You only have to view the millions of houses that are now listed online to see how the internet affects real estate tremendously.
While this is most definitely superb for the home buyer, there are some side effects. There is a lot of poor advice being circulated, while some of the readily-available data is also interpreted badly which never helps matters either. The result from all of the above? All sorts of myths occur – many of which couldn’t be further from the truth.
If we were to scour the internet and find every single one, the volume of these myths would be scary. Instead, we’ve collected several of our favorites and compiled them all into this page.
Myth #1 – If you don’t have children, you don’t need to research schools
We’ll start with one of the more interesting myths as put simply, it’s one that’s quite understandable.
If you don’t have kids and are not looking to start a family anytime soon, the immediate thought during the house buying process is to simply discard the schools-factor which seems to bolster every house price in the vicinity.
However, regardless of your own personal circumstances, this is something that matters greatly. Unless you know for sure that you are going to stay in this property for life (and few people are put into this category), you should be still taking the local neighborhood into consideration. Otherwise, when you do come to sell, this is something that’s going to hang over your property and only make it attractive to a small market. This is one of the reasons why a lot of new-builds like the Grand Homes communities are in-demand right now; their location is often picked strategically and will generally be good for schools.
Additionally, if there are good schools it can quickly suggest that the neighborhood in general is good. While this isn’t a rule that’s set in stone, it’s worth keeping in mind as an indicator.
Myth #2 – The only money you need is the down payment
This is one of the most common myths that are lurking around, which is quite scary when you consider how late some home buyers start to realize their real predicament.
While beer-mat calculations might be a good start for any real estate purchase, make sure that every sum you do takes into account all of the real costs.
There’s far more to a purchase than a down payment, there are all sorts of small fees involving the likes of lawyers and agents that can make up over 5% of the purchase fee.
Myth #3 – You should always take the 30-year mortgage
The problem is the total amount that you end up repaying if you immediately take the 30-year mortgage option. Not only is the interest going to accumulate more in this case, but it’s also likely to involve a bigger interest rate as well.
While not everyone’s position will allow for a shorter-term mortgage, at least do all of the sums before signing on the dotted line.