5 Common Myths by First-Time Home Buyers.

Today is Marketing day at the Bowler Realty office. I thought I would share some of the Common Myths by First time Home Buyers.

Myth #1: All Real Estate Agents are the Same

Buyers are lead to believe that anyone holding a license to sell real estate is capable of offering the same service. This is not the case. With any profession there are are some that excel, and try to raise the bar for the industry and there are some that just do the motions to get by.

One way of helping buyers know who is above average is to look at the designations of the agent. As a buyer I would prefer to have a "Accredited Buyers Representative, (ABR)" or a "Certified Residential Specialist, (CRS)" on my team working with me to find my family a home.

Myth #2: Finding Properties "On My Own"

Many buyers are looking on there own. They feel that driving around neighborhoods and pulling flyers or surfing the Internet for listings they are going to find the right house for them. Don't get me wrong, this works to get an idea of price ranges, areas, and to start to get to know the market. The Internet is great with its pictures and virtual tours, however it is just a tool. There is no better way of comparing homes than by the feeling you have walking in the front door, seeing the rooms and yard, touching the cabinets and opening the closets. The best way to do this is to use a good real estate agent. It will save you time pulling fliers and help you focus in on areas that you like. They can also access what is for sale as well as what has sold.

Myth #3: If I use an Agent it will cost me more.

False, False, False... First of all, in many cases the Buyers do not pay any commission unless they have already agreed to. Many first time home buyers especially do not understand the process. When a seller lists their home for sale they agree to pay the brokerage/agent helping them (the agent putting the sign in the yard) and the brokerage/agent that finds a buyer (like you) for their home. If you are unsure who is paying the commission ask your agent, they will know how they are getting paid.

I like to use the analogy of a team. If this is your first game and you have never played the game before, wouldn't it help to hire, at no cost to you, a coach that knows the game and the players (Loan Officers, Appraisers, Home Inspectors, etc.)? If you don't use an agent you could lose BIG.

Myth #4: I have to work with the Agent on the "For Sale Sign"

This is a common blunder! The agent on the "for sale sign" is representing the Seller... not you! Now that agent in most states can represent the buyer as well, but isn't this a conflict of interest? YES. Because they are trying to get the most money for their client the seller and at the same time get the lowest price for the buyer... It sounds to me like the fox guarding the hen house, it is a fine line to tread and many lawsuits in the real estate industry are due to this issue. In my opinion it is best to steer clear all together and get your own Buyer's Agent, that you have hand picked, who knows the process and will help you negotiate with the Seller via the Seller's Agent.

Myth #5: Foreclosure homes are the best deals.

With so much about foreclosure in the media, many first time home buyers feel that these are the best deal. Well, they can be. Foreclosure is now a BUZZ word. Just because it is listed as a "Bank Foreclosure", it may not be as good of a deal as you think. What buyers need to understand when working with banks, many times they are slow to make decisions and they are going to call the shots. It may or may not be in the best interest of a buyer to purchase a foreclosure. Some things to look at are the condition of the home and cost of repair. Many bank owned or REO homes may need work. My experience is that banks sell homes in "As Is." condition. Meaning what you see is what you get. Also many banks will ask you to waive certain rights guaranteed you by law. One I commonly see is to waive the right to a Sellers Real Property Disclosure Form. Because the bank has never been in the home they do not want to disclose to you if the toilets, shower, roof etc. work properly. This is something you should talk about with your agent before looking to hard at bank owned homes.