In deciding of buying or purchasing a new home for your family is indeed a huge decision to make. But there are things that are commonly misconception by the buyers. There are 5 MOST COMMON MISCONCEPTIONS of a home buyer.
- Home Buying is Easy as 123
This is definitely wrong, buying a home will go through a various process such as listed below
- Finding a Perfect home for your family
- Request for a pre-approval ( if mortgage ) or provide a proof of funds
- Buyers will get a Real Estate Agent
- Present an offer to the seller and make various counter offers if needed
- When, signed by both parties , the transaction will now enter in Escrow
- All documents will be examined and various inspection in the property will be conducted.
- Starting with a Low Purchase Offer
This concept is sometimes mistaken; this may lead to misunderstanding between a buyer and a seller. You can avoid this if you’re going to make and conduct some research first regarding the value of the property that you want to purchase before writing an offer to the seller. There are factors that you need to consider in doing your research such as locations, neighborhood, transportation and establishments that are near to the property.
- Real Estate Agent is not necessary in Home Buying process
Buyer thinks usually that they don’t need to find a Real Estate Agent when buying a property because on the top of their mind, getting a Real Estate Agent will add expenses on their end. This thinking is incorrect. Real Estate Agent plays a vital role in Home buying transactions. They protect your rights as you being a buyer. They give you options and suggestions on what to buy and what are the factors you need to know in owning a property. They assure that the contract or offer that you’re going to present to the seller is basically in favor with you. Real Estate Agent also prepares all the documents you need as well as following up the Seller regarding the status of your offer.
- High Credit Score
Another misconception of the buyer is that the people who can purchase a property are those who have excellent credit score. It is , somehow, but applying for a loan can be done also by people who have low credit score. It’s just that their monthly mortgage will be different when you have a low credit score.
- Future Home Value
Buyers may think that the value or the Real Estate appraisal of their home will definitely increase as time goes by. Yes, this may happens but it will depend on the current standing or appearance of your home. There are factors that need to consider before we can confirm that your Home Value will increase after several years. These are the status of the house, whether it is newly renovated or painted, the location, the neighborhood, the transportation and other factors that may arise, as time passes.