Updated: Feb 8, 2020
Title: 6 Home Buying Myths | Sadyna Reino Century 21 1st American, The Desert Duo
Buying a home can be a great investment and a lot of fun, but there are common misconceptions out there that could detour you. It is a big milestone in your life and should not be taken lightly, but you should know the facts so you can make an informed decision. Here are 6 home buying myths.
1. You need 20% for a down payment- This is one of the most common myths we hear! You do not need 20% for a down payment! There are so many loan options out there with varying amounts needed as a down payment, it can definitely be worth it to explore your options. Talk to a lender to find out different options that could be right for you.
2. All you need is your down payment- Although a huge part of your upfront costs will be your down payment, there are still other costs that should be considered when buying a home. Closing costs, home inspection and property taxes are just a few of the other upfront costs associated with buying a home. Some of these can be negotiated with the other party but you should still be prepared to pay some or all of these.
3. You don’t need to work with an agent - Searching for a home can seem easy at first, with all the new websites and online tools available to home buyer. However, working with a real estate agent can have some serious advantages! When it comes time to write an offer, negotiate and make sure everyone holds up their end of the deal, you’ll want someone who understands this process on your side. Plus, it doesn't cost buyers anything to use an agent! Most of the time the seller will pay this fee.
4. The asking price can’t be negotiated- The asking price is just that, the seller asking for a buyer to pay that amount but there are instances when it can be negotiated. If you are a strong candidate in areas such as prompt closing date, pre-approval letter or your down payment in hand, the sellers may be more willing to negotiate.
5. It’s a 30 year commitment- This myth could not be further from the truth! While buying a home is a commitment, you are not locked into the same home for the next 30 years. It actually can create more opportunities for you. If or when you decide you have outgrown your current home, you have several options available. You could create a steady income by renting your home or if you have built up equity, you can sell it!
6. Renting is less expensive than owning- It is true that there are higher upfront costs to owning a home however, in the long run it may actually save you money. When you rent from someone else, they are in control of how much you pay, but when you buy a home you don't have to deal with yearly rent increases. Also when you own, you can hopefully build equity with your monthly mortgage payments, which you can benefit from when the time comes to sell your home. With rent, someone else is benefiting from your monthly payments and you’ll never see that money again.
I hope these myth busters helped! If you have any further questions about buying a home and the different options available to you, contact us today!
If you or someone you know is ready to buy or sell their home in the greater Tucson area contact us at TucsonMoves@thedesertduo.com