Costly Home Buying Myths

Buying a new or existing home has never been an easy task especially for first-timers. In case you are planning on purchasing one for your family, perhaps you’ve been running around for some advice. Most people would have told you that buying a house is very expensive. While it’s true that acquiring a house is a big investment, your home shouldn’t be costly as long as you know how to make a good deal. Keep in mind that real estate transaction is not the same as it used to be back in the old days. So, dealing with the seller can be done even without the help of an agent if you know how to do it.

As a buyer, you might have heard lots of costly home buying myths while you’ve been shopping around for the right house. Most of these myths come from your friends and relatives. While some are half-truth, they shouldn’t stop you from doing what you think would help you to get the perfect house. Knowing these myths will allow you to separate reality from belief. Here are some of the popular home buying myths you need to address before you purchase a house.

  1. Always Get a Real Estate Agent – false. Basically, real estate agents are only there to help you to find the house you want for you and your family. Although they can make your life less difficult when it comes to finding an ideal house, you can always save serious money if you go directly to the seller. You can always do what real estate agents do for a living. In fact, you can do much better as you are the one who’ll purchase the house. After all, it’s your money that will be spent for purchasing the house and not the agent’s. So, doing things your way will help you to save some money for other purposes.
  2. The First House is Always the Right House – some people believe that the right house attracts the right person. This is a big myth that should be erased from the buyers’ minds. Always keep in mind that there’s always a better house than what you see now. Thus, if you look around and spend some time shopping for the ideal house, then you’ll be able to find the perfect home for the family. Basically, don’t pay for a house that commands a high amount but doesn’t live up to its value. Use your wise judgment to see if you pay for the right house. If not, then move on and look for another one.
  3. A Huge Down Payment is the Best Payment Option – yes it’s true that putting up a huge down payment would help you to reduce the monthly interest for the house. However, business-minded individuals can use their money for other purposes such as use the money as additional capital for their business. Some people can also use this for other important things. A big down payment can be useful if you don’t need a huge amount of money at the moment of purchase. If you can use it for other purposes though, it would be better if you use it instead of giving it up as an additional down payment.
  4. Buying Outweighs Renting – oftentimes we tend to think that buying a new house is better than renting one. The answer would vary depending on the needs and situation of one another. If you are planning on staying around for good, then buying a house would be the perfect decision. However, if you are there temporarily (as a student for example), then it would be better to rent because of the lower monthly payables.
  5. Credit Score Must be Good – while it’s always easier to acquire a house if you have a good credit performance, some sellers would still accommodate buyers with struggling credit scores. A bad credit report doesn’t always mean that you aren’t a good payer. In fact, a lot of companies nowadays no longer depend on your credit history. There are lots of factors most sellers look at when it comes to seller aside from your credit score. Of course, there is a price in terms of higher interest rate if your credit history is bad.
  6. New Houses Are Expensive, Existing Ones Aren’t – if existing houses aren’t expensive, then some people wouldn’t live on the streets. Although they are less expensive, they still command a high amount of money. In fact, some existing houses are actually more costly than the new ones. You can also find new houses that are inexpensive. Some houses are built for middle class people. These types of houses come less costly as compared to the existing houses that actually command a higher price in the market. If you’re planning on getting the existing house, don’t forget to shop around and compare the prices. Who knows, you might get a brand new house that’s not as expensive as the existing one.
  7. You’ll Spend More If You Don’t Get Help from an Expert – some of our friends and relatives would even tell us to get help from an expert. Although people who work in the field of real estate know a great deal about houses, you can always make a good transaction all by yourself. All you need is a little bit of research, comparison, and wise judgment in order to land the perfect house. Once you’ve done all of these, then you’ll be able to work out a great deal even without the help of a professional.
  8. Do It Yourself– for first-timers, it would be less costly if you hire the service of a professional realtor. Aside from teaching you the dos and don’ts of purchasing a house, they can also assist you in finding the right house. In short, instead of spending money on research and shopping around for the ideal house, they can give you the list of potential homes you would like. DIY or do-it-yourself shopping doesn’t actually apply to all people. If this would be your first time to buy a house, then you would benefit if you obtain a helping hand. Other than that, most of the myths aren’t true as they’re just myths in the first place.

Purchasing a new or existing house shouldn’t be a hassle to the buyer when it comes to its costs. Aside from the tips mentioned above, you need to do research on whether what you’ve heard are myths or realities. Knowing truth from beliefs will help each and every buyer in obtaining the perfect house for their family.

Myths roam around because of the people who believe that they are true. Putting a stop to these rumors will help you to make better decisions when it comes to purchasing a house. Once you’ve put an end to these beliefs, you can free your mind of the things you’ve once thought were costly. Now, you can decide what move to make in purchasing the house you think would fit to your lifestyle and of your family as well. Choose the house that you like, without worrying about the so-called costly home buying myths that has been annoying buyers for generations.