Most people understand that the real estate market is a great place to invest. Over time, if it’s managed properly, just about every property makes money. This is especially true in hot vacation destinations like Lake Havasu. Many think they know more about real estate than they do. Here are some common myths that have been spread about the industry.
- Sellers should price property high to create negotiating room – This is a good idea if you feel prospective buyers are going to haggle with you. Sometimes, pricing it too high will make it uninteresting and it will stay on the market too long.
- You must have an open house – This is definitely a myth. The National Association of Realtors estimates that only 2% of homes sales come as a result of an open house. The best way to sell a home is to have a good agent that is focused on finding the right buyers.
- Your agent will tell you all about the neighborhood – It is actually illegal for a real estate agent to reveal any information about a neighborhood’s school quality or crime rate. This is information you are going to want. An agent can only tell you where to find the information. They can’t actually give it to you. If they do, they are breaking Federal Fair Housing Laws.
- A longer mortgage is better – Many buyers are under the impression that a longer mortgage is ideal. It does usually result in lower mortgage payments, but the homeowner will pay more in interest. For instance, a 30-year fixed mortgage is usually considered to be the best option. This is true if you plan on living in the house for 3 decades. Those who plan on moving sooner should consider a shorter mortgage. It saves thousands in interest.
- Agents can only work with their company’s listings – This is definitely untrue. An agent can access listings from any company in their area.
- A 20% downpayment is mandatory – While having a big downpayment is ideal, it is simply not something everyone can afford. Your agent can help you buy a house if a 20% downpayment isn’t doable.
- Always go with the lowest mortgage rate – It is more important to choose a lender with a good reputation than someone offering the best prices. There may even be other hidden fees that you don’t realize.
- It is cheaper to sell your home without an agent – Selling yourself can save you a little bit on commission. It also makes it much harder to get the property listed. Buyers may expect you to haggle on price since you aren’t paying commissions.
If you are going into the home buying process for the first time, it is important to educate yourself. Many people have been burned in a real estate deal because they believed in one of these myths. The most important thing is to hire a reputable agent. Contact one of our agents today at Lake Havasu City Properties , they will have access to all listings and will get you the best deal whether you are buying or selling your home.