Don’t Fall for These Real Estate Agent Myths
Don’t Fall for These Real Estate Agent Myths When it’s time to buy or sell a home, one of the most crucial decisions you’ll make is choosing your agent. This choice will significantly influence your entire experience and how smoothly the process goes. As you consider potential partners, it's essential to understand what to expect and what to look for in an agent. Unfortunately, some myths may be preventing you from making the best decision. Let’s take a moment to address those myths and ensure you have the information you need to find the right agent for you. Myth #1: All Real Estate Agents Are the Same You may believe that all agents are the same and that it doesn’t matter whom you choose to work with. However, agents differ in terms of experience, specialties, and market knowledge, which can significantly affect your outcomes. For instance, you'll receive much better service and advice from someone who is a true expert in their field. As Business Insider explains: “If you were planning to get your hair done for a special event, you'd want to visit a stylist who specifically has experience doing that type of work — you wouldn't make an appointment with someone who primarily does kids' hair. The same concept applies to finding a real estate agent. If you have a smaller budget, you probably don't want to work with an agent who exclusively sells multimillion-dollar properties.” Take some time to talk with each agent you’re considering. Ask about their experience level and what they specialize in. This will help you find the one that’s the best fit for your search. Myth #2: You Can Save Money by Not Using an Agent As a seller, you might believe you can save money by not hiring a professional. However, the expertise, negotiation skills, and market knowledge that an agent offers often lead to savings and help you avoid expensive mistakes. Without their guidance, you might end up overpricing your home, a misstep that could cost you dearly as it sits on the market for an extended period. That’s why U.S. News Real Estate states: “When it comes to buying or selling your home, hiring a professional to guide you through the process can save you money and headaches. It pays to have someone on your side who's well-versed in the nuances of the market and can help ensure you get the best possible deal.” Myth #3: Agents Will Push You To Spend More You might also be concerned that an agent will pressure you into purchasing a more expensive home to boost their commission. However, that’s not how it should work. A reputable agent will respect your budget and strive to find a home that genuinely aligns with your financial situation and needs. With their market expertise, they will guide you toward the best options for you rather than trying to enrich themselves at your expense. As NerdWallet explains: “Among other things, a good buyer’s agent will find homes for sale. A buyer's agent will help you understand the type of home you can afford in the current market, find listed homes that match your needs and price range, and then help you narrow the options to the properties worth considering.” Myth #4: Market Conditions Are the Same Everywhere, So Why Do I Need a Pro? You might think that housing market conditions are similar everywhere, but that couldn’t be more inaccurate. Real estate markets are highly localized, and conditions can differ significantly from one area to another. This is why it’s important not to choose just anyone you find online. You should select an agent who is an expert in your specific local market. As a recent article from Bankrate states: “Real estate is very localized, and you want someone who’s extremely knowledgeable about the market in your specific area.” You’ll know you’ve found the right person when they can explain the national trends and how your area stacks up too. That way you’re guaranteed to get the full picture when you ask: “how’s the market?” Bottom Line Don’t allow myths to prevent you from receiving the expert guidance you deserve. With their market knowledge and valuable resources, a trusted local real estate agent is not just helpful—they’re invaluable. In what could be one of the most significant financial decisions of your life, having the right professional by your side can be a game changer. Let’s connect to ensure you achieve the best possible outcome.
Why Buying Now May Be Worth It in the Long Run
Why Buying Now May Be Worth It in the Long Run Should you buy a home now or wait? This is a question many people are asking today. While the answer depends on various factors, here’s something to keep in mind as you consider your options. When you purchase a home, you start building equity right away, and it can accumulate surprisingly fast—even with more moderate home price appreciation. Every quarter, Fannie Mae publishes the Home Price Expectations Survey, which gathers insights from over a hundred economists, real estate experts, and market strategists regarding their forecasts for home prices over the next five years. In the latest survey, experts anticipate that home prices will continue to rise nationally through at least 2028 (see the graph below): While home prices will differ across local markets, this indicates a national trend of continued price increases. Although the rate of increase may vary from year to year, the key takeaway is that prices are expected to rise consistently—albeit at a moderate pace. Though rising home prices might seem concerning now, once you own a home, that appreciation will benefit you significantly. Here’s a glimpse of the potential equity you can gain once you buy. The graph below illustrates the typical home value alongside the HPES projections, highlighting the equity at stake: If you purchased a $450,000 home at the start of this year, based on the current value and expert forecasts from the HPES, you could potentially gain over $90,000 in household wealth in the next five years. That’s a substantial opportunity. So, if you’re ready to buy and want to grow your wealth, this could be the right moment. With mortgage rates declining, now may be the time to take action. To explore your options and what makes sense for you, consult with a professional. They can provide insights into local home prices and how that affects your decision and future equity. As noted by The Mortgage Reports: “Given the intricacies of the current market, it’s more important than ever to stay informed and up to date about housing market conditions. Whether you’re looking to buy or sell in the remaining months of 2024, having a professional guide you through the process can make all the difference.” Bottom Line Deciding whether to buy now or wait is a personal choice, but gaining an expert’s perspective can be invaluable. They won’t pressure you, but they will highlight important factors you might not have considered, such as the equity at stake. If you need assistance in weighing your options and understanding how the current market impacts your decision, let’s connect.
