As the housing continues to be red-hot, it can become confusing to navigate as a potential home buyer or seller. Check out a few myths and misconceptions about the current market below.
Waiting Until Home Prices & Mortgage Rates Fall To Buy
This is probably the most common misconception for buyers in the current market. As the mortgage rates started rising, buyers think that the best method to get a home is to simply wait it out when they decrease again. However, real estate experts across the board have predicted that home prices will continue to rise despite that the mortgage rates will be also rising for the next year. The longer you wait, the more you’ll be looking at needing to spend to get into a home.
Waiving A Home Inspection
In a climate where most properties are seeing multiple offers on the table, some buyers think that waiving a home inspection is a good way to make their offer stand apart from their competition. Why this may be true, it’s not in your best interest as a buyer. Home inspections are key in determining the actual condition of the home and preventing any surprises. Waiving a home inspection could cost you big time if you find damages or out-of-code items in the home, so it’s best to keep that condition in your offers.
Setting Any Asking Price Is Fine
There’s no denying it’s a sellers’ market right now. Most properties see multiple offers above the asking price in just a matter of a couple of days. However, this does not mean as a seller you can just set any price you want and expect that it will be met. Overpricing your home from the get-go could turn away buyers and lower your overall buyer pool. Having a bigger buyer pool is ideal when you want to get the most of offers on your home.
Needing To Renovate To Sell
Despite that housing inventory remains low and buyers’ competitiveness is increasing, there are still sellers who are hesitating to put their property on the market because they believe they need to have a renovated home to sell it. It’s important to consult with an expert or partner with a real estate agent to discuss any renovations or big home projects before you dive in. Some renovations may seem like they’ll give you good ROI at first glance but doing them without research first can backfire. In some markets, you may not need to renovate at all to get top dollar for your home!
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