With real estate prices, trends and laws constantly in the news, there is a lot of misinformation floating around. Real estate myths spread like wildfire and not doing your proper homework could cost you. Here are six real estate myths to clear up.
Selling a Home Yourself Saves You Money
Some people might think that they can save money by selling a home themselves and saving on a real estate agent’s commission. As shown in another blog post, this is not the case. Sellers who use a real estate agent almost always make more money than those who try to go it alone. Even after paying a real estate agent’s commision, you are still more likely to walk away with more money.
When Selling, You Don’t need to Stage Your Home
You may think it’s enough to clear out the clutter in your home and do the dishes, this just isn’t the case. Staging your home is a necessity. Take down personal photos, paint the walls neutral tones, and deep clean the entire home before putting it on the market.
You Need to Major Renovations to Sell Your Home
With that being said, you don’t have to complete major renovations before you sell. While some “experts” may suggest remodeling the kitchen and bathrooms before a sell, this isn’t a one size fits all fix. Instead, you should do any minor repairs to make your home in top shape. Talk to your real estate agent about what renovations will be necessary to get the best deal.
When You Buy, You Only Need the Down Payment
While buying a home, you have to think of more than your down payment. Closing costs and fees will also need to be taken care of. Talk to your bank and your real estate agent to make sure you find a house you can really afford.
You Need a 20% Down Payment
While a 20% down payment is the suggested goal, it isn’t completely necessary. Banks may offer loans with a 5%, or even 3% down payment. The more you pay upfront the better, but talk to your bank and get pre-qualified for a loan. They will help you determine how much you will need to pay for a down payment.
You Need Perfect Credit to Qualify for a Home Loan
Loosening bank regulations and an improving market are making it easier to qualify for a loan. While you will get a better interest rate with a higher credit score, you don’t need to wait to have perfect credit to buy a home. Take care of your finances as well as you can and then go talk to your bank about what kind of home loan and interest rate you can qualify for.
Don’t make any mistakes during your real estate transaction by believing these myths. Talk to your St. George real estate agent to get the best deal out of your home sale.