5 Home-Buying Misconceptions That Can Cost You Big
Misconception #1: "Buyer Agency agreements only benefit real estate agents." Reality: Buyer Agency agreements were designed to protect buyers, not agents. Before these agreements existed, both agents in a transaction were legally required to represent the seller, leaving buyers at a disadvantage. To ensure your agent negotiates on your behalf, insist on a Buyer Agency agreement. Bonus: sellers typically pay your agent's commission!
Misconception #2: "Pre-approval 6 months before house hunting is unnecessary." Reality: Contacting a REALTOR-recommended Mortgage Loan Officer as soon as you start thinking about buying can save you thousands. They can identify credit issues early, help you strategize for the best rate, and qualify you for better programs. Even small score improvements can significantly lower your monthly payment.
Misconception #3: "Nobody pays full list price for a house." Reality: Focusing on list price instead of market value can be costly. Sellers may underprice to sell quickly or overprice if they owe more than the home is worth. A "deal" based on list price could still mean overpaying. A good Buyer's Agent will help you determine true market value.
Misconception #4: "You must call the listing agent to view a property." Reality: Any REALTOR can show you any MLS-listed property, regardless of the listing company. The MLS enables this. Remember, the listing agent represents the seller and aims to get the highest price. Your Buyer's Agent, bound by a Buyer Agency agreement, will prioritize your interests and can even show you FSBO homes.
Misconception #5: "A good REALTOR should be an expert in construction, electrical, plumbing, crime rates, and zoning laws." Reality: A good REALTOR is an expert in the local market, trends, paperwork, negotiation, and marketing. For questions outside their expertise, they'll connect you with the right professionals. Agents who confidently offer opinions on areas they're unlicensed in often get themselves and their clients into trouble. Zoning laws, lot lines, and safety standards can be complex and ever-changing. Trust your REALTOR to provide reliable resources rather than guesswork.
The Bottom Line Buying a home is a significant investment, and misconceptions can be expensive. By understanding the true role of Buyer Agency agreements, the importance of early pre-approval, the difference between list price and market value, the flexibility of property showings, and the scope of a REALTOR's expertise, you can navigate the process with confidence and avoid costly missteps. Partner with a knowledgeable REALTOR who will prioritize your interests and guide you to the right resources – it's the surest path to home-buying success.
