Meredith & Larry Hunt, The Hunt Team - Real Estate Consultants

MSNBC.com
10 real estate myths for buyers and sellers

The truth about the housing market In today’s uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers, and five held by sellers.

BUYERS MYTHS

Buyer myth #1: The longer the house is on the market, the more you can negotiate. When buyers ask, “How long has this property been on the market?” They think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.

Buyer myth #2: The sellers today are desperate. Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. “I’m being transferred to Dallas” is a very different answer than, “We’d like to find something bigger.” The first homeowner is hot to trot.

Buyer myth #3: You can’t buy a home today with less than 20 percent down.
FHA loans require only 3.5 percent down, and you can even ask the seller to pay the closing costs.

Buyer myth #4: You need good credit to get a good loan. Once again, the FHA to the rescue! They’re happy to lend money to buyers with bad credit.

Buyer myth #5: You shouldn't buy before prices have bottomed. You can’t sharpshoot the real estate market. Once you identify the “bottom,” prices have already moved up.

SELLERS MYTHS

Seller myth #1: Now’s the absolute worst time to sell. Not necessarily. It depends upon where you live. Many of the worst hit markets, like Las Vegas, Phoenix or San Diego, are already beginning to turn around. And if you’re a homeowner who wants to trade up, the loss you’ll take on your current home will be more than offset by the bargain you’ll get on the next one.

Seller myth #2: Never respond to a low-ball bid. All buyers today feel obligated to put in low-ball offers to see if the seller bites. If you respond with a reasonable counter offer, most buyers can be convinced to come up in price and make the deal.

Seller myth #3: The first offer is never the best offer. Most sellers believe that it’s smart to hold out for something better. But four times out of five, the first offer is the best you’ll ever see.

Seller myth #4: 'I can always reduce my price later. Sellers often price their home high for a few weeks just to test the market. But buyers shop by price bracket and if your house is in the wrong one, you’ll just help sell everyone else’s home while yours sits there overpriced. And reducing your price later in small increments puts you in the position of chasing the tide as it goes out.

Seller myth #5: Before you refinance, shop around. You can if you want, but you’ll usually get the best deal from your current lender. And you’ll be able to negotiate your closing costs.

Source: Barbara Corcoran
Updated: 5:07 p.m. ET Jan. 23, 2009

© 2009 MSNBC.com
URL: http://www.msnbc.msn.com/id/28818023/

Meredith has been awarded the Certified Buyer Representative CBR® designation for
successfully completing extensive training in all aspects of representing a buyer in the purchase of property. You can expect to receive superior service and analysis every step of the way.

A recent survey completed by the National Association of Realtors shows that over 40% of the buyers are now represented by a Certified Buyer Representative in the real estate transaction. In some states, the figure is over 80%. Considering the rapid growth of buyer agency, it is imperative that a buyer find an agent who has been trained to
professionally represent them in the transaction.

That, specifically, is the reason the certification mark CBR® Certified Buyer Representative was created. Issued in 1993 by the US Patent and Trademark Office, this mark allows consumers to identify a buyer agent who has been trained and who possesses the skills necessary to represent purchasers in a legal, ethical, and non-adversarial fashion.

Those agents who have acquired this designation have demonstrated their commitment to full client level service to the buyer. They are armed with forms, checklists, and disclosure documents to perform a level of diligence in the real estate transaction that is unparalleled in the industry.

When deciding on an agent to represent you, ask about their credentials and training. Many real estate agents attempt to practice buyer agency without acquiring the skills necessary to perform professional representation. The CBR® designation assures you that the agent you hire has been trained and will perform to the level of the competent professional, working in your best interest to meet your personal needs in your next real estate transaction.

Larry has received training and has substantial experience in the sale and purchase of foreclosed properties and with negotiating short sales. More and more first time home buyers are looking for a bargain, however dealing with banks and lending institutions can be difficult and frustrating. Dealing with mortgage providers is not like dealing with a seller. These institutions respond slowly, and often times will not provide the basic services one would normally expected a seller to provide. If your search will include foreclosed or short sale properties, you need an agent who has had the training and experience to properly represent you.