5 Myths About Real Estate in SWFL
Buying a house is a big deal, especially if you’re a first-time buyer. Many people find the process intimidating, or think that home ownership is completely out of their reach. Unfortunately, there are many myths and misconceptions that have grown up around the subject of real estate that have made so many people think they can’t possibly buy a house. Other pieces of “common knowledge” purport to be money-savers, but can actually have the opposite effect! It’s time to debunk these myths.
- You need a down payment of at least 20% of the selling price.
This may have been true in the past, but times have changed! Nowadays there are so many mortgage options available that you can’t really predict how much you’ll need for a down payment until you’ve spoken to a lender or broker. There are even mortgage lending options available specifically for first-time buyers that may require a much smaller down payment to qualify for.
- You should buy a fixer-upper to save money.
It’s true that sometimes it’s cheaper to buy a rundown house and fix it up yourself, but not always! If you know what you’re doing and can handle renovations yourself for the most part, this could be a great option. However, if this isn’t the case, the overall cost can skyrocket after you’ve factored in the price of hiring contractors plus paying for materials. Be honest with yourself about how much you can take on before you decide to buy a fixer-upper.
- Renting is cheaper than buying.
Surprisingly, this is not always the case! You do usually need to come up with a down payment, but quite often people find that their monthly mortgage payments are less than what they paid in rent. Plus, if you can provide a larger down payment, those monthly bills could go down even more.
- Rising interest rates mean this is a bad time to buy.
Mortgage interest rates may be creeping up, but take a look at the historical context. Rates have been much lower overall than they were prior to the housing market crash, and have quite a ways to go before they reach any new heights. Interest rates can go up or down at any time, but not by all that much, so don’t worry about waiting for rates to fall before you buy.
- Fall and winter are bad times to buy.
You’ll often find more homes on the market in the spring and summer, but that doesn’t mean you should avoid buying in the other seasons. Fewer houses on the market often means better prices for buyers. You’ll also face less competition, so you may find that the sellers are more willing to negotiate.
Get the Facts From the Link Team
Do you have any other questions about the home buying process in SWFL? The Link Team would be happy to set the record straight and help you decide whether now is the right time to buy a house. Contact us now through our website or call (239) 357-5058.