Whether you flip homes for a living or are looking to purchase your first home, there are many myths about buying or selling. Be cautious: Here are just a few that immediately come to mind in the 10 min I have before going out to do an offer for a cherished buyer of mine.
Myths:
1. Your first offer is your best offer.
No doubt this was invented by a Realtor who was looking to close a quick deal and fire up the paperwork. I've had offers the day of a listing release that didn't compare to the one that came in 3 weeks down the road. I do believe there is a "right" buyer for your house. And I do believe the "best offer" is just that..."the best offer for .....you"!
2. In multiple offers, you'd better have the biggest offer price.
Not always the case. Preparation and a clean offer can be worth more to a seller than 10k. If the seller needs a quick closing date or needs to have a clause that he/she can extend the closing date...if a buyer can meet these specific needs...this can help win the house. Your agent needs to learn the motivation and needs of the Seller before the offer presentation.
3. Selling in the spring market gets you the biggest buck.
Not always. There's a lot of competition in the spring market. If better featured homes then yours sell for x amnt, then you may have to settle for less. Probably a truism when you have the best looking house on the street. Sometimes selling in the dead of winter with no competition is the best time to sell.
4. Prior to selling...redoing the bathrooms or kitchen will net you a lot more then the cost of renovating these areas.
If you use high end finishes and make sure that your choices are neutral and you have good layouts and user friendly space to work with...yes, it should be the case. But if you bang out a mediocre bathroom or kitchen, depending on the price point, if the buyer thinks that its not suitable, he/she will not pay your for the upgrade in the way you hoped. Frankly, if they're going to redo it anyway, you should have left it alone in the first place. You may now be eating into your return.
5. The best home inpection company will find the issues with the house.
While there are better inspectors....if you purchase a house in the winter, depending on the exact day...most companies will not be able to look through the snow and ice on the roof to detail the state of the roof like they would in the summer. The snow around the perimeter of the house makes finding foundation cracks on the exterior more difficult too. Also, you can't test the A/C in freezing weather. So no matter the inspector, winter buying has some risks.
6. Always sell before you buy or buy before you sell.
This is the toughest one. You need to know your specific circumstances. You need to determine|:
-whats the inventory like to buy in my range
-what's the competition like to sell my house
-will your bank help you bridge finance? what are their specific rules and costs?
-if you sell first do you have a plan B if you don't find the house you're looking for?
-if you buy first...lowball what you'll get for your house so you're not surprised
7. Seller always keeps the deposit if the deal doesn't go through.
Luckily I haven't been thru this scenario. Here's the thing. The money is held in trust with the listing brokerage. In order for it to be released to the Seller it has to be legally directed. In other words, the Seller may have to go to court to get the money. The Seller may sue for damages should the seller have to resell property in a less hot market. For specifics here...speak to your lawyer.
8. If you buy a house with a legal pad park then it automatically transfers to you upon close.
New rules state that the new buyer must reapply for the legal permit to be in order.
9. If the current owner has a street parking permit for his second car, then you'll have no trouble getting one too.
Better double check with the city here. Many streets actually have waiting lists for street parking. You can check prior to making an offer of the status of this so you aren't buying a parking 3 streets away!!
10. All agents do the same job! So I will use my sister in-law who is part-time!
No way will I accept this. I work too hard to accept this.
Go to http://www.TheSmithsBuyAHouse.com and learn more around this and me!!
Cheers-
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