There are a lot of first time home buyers in the market right now. Thanks to the $8,000 tax credit especially, and the low prices and high inventory, many people are entering the market. But many buyers share some beliefs that turn out to be myths! The Real Estate Buyers Agent Council (REBAC) listed 10 of those myths. We discuss them here, with some info from Randy Templemann, ABR.

1. All real estate agents are the same.

   No! We’re not all the same. Different agents have different designations, different levels of experience — even different personalities can matter when it comes to finding the right agent to work with you on the purchase of your home. For buyers, finding someone with an ABR (accredited buyer’s represenative) designation has been given the best tools to assist buyers. Buyers should interview three different agents before settling on one to help find and purchase a home. I always recommend this. You need to know if an agent is a good fit for you.  Check out our recommended list of questions to use when interviewing your Realtor, and remember, The Amy B Sells team has 2 Buyers Agents ready to assist you 24/7!  Check out our Buyer Tool Box for any tools and materials you could need when buying a house!

2. The agent on the For Sale sign will look out for my interests.

   Randy Templeman says “buyers are more likely to shop for homes than to shop for an agent to help them find for homes.” This can result in a buyer using a listing agent to purchase the house they like. This is not the best idea. That agent is looking out first for their own clients, the sellers. And if you decide not to purchase that home, or something goes wrong, you may not have anyone on your side. It’s really best to find your realtor first and then have that agent take you to see the properties you like.
   It’s kind of like going to court and using the opponents attorney to represent you.  The Amy B Sells team believes every person should have their own representation, and we do not believe in Dual Agency.  In addition, when you choose to work with one Realtor, you are able to schedule private showings on your own schedule.  No more waiting for the listing agent to let you in, if they even show up!

3. I can find all properties for sale on my own.

   The internet has lulled buyers into a false sense of securty – thinking they can find all the properties that are out there on their own. This may not be the case. Sometimes the sites lag real time. Properties may not be listed all at the same spot, or some properties might not be as easy to find. Your agent has access to all the most updated and complete information about houses on the market. Your agent also understands what properties might be best for you based on your needs and wants, which can avoid you taking the time pursuing houses that just aren’t right for you.

   The Amy B Sells Team will take you through the buying steps, and make you a VIP Buyer.  As a VIP Buyer, you will get automatic emails and texts on listings that meet your needs on a daily basis, most of the time before other buyers get out of bed!  This is important because in this market, the good ones sell FAST!

4. If I just wait long enough, I’ll find the perfect home.

   Templeman says “there’s no such thing as the perfect home. Buying a house requires compromises, a big dose of reality and an awareness of market conditions.” If you’re holding out for a home that has absolutely everything you want, it probably doesn’t exist. That’s why it’s good to have an agent working with you who can help you with a reality check — a lot of first time buyers find that the house they end up selecting is the perfect house for them, even if they’ve made compromises on details.

5. I’ll improve the odds of finding the house I want if I work with more than one agent.

   Nope. New buyers might think they can cover more ground if they work with multiple agents at a time. But if you’re doing that, chances are you’ll end up viewing the same houses with multiple realtors. This can cause a lot of issues when it comes to purchasing the house regarding which realtor receives the commission on the sale. You do not want anything complicating the purchase of your dream home. Any agent you work with should ask you if you’re working with anyone else, and it’s in your best interest to be honest. (It could happen around here, if you’re shopping in both Ohio and Kentucky. Some of us are licensed in both, but plenty agents aren’t.)

6. Buying a house is as simple as agreeing on a price and signing a few papers.

   This is definitely not true, especially in this market. Not surprisingly, first time buyers aren’t likely to realize all that goes into settling a contract on a home. There’s more issues than just price, like your loan, title, appraisal, inspection and a host of other surprises for first timers. A good Realtor will tell you about the process and manage your expectations, as well as explain every part of the home buying process to you.

   The Amy B Sells Team helps more than 25 buyers a year purchase their dream homes, first time buyers and move up buyers.  We are prepared to navigate the way to the closing with you!

7. Foreclosures offer the best deal.

   Foreclosures are not a simple situation, and can sometimes be far from the best deal. When purchasing a foreclosure, you’re negotiating with a bank and not a person, which can be really tough. Secondly, many can be overpriced because the bank is hoping to make a good profit. Thirdly, these homes can sometimes be left in poor condition. If you get your heart set on a foreclosure, you absolutely need to have a good buyers’ representative on your side.  I cant really begin to explain to you the reasons why Foreclosures aren’t as great as some of the media make them out to be.  My rule of thumb, is, if you are buying your first home, or intend to put your family and children in the home, a Foreclosure is not for you.  Also you need to have a ton of cash on hand, because they often have a lot of unexpected surprises.  Check out this article on why Foreclosures are good for some, but not for many.

8. Getting a mortgage should be quick and easy.

   Not even close. There are new laws passed on appraisals which slows down the process considerably. Also, banks are really tightening their requirements. Templeman says “Many buyers question and resent the whole lending process.” A good buyers’ rep will help you understand the process and help you get prepared. If a buyer is well prepared, provides everything the bank needs, and applies for a loan for an appropriate amount, this can increase the likelihood of success. But with all the recent news, more and more first time buyers are coming to understand that it can be harder to secure a mortgage loan these days.  Check out our recent blog posts about the changes in financing rules, and subscribe to the blog to keep up with them as they come about and we post them for you to be aware of!

9. All mortgages are essentially the same.

   Again, with all the recent news, you would expect new home buyers to know that not all mortgages are the same. But this may not be the case. Your agent can help you find a good lender who will explain all the differences in mortgages. “First-time buyers often don’t look at enough options before they buy. In assuming that all mortgages are the same, they deprive themselves of making a fully-informed decision,” Templeman says.

10. If something appears on the inspection report, the seller has to fix it.

    This is not necessarily true. If the inspection reveals something major, there is a period of renegotiation. The seller might agree to fix it, the price may get changed — it depends on the inspection results, what the buyer and their agent request, and what the sellers are willing to give. Inspection problems ultimately become a judgment call. Hopefully, if you are a first-time buyer, your agent has discussed what can happen in an inspection before you get to that point. An experienced agent even knows some red flags when they see them before you even go under contract for a home.

    In addition The Amy B Sells Team attends inspections with our buyers so that we can share our experiences and knowledge with you at the house and help you understand the issues that arise.  It also helps us to see things with our own eyes and better describe and explain them to the Listing Agent and negotiate necessary repairs more swiftly.

The Amy B Sells Team has been serving Cincinnati and Northern Kentucky for more than 4 years.  We are a team of two, both assisting Buyers and Sellers through successful Real Estate Transactions.  The Amy B Sells Team works with more than 30 families each year to put them into their dream homes.  We hope to be able to share our experiences and put our extensive knowledge and practice to work for you!

We pulled some of this info from an article written by Randy Templeman in REBAC‘s Today’s Buyer’s Rep.

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