Myth vs. Fact: Buying and Selling Real Estate

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1. "The perfect time to buy or sell a home is in the Spring/Summer."

Myth:

Although Spring and Summer have their benefits for buying a home or selling a home, Winter also has it's perks. For one thing there are less competitors bidding on the same home. In this kind of a market with low inventory, that is huge. As you may know, if there are multiple offers on a home, that will most certainly drive up the  price. Because it is a typically a slower productivity period, agents will have more time to spend with you to ensure you get the best deal on your optimal property. Also, not only are agents more available, but so are the banks with their loan turn-around time. If the banks are less busy, your waiting time for loan approval and processing could be far shorter than what it usually takes.

2. "I have to update and make improvements on my home in order to get it sold at a good price."

Myth:

Not only is it not a good idea to put a lot of money into fixing your home up for selling purposes, but you may end up losing that return on your investment all together when you go to sell your home. The time and money that it takes you to fix up your home before selling is typically not worth the hassle and will probably put you behind the eight ball. Home buyers will usually want to put their own unique stamp on their new home, not pay for someone else's upgrades. So, putting $30,000 into fixes and upgrades will not necessarily get you more for your home. In most cases, you will usually not even break even on the investment of time and money. Conversely, buyers do want to see a bit of a clean slate. So doing the minimal, like painting and light patching, will be enough to get you what your home is worth.

3. "If I have a short-sale on my credit, I only have to wait 2 years to buy another home."

Fact:

Good news, if you have had a short-sale over 2 years prior, you can be eligible to buy a home again now. That is the time period that the banks require you to wait until they will lend you the money to make another home purchase. Although, if you are lucky to have the full amount of the home in cash, you can buy the day your short sale is final.

4. "I need 3% to put down on a home."

Fact:

The majority of standard loans only require you to have 3% of the purchase price to put down on a home. If you qualify for a VA loan, your down payment requirement will be 0%.

5. "I can't afford a home in my price range."

Myth:

This is one of the most common misconceptions that people have when thinking of purchasing their own home. When you consider how much you're paying in rent monthly, in most cases, you should be paying that for a mortgage instead of to a landlord. Sitting down with a Real Estate agent will help you to sort out properties that you may be able to afford in some of the areas that you'd like to live. We pay some of the highest rents in the United States right here in Southern California. For the price of some rentals, buying could even be a more affordable option for you.

6. "My credit scores are not good enough to qualify for a home loan."

Myth:

The fear of the unknown is what keeps people from investigating their options. In fact, there are banks that will lend to you with a score of 560 or better. Sitting down with a mortgage broker is your best way to find out if you can get qualified.