s bank. Additionally, if the buyer comes across a home that is in great condition in a great area with multiple attractions, chances are they will buy.
5. Name your own price. Because the housing market is in a bit of a slump, the media claims that buyers can name their own price, and this is simply not true. The seller doesn’t want to be shorted anymore than they buyer wants to pay too much. It is all about compromise and understanding the market. By working with a real estate agent, a seller and a buyer can learn what it takes to make a sale, and it is not selfishness, it is understanding.
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