Columbia SC Real Estate Myths
If the Columbia SC real estate market isn't confusing enough at times, many people have misconceptions that make it even more so. Often these myths dissuade others from entering the home buying or home selling maze. Don't believe everything you hear. Here are a few popular real estate myths.
Columbia SC Real Estate – Misconceptions
Myth: With all the information available online you don't need a real estate agent.
While there is a wealth of information on the Internet, it's probably more important than ever to use the services of a knowledgeable real estate agent. Because buying a home is one of the most important purchases you'll ever make, it just makes sense to have someone on your side to help. Remember, a good agent has probably helped scores of homebuyers. Wouldn't you agree you could use the experience and assistance?
Myth: To buy a home you need a minimum of 20% for a down payment.
This may be the most popular misconception among millennials. This myth was likely the result of the last housing and credit crisis. After that debacle, lenders tightened their credit policies and getting a mortgage without great credit and a huge down payment was difficult. Today, there are loan programs available for borrowers to qualify with as little as a 3% down payment. Despite the overall relaxation of mortgage lending requirements, borrowers must still have a good credit score and sufficient income and assets. However, having to come up with a 20% down payment is a thing of the past.
Myth: The value of my home is determined by a real estate appraiser.
This misconception is probably fueled by misunderstandings in real estate terminology. An appraiser's job is to evaluate a home –– usually for a lending institution –– and determine a market value of the property for lending purposes. The lender wants to ensure that its collateral, the home, is valued high enough to cover the loan amount and minimize the credit risk. The market value of a home is always defined as what a willing buyer will pay a willing seller in an arm's length transaction on the open real estate market.
Myth: The best time to sell a home is in the spring.
While it's true a number of homes hit the market during the spring, it's certainly not the only time to buy or sell. The truth is people buy and sell Columbia SC real estate every day. The best time to sell your home is when real estate inventory is low –– typically in the middle of winter. Similarly, it may also be among the best times to buy, since there are fewer buyers shopping for homes over the winter. Fewer buyers means that sellers who need to sell may accept the best offer.
Myth: An open house isn't all that important in selling a home.
Despite the cliche', most homes really don't sell themselves. A long-standing practice in the real estate marketplace is to conduct an open house for prospective buyers to visit and view your home. Not only can it save time and remedy the need to set up numerous showings of your home, but studies show many buyers are motivated to make serious offers on houses when other prospects are vying for the same home.
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