Myths about Agents
"If I have several agents looking for homes on my behalf, I'll find a house more quickly."
Like most relationships, this one thrives on communication, loyalty and trust. By working exclusively with one agent, you will improve both the process and the results.
"If I want an agent to represent me as a buyer, I'll have to pay them myself."
Buyer representation means that the sales associate you select works with your best interests in mind. The agent representing the buyer receives their portion of the commission from the seller. Real estate agents are paid on a commission basis by the seller of a home.
Myths about Buying
"I should find a new home first before I sell the one I own now."
If you find a buyer for your first home, you'll have more negotiating power in both the sale of your current home and purchase of a new one.
"I just made an offer on a house I love. But so did several other people. I'm worried that someone else will outbid me and get it."
Different things motivate different sellers. In addition to price, a seller will look at the other terms of the offer, including conditions, financing and closing date. Many times a clean offer from a pre-approved buyer will be more attractive, even if the price is slightly lower.
Myths about Mortgages
"I had some debt when I was young and I ruined by credit. I'll never get a mortgage."
You don't know what your credit history shows until you look. And if you do have blemishes from the past, even bankruptcy, many lenders will overlook problems if the past two years show good credit practice on your part.
"I heard you need to put 25% down to buy a house. But my friend says that you can get a mortgage with no down payment at all!"
Both scenarios are uncommon. Although there are a variety of financing programs available, most require you to put at least 5-10% down.