It doesn’t really matter what industry you're in there are always myths surrounding the ins and outs of the practice. We’ve all heard that doctors are all rich, right? Well, with $500,000+ of student debt and putting in 100 hours a week during residency while making not a lot better than minimum wages the “rich” life seems a long way off. How about the old “go to court to contest a ticket because the cop won't show up.” According to the Saskatoon Police department they do show up. In fact, they're paid to be there. You might be disappointed if you show up expecting to just get an easy uncontested ticket. Welp, myths plague the real estate industry too. Today I’m here to dispel and clarify some of the most common myths that homebuyers fall prey to!
Are you with me?!
All you need Is a downpayment.
This one comes from first-time homebuyers the most. Everyone gets excited about getting into their first home. Aww the freedom of ownership after a long stint of renting is liberating! This anticipation can sometimes lead to believing that once the downpayment has been saved up that’s all you need to finally be free of your smelly landlord that you never seem to remember the name of (this literally was me and Laurie in our first apartment 😆) Actually, you should look into having around $7500 or more (some suggest up to $20,000) on hand after the downpayment to deal with closing costs and the inevitable repairs/improvements that come with purchasing a new home. If you didn’t save up more than just the downpayment, what happens if you didn’t catch the shoddy microwave door, the blinds that don’t roll up properly or that basement sink that only seems to leak on Thursdays. Thats what this extra savings is there to cover you for. Save it up. You’ll be glad you did!
I have mo kids so school districts don’t matter to me.
Sometimes homebuyers get too preoccupied with how the house looks inside. That granite counter, dark hardwood and contrasting bright cabinets in the kitchen are certainly attractive and will add value when it comes to resale, but sometimes buyers lose track of other factors beyond the home itself. One of the biggest examples of this comes from couples that don’t have kids so they ignore the school zone they are in. It’s forgivable, but is going to hurt when they want to sell and the large demographic of couples with 1.5 children wont look at you. This applies to not only good school zones, but also proximity to parks and rec centres. You might not utilize these amenities, but for others not having them could be dealbreaker.
Lowballing is fine!
Ever tried to sell something online? $300 for a relatively new iPad. You know it’s a good enough deal to sell quickly and it properly represents the value of other similar iPads. Then the classic ‘lowballer' comes along and offers $60 AND they need you to deliver it two hours away for free. You’d take that, right? This is how home sellers feel when buyers come in with really bad low offers. It’s easy to convince yourself that if you come in really low that you’ll do better in the negations. What happens is that when you come in too low you run the risk of offending the sellers and being ignored. The trick to making this part of home buying work is to listen to your Realtor. A good agent will not only have comparable properties to see the true market value of the home you want, but they're experts in negations and are paid to defend your best interests. Bottom line is, work with your Realtor on the initial offer. Remember coming in low is fine, but too low and you risk being rejected. It’s an exciting stage of home buying!
Longer on the market is better deal for your negotiations.
Okay, you find a house that seems to be the right fit for your needs. Your Realtor informs you that the home has been on the market for 210 days. Hooray! They must be desperate! We have all the hand (bonus points to whoever catches the reference)! Anyway, there are sometimes factors at play that might make a home sit longer on the market. Sometimes weird architecture or the odd location keeps houses on market longer. This does not necessarily mean that the owners are desperate, and that you have all the advantage when it comes to negations. Days on market is a factor, but other things need to be factored in too!
Multiple price drops are sign you’ll do better in negotiations.
Just like the last myth, it’s easy to think that because a home has had multiple price drops you will be able to get a really great price after negations. This isn’t always the case. Some owners are just so tired of negotiating that they simply drop the price enough that they won’t engage in negations any more. It’s a take it or leave it situation. Keep this one in mind!
You can get pre-approval AFTER you find your dream home.
🚨 PSA 🚨 If you only learn from one of these myths let it be this one! Some homebuyers get so excited to get an offer on a home that they neglect to get bank approval. This is really risky business and no Realtor would ever recommend doing this. You may think that you have a good idea as to what you can afford, but after finding the perfect home it might not get approved by your mortgage broker. Sometimes something as simple as unexpectedly high property taxes disqualify you from completing the transaction and now everyone is frustrated and the deal's off. This could all have been avoided with proper approval and knowing what budget you can work with. The other benefit to having this bank approval comes into play when you are in a multiple offers situation. How seriously is a seller going to treat your offer if you have no way to prove that you can back it. If there are other offers on the table it’s very likely that you’ll get brushed aside or rejected outright. It’s not hard to go to your mortgage broker and find out what qualify for beforehand. Even better, when you have a home selected that you really want get a note from your bank approving that home specifically. That looks really good to sellers and it can show how serious you are.
Are you still with me haha. One more I promise!
Realtors can only show homes that are listed by our brokerage.
Not true. Boom, myth busted! Haha really though, just because a listing is with another brokerage, doesn’t mean that we can take you buyers out. Some people seem to think this, so knowing that it’s 100% not true opens up a whole world of possibilities.
Well, with all this myth busting out of the way, you're now ready to go out there and find your dream home. Ready to go? Be sure to call, text or email me and we’ll go shopping!
You know you really could have just watched the video above and spared yourself reading all this…👌
at KENNEDY Real Estate We bring “Local Experience” back to the Edmonton real estate market. Every community in Edmonton and surrounding cities has its own personal flavor and energy: it’s as important to understand the lifestyle opportunities each Edmonton community caters to while also shopping attributes of individual homes for sale.
We focus on being your Area and Lifestyle Specialists to better serve the needs of our clients on an individual basis in a unique way. Just as every Edmonto n neighbourhood is different, so too are the homes within it. We customize and promote all of our Edmonton and area listings to reflect the individual attributes, special features, and character of each particular property we list.