Our team at Today’s Real Talk is dedicated to helping you learn more about real estate, and to giving you the information you need to make the best possible decisions when it comes to buying or selling property. In this article, we will be going over a few of the most common myths we hear about the real estate market and how it works.
- Myth: You should start by looking at houses. If you want to buy a new home, then you may think that the best first step is to start looking at your local real estate market to find homes for sale. According to experts, however, the better strategy is to get a preapproval letter from a mortgage lender first to ensure that you will be able to finance your purchase once you find a property you like. This will also give you an idea of what price range you can afford so you aren’t wasting time looking at homes that are too expensive.
- Myth: Buying a new home will save you money on repairs. While this idea sounds like it holds up, the unfortunate reality is that, in today’s real estate market, many new construction homes are designed to be built quickly and cheaply to maximize profits, and this hasty construction can lead to problems sooner than later. The best way to make sure you won’t have to spend too much on future home repairs is to have the property inspected for problems before you buy, even if it’s brand new.
- Myth: The only upfront cost you need to worry about is the down payment. In addition to the down payment, you should be prepared to pay for a home inspection and closing costs. Closing costs can range anywhere from 3% to 6% of the total purchase price.