The Down Payment Assistance You Didn’t Know About
The Down Payment Assistance You Didn’t Know About Believe it or not, nearly 80% of first-time homebuyers qualify for down payment assistance, yet only 13% actually take advantage of it. If you’re looking to buy a home, closing this gap is crucial—quickly (see graph below): Here’s what you need to know to make the most of your down payment in today’s housing market. Amplify Your Down Payment Potential For first-time buyers, the key to down payments is to take full advantage of the resources available to help you. Many options can help you reach your goal faster than you might think. For instance, there are loan programs that require as little as 3% down, or even 0% for qualified borrowers, such as Veterans. Additionally, there are down payment assistance programs, like grants, that can help cover your upfront costs. If you’re interested in exploring these options and how they might benefit you, connect with a trusted lender. Not checking what’s available could mean leaving money on the table and missing your opportunity to buy a home. These resources can enhance your down payment, which may lower your future monthly mortgage payments and reduce or eliminate fees like private mortgage insurance. Don’t Let News Headlines About Down Payments Scare You There’s one more point to consider. News coverage has highlighted that the typical down payment is on the rise. A report from Redfin states: “The typical down payment for U.S. homebuyers hit a record high of $67,500 in June, up 14.8% from $58,788 a year earlier . . . This was the 12th consecutive month the median down payment rose year over year.” But don’t let those high figures intimidate you. Just because the average down payment is increasing doesn’t mean that down payment requirements are also rising. It’s important to understand this distinction. Many buyers are choosing to put more down to counteract higher mortgage rates, and current homeowners are leveraging their equity to boost their down payment on their next home. As HousingWire explains: “. . . buyers are putting down a higher percentage of the purchase price to lower their monthly mortgage payment. And buyers also had more equity from their home sales, which gives them more cushion.” Let’s break those two reasons down a bit: 1. A bigger down payment helps lower your monthly mortgage payment. Affordability has posed a challenge for many buyers lately, which is why those who can make a larger down payment are opting to do so to help reduce their future housing costs. 2. Buyers who already own a home have a record amount of equity to leverage. Someone who purchased a home a few years ago has likely seen a significant increase in their property's value due to home price appreciation. As a result, these homeowners can make a much larger down payment compared to the average first-time buyer who hasn't owned a home yet. Bottom Line What’s the best course of action? Speak with a trusted lender about your options. They can help you understand your current situation and how to access the resources you may qualify for. Assistance is available; you just need to collaborate with a professional to make the most of it.
Is Your House Priced Too High?
Is Your House Priced Too High? Every seller wants to sell their house quickly, for the highest possible price, and with minimal hassle. You likely feel the same way. However, one of the biggest factors that could jeopardize your success is the asking price for your home. Setting the right price is one of the most critical steps in the selling process. So, how can you tell if you’re pricing too high? Here are four signs that your elevated asking price might be deterring potential buyers—and why relying on your real estate agent is the best way to adjust your strategy. 1. You’re Not Getting Many Showings or Offers One of the most obvious signs your house may be overpriced is a lack of showings. If it's been on the market for several weeks and only a few buyers have come to see it—or worse, you haven’t gotten any offers—it could be a clear indication the price isn’t matching up with what buyers expect. Because buyers who have been looking for a while can easily spot (and write off) a home that seems overpriced. Your real estate agent will coach you through this, so lean on their experience for what you may want to try to bring more buyers in, including considering a price cut. 2. Buyers Have Consistent Negative Feedback after Showings If, after your showings, the feedback from potential buyers isn't positive, it may be time to make adjustments. Comments from showings are crucial for understanding how buyers perceive your home. If they consistently feel it's overpriced compared to similar homes, it’s time to rethink your pricing strategy. Your agent will collect and analyze this feedback for you, helping you assess how your home compares in the market. They can also recommend specific improvements or staging changes to better justify your asking price or suggest a price that aligns with current buyer expectations. As the National Association of Realtors (NAR) explains: “Based on all the data gathered, agents may make adjustments to the initial price recommendation. This could involve adjusting for market conditions, property uniqueness, or other factors that may impact the property's value.” 3. It’s Been on the Market for Too Long A lack of interest will ultimately result in your home sitting on the market without serious offers. The longer it remains listed, the more likely buyers will question if something is wrong. In today’s market, where inventory is increasing, a prolonged listing period can make your home appear stale, making it even harder to sell. Your real estate agent can provide insights into how quickly other homes in your area are selling and explain what strategies are working for other sellers. This way, you can decide together if you want to make any changes. As a Bankrate article states: “Check with your agent about the average number of days homes spend on the market in your area. If your listing has been up significantly longer than average, that may be a sign to reduce the price.” 4. Your Neighbor’s House Sold Without an Issue Here's the final sign to watch for: if similar homes in your area are selling faster than yours, it’s a clear indication that something may be amiss. This could be due to factors like outdated features, a lack of upgrades, or a less desirable location. It may also indicate that your home is priced too high. Your agent will keep you informed about your competition and advise on any necessary changes to make your home more competitive. They can suggest minor updates that could enhance your home’s appeal or help you adjust your strategy to align with current market conditions. Bottom Line Pricing a home accurately is both an art and a science. It involves a thorough understanding of the market and buyer psychology. When the price isn’t attracting buyers, your agent is the best resource for guidance on what steps to take next.
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