5 Myths Of Residential Real Estate

With so much information available about residential real estate, I’m surprised that I keep hearing some of the same misinformation over and again. Today I wanted to share the top 5 myths about residential real estate.

Myth #1

I need 20% down to buy a home. I’m always surprised to hear people still think they have to have 20% down to buy. Today, there are home loan programs available from zero down. Most FHA loans require only three and a half percent, and conventional loans as little as three or five percent.. 20% down is great if you can do it, but if you can’t, that does not mean you can’t buy a home right now.

Myth #2

I’ll never qualify to buy a home. The question is: how do you know? People are often shocked that they can qualify to buy a home NOW. You don’t need to have over 800 as your credit score to qualify for a home mortgage. Waiting only increases the cost of homeownership. You can get clarity about your ability to buy by speaking with a good lender who can help find the best program for you. If you can’t qualify, they can help you create a plan to do so in the shortest possible time. My number one reason for suggesting people to talk to a lender is to actually find out what you can qualify for; sometimes it’s more than you think. I’m happy to make a recommendation to a few good lenders if you need it.

Myth #3

Sellers often believe – “I need to price my house with enough room to negotiate.” This belief can cost sellers money. A new home on the market gets the most activity in the first 30 days. But if the home is overpriced, it will sit. The longer it sits, the less money sellers make. A good agent knows how to price a home, stage it, and aggressively market it to help you get top dollar in the shortest time possible and negotiate on your behalf to get that price.

Myth #4

The less commission I pay, the more I’ll make. The truth is, agents who excel in this business don’t discount services because they do not have to. We know how to price your home, aggressively market it, which will net sellers more money. It all boils down to you get what you pay for.

Myth #5

All agents are the same. This could not be further from the truth. Like in every profession or organization, there are those who are committed to excellence and devote their time and energy to being highly skilled professionals. Others simply do the minimum to get by. Working with a full-time agent with an extensive marketing plan and strong negotiating skills will ultimately put more money in your pocket in less time.

Want To Know More?

As always, feel free to reach out to me for anything community or real estate related. Call me today at 808-489-2541, and I’d be happy to answer all questions you might have. Don’t forget to stay connected with me on social media (Facebook, Instagram, YouTube) for the latest updates and information on Oahu Real Estate.