BY JAMES SARLES
As many of us have experienced, the winding trail that leads to the purchase of your new property can be full of twists, turns and potential detours, marked with signposts of misinformation and half-truths that can mislead even the most worldly-wise homebuyer. The real estate business is subject to the opinions of would-be experts, armchair consumers who presume to know ALL about buying and selling homes. That is why the advice of an experienced real estate professional is essential to keep you moving in the right direction.
Here are 3 common Home Buying Myths myths that sometimes confuse buyers into making misguided decisions that they may regret later on:
1.You can buy a home with no money down. While there are special loan packages that allow buyers to purchase a home with a minimum down payment and some sellers will make very special finance deals to make life easy, every real estate transaction requires the buyer to come up with some amount of cash. Even if the down payment is very low, there are other expenses associated with buying property. There are lawyer fees, government stamp tax, and real estate fees to name a few. As my grandmother used to tell me “If it sounds too good to be true it probably is. Make sure you consult a real estate attorney or talk to a real estate broker before you jump into a deal and find out you are in over your head.
2. For Sale By Owner homes are always a better bargain. Owners who sell their homes without benefit of representation by a professional realtor often misread the local market and overprice the home. The property may not be worth what you and the seller think it is, and the result could be that you pay more than you should while thinking you are getting a great deal. The inexperienced seller can mishandle key aspects of the process, such as the choice of contingencies, inspections, title clearance, deadlines and disclosures. Expensive real estate lawsuits often arise as a result of disputes over undisclosed material such as defects that the For Sale Buy Owner Seller is hoping will go unnoticed. And worst of all without a real estate agent deals can fall apart over silly little items as the emotions get hot. I have seen deals fall apart over a chandelier so it is good to have a skilled negotiater between the buyer and seller to make sure the deal goes through.
3. Buying real estate is a simple, straightforward process. This is at best wishful thinking, but untrue. Real estate transactions are complex and negotiations can get tricky where buyers and sellers want to walk away from the table. Buying a home requires the correct execution of an assortment of documents which could include: property inspection reports, mortgage documents, deeds, insurance forms, conversion costs, Foreign Investment Approval, Central Bank Approval, Condo Board Approval etc. A variety of complications can and do arise and it is the experienced real estate agent and conveyance lawyer who knows how to make the deal work!
Please do not get me wrong and think that buying and selling property has to be complicated and stressful. The process can go very smoothly if you have a good team with a lawyer and a real estate broker working together to help you through the process.
Before I sign off on today’s Lets Talk Real Estate article I would like to remind everyone to donate to a Haiti Relief Fund. The people of Haiti desperately need your help and to add insult to injury believe it or not there was another aftershock yesterday morning just as much-needed medical aid was starting to reach the earthquake ravaged country. We are collecting funds at the Coldwell Banker James Sarles Realty office at # 9 Regent Centre for my Rotary Club, The Rotary Club Of GB Sunrise so if you don’t know where to give my office will be happy to help. Thanks for reading Lets Talk Real Estate and good luck to all you buyers and sellers. Until next week.
