5 Buyer Myths I Have Lately Encountered

With so much negative press out there about the national real estate market, I see alot of fear in my buyer's eyes lately. Here are 5 Real Estate Myths that I am noticing my buyers lately have:

Myth 1: The longer the house is on the market, the more the seller will negotiate. Most of the time, the seller is stubborly holding on to a price that the market isn't responding to. Ask your agent to look at the listings history, seller's mortgage information in the public records, and to ask the seller's agent why the seller is selling. Then try to determine how motivated the seller is.

Myth 2: Sellers today are desperate.
To find out how "desperate" a seller really is, it comes down to their motivation. A seller who has 3 months to move maybe more motivated than a seller who wants to move to a larger house. Again, have your agent do some digging.

Myth 3: You need 20% down to purchase a home.
If you are a first time homebuyer, there are many programs offered for down payment and closing cost assistance. You would be surpirsed at the income requirements. Also, FHA requires only 3.5% down and you can ask the seller to pay closing costs.

Myth 4: You need to have good credit to get a loan
Check on FHA loans. Also, if your credit is too bad for an FHA loan, start working with a lender to work on your credit and get it where it needs to be. They can be a great resource for guidance so that even if you can't buy now, maybe in 6 months you will be able to

Myth 5: You shouldn't buy before the bottom has hit.
No one can predict when the bottom has hit until it is gone and on the upswing. Only after it is in the rearview mirror can analysts see it and say "oh, there it was." If you are ready to buy now, then make the move. Prices and rates are at historic lows. If you keep waiting for the bottom, I guarantee you will miss out.

The last thing I can suggest if you are thinking about buying is to keep up with your local market. The Intown Neighborhoods in Jacksonville are their own markets and many are in the recovery phases. Don't let national news dictate your decision, get to know your local market.