There are several home buying myths you may have heard of that can complicate your perception of buying a home. Not to worry, we’ve busted some of the more common real estate myths to help provide you with some piece of mind during the house buying process.
1. Myth: Spring is the Best Time to Sell Your Home
While spring may be a popular time to put your home on the market, it may not always be the best time. Some determining factors to consider are the economy and mortgage interests as well as what personal timing works best for you.
2. Myth: Buying is Better Than Renting
Ah, the old buying vs. renting debate. While there are certain benefits to both buying and renting a home, it all comes down to your own personal situation. For instance, if you are only planning to be in a home for a year or so, renting might be better to avoid any type of long-term commitment. If you have enough money saved up for a down payment and are looking to invest in a property, buying may be better. Ultimately, determine what’s best for you.
3. Myth: You can Skip the Inspection
To avoid costly repairs and stress, a home inspection is a must. Even if it’s your dream home, it’s important to still get an inspection done. There could be a number of issues with the house that you aren’t aware of that could lead to heavy expenses down the road. A home inspection can also address safety concerns such as carbon monoxide and mould, which can help determine whether a home is safe to live in.
4. Myth: If you put a Higher Price on your Home it Leaves More Room for Negotiating
Pricing your home way above market value may limit your selling chances. You could miss out on many potential homebuyers who have a set budget in mind. Price is one of the most important factors when it comes to buying a home. If you are unsure how to price your home, you can do some research online or discuss the industry with a realtor.
5. Myth: The Purchase Price is the Only Thing You Need to Budget For
It’s important to make sure you have a proper budget including a home inspection, property taxes, mortgage payments, closing costs, enough funds for monthly household expenses and more. It’s also wise to save a portion of your budget for any routine maintenance or future renovations that need to be done.
6. Myth: You Can’t Buy a Home Without a High Credit Score
While a credit score is an indicator of your finances, you don’t necessarily need a high credit score to buy a home. Though, it will help in your favour of qualifying for a better mortgage rate, since those with high credit scores are considered to be lower risk. There may be loans available for buyers with less than average credit scores that you can potentially qualify for or you can consider saving for a larger down payment to help improve your finances.