3 Big Myths About Home Buying

Posted in Buyer Blog | 17/10/2012

Windsor Property For Sale

Windsor Property For Sale

There are plenty of misconceptions out there when it comes to buying a home.  Many buyers are under the impression that they can get homes for a steal, don’t need real estate agents to get a good deal and because of the last several years, buying real estate is a lousy investment.  Let’s take these step by step.

1.  You Must Make A Low Offer On A Home:

There are circumstances of course where it is a good idea to make a low offer on a home; however, this doesn’t work with every seller.  Many homes are priced at exactly where they should be priced.  Before submitting an offer, a real estate agent should give you a full comparative market analysis of the home to determine what a fair price is.  If a home is priced right, in prime condition and has only just come on the market, then lowball offers will most likely be dismissed.  If the home is still on the market six months later, then that lowball figure may look more attractive. This is why I often tell buyers to make their first offer, their best offer.  Each seller is unique, with different circumstances. You never know what you get until you make that first offer, but be warned,  sellers are no longer taking every low bid offer.  Many will refuse to negotiate if they receive an offer that is insulting.  Work with your real estate agent to determine the best price for you.

2.  I Don’t Need A Real Estate Agent:

In all fairness, using a professional real estate agent, particularly if you are a first time home buyer, can save you not only time and effort, but money as well.  Hiring an agent that is well-respected and knows the business inside and out, means that you don’t need to know everything or much at all about the home buying experience.  As Henry Ford, our neighbour from Detroit, once said, “When you hire people who are smarter than you are, it proves you are smarter than they are.”  Agents can not only take the “spam” out, but show homes that are within your price range, while knowing and understanding the neighbourhood, and offering price guidance and negotiation skills with your best interests in mind.  Let me emphasize that a professional real estate agent always has YOU in mind and NOT the real estate agent’s best interests.  Not only that, but real estate contracts are massive.  Make one simple mistake, and it could cost you more money than what you tried to save if you were handling it alone.  Chances are, you don’t handle your retirement accounts by yourself, and you often rely on professionals to assist you with home repairs or medical work.  So why would you try to handle one of the biggest investments you may make, on your own?

3.  Real Estate Is A Lousy Investment:

It’s easy to see where potential buyers would come up with this theory.  Obviously, the last several years have not been kind to many homeowners who have seen the value of their homes drop.  The bad news about the real estate market has, at times, been overwhelming.  Foreclosures and doom and gloom have been everywhere.  The truth is that buying the right home for you, at the right time for you, is always a good investment.  What does this mean?  Buyers “buy” in a buyer’s market, when prices are low and the inventory is high.  Yet real estate is cyclical and this will never change.  What we can say is that home values historically increase over time.  If you are looking to purchase a home for the long-term, this is an excellent time to buy a home, as there are opportunities everywhere.

There is something to be said about owning a home, especially now, with rates being so low and the market gaining strength.  Obviously, the benefits are enormous, not only from a business point of view, but also personal as well.  For many, it’s a dream come true.  When you pay rent every month, you pay your landlord and you must live by their rules.  But when you sell your home, the profit is for you, so each monthly mortgage payment should be viewed as paying yourself a little bit each month.

While owning a home is not always easy, as there are repairs to make or just daily maintenance, don’t let this scare you.  Talk to a real estate agent today and see if owning a home is right for you.  Certainly, it’s not for everyone, as we have learned in the past several years.  If your job is uncertain, if your financial house isn’t in order, then renting until things look better is an excellent idea.  But if you are considering buying a Windsor property for sale in the near future, but still uncertain if it’s the best time for you personally, a trusted real estate agent can help you determine if it’s in your best interests.



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