Top Myths In Real Estate
Looking to buy or sell real estate? If so, you should be forewarned about unsolicited real estate advice from others.
This scenario seems to be the norm, especially for first time home buyers or homeowners looking to sell. However, one must take caution and know that every market is different. Not to mention, only a licensed real estate agent within your area will truly know the complexities and legalities that exists in your market. Regardless, there are several myths that continue to baffle potential homeowners and sellers. Our team of real estate experts have debunked some of the following myths and hopefully answered a few questions.
Must Have 20% Down
For first time home buyers, the 20 percent down expense is usually a deal breaker. It’s hard to save 20 percent while paying rent and getting established in your career. However, there are several mortgage options that require less than 20 percent. An FHA mortgage loan only requires 3.5 percent. If you’re a veteran or currently enlisted, you may qualify for a VA mortgage which has no down payment. Conventional loans are also available for less than 20 percent. However, you may be subject to a monthly PMI fee for a short duration.
Thinking that your home with a new kitchen or bath upgrade will yield larger returns might set you up for disappointment. Your return on investment in these areas may not be as high as you think. In fact, most kitchen upgrades will only return 66 percent according to U.S. News. Bathrooms have an even lower return. A professional real estate agent can determine if you’re better off doing a small update like painting or an entire remodel.
Pricing for Negotiation
Housing markets differ widely depending upon the state, region and even neighborhood. While everyone wants to get a great return on their investment, you still need to price correctly for the market. Homeowners who price correctly tend to sell homes faster than homeowners who overprice. If a home is overpriced, it may sit on the market giving the impression that there are issues. Furthermore, if a property is underpriced, chances are there may be multiple bids—which will drive the home price to market value.
Overall, it’s always best to speak to a licensed professional first. Find someone who works within the local area, and remember, an agent can guide you throughout the entire process.
For more of our expertise input on this subject read our recent blog, “What to Expect from Holiday Endeavors”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Working with The Daniels Group will give you with the advantage of having local experts to ensure that you have a successful real estate transaction. From buying, selling and investing to financing options and more, we have the expertise and resources to help you achieve your goals. Call us today at (858) 361-5561 or email us anytime by clicking here.