Do you have to compromise a lot? Not exactly. Set your expectations real right from the beginning. You may not be able to buy a four bedroom, two-and-a-half bath colonial house, not older than 10 years under $200,000 in a specific town. Be realistic. Or you’ll end up waiting for years before you buy your home.  

MYTH: I DO NOT NEED A REALTOR. I KNOW WHAT I AM LOOKING FOR AND GOOGLE IS THE GREATEST RESOURCE.

TRUTH: Buying a home requires more than a list of do-it-yourself tips. There are lots of articles on what to do and what not to do when you buy or sell your home. The Internet is surely a great resource. But it is not trustworthy, and you cannot be sure of the motivations of the author.

It is very common to ask a friend or family about certain issues, but your best bet will be working with a professional. A real estate professional has objectivity and perspective. They have knowledge of the market and they know how to deal with tricky situations – working towards the ultimate goal of your acquiring the home you like, rather than break the deal on ego issues or on insignificant matters.

MYTH: IT IS A BUYER’S MARKET. I LIKE THE HOME BUT CAN WAIT TO MAKE AN OFFER

TRUTH: There are some buyers who are more motivated to buy a home in a specific neighborhood than you are. The media has clearly conveyed to today’s educated consumer that it is a buyer’s market and houses stay on the market for a longer period.

The truth is, if you do not want to lose the home you have liked, you must act quickly. Chances are, there is someone out there who has seen this home before you and is likely to make a decision before you. It might happen just because you wanted to wait and test the market without an idea about the seller’s motivation.

MYTH: I NEED AT LEAST 20 PERCENT DOWN PAYMENT TO BUY A HOME

TRUTH: If you want to buy a home and if you do not have 20 percent money for the down payment, there is no need to worry. Today, there are many innovative programs available in the financing industry. They want you to borrow as much as you can – provided you satisfy the guidelines they have for the borrowers. And that means you can borrow even up to 103 percent of the cost of the home — taking care of closing costs as well. Of course, your decision should reflect your financial situation. Check with the lending institution how much more money you can borrow — without paying PMI (what is PMI?) in many cases.

MYTH: REAL ESTATE AGENTS ALWAYS REPRESENT SELLERS. OR WORSE, THEIR OWN INTEREST

TRUTH: An agent can work for a seller or a buyer, and their loyalty is always toward their client. Homebuyers can expect complete confidentiality from their agent. The agent is more like a consultant who will guide the buyer through home inspection, working with a real estate attorney and/or the lender. It is very unlikely that the agent would want the buyer to pay more for the home just to earn more commission. In fact, with the relatively new concept of an exclusive buyer’s agency, you can expect an agent to do everything to gain an advantage for you as a buyer. This agent should tell you everything about the home, including crime rate, poor school system and traffic problems.  

MYTH: I WILL GET THE BEST DEAL IF I CALL THE LISTING AGENT OR MAKE AN OFFER AT THE OPEN HOUSE

TRUTH: May be, may be not. The fact is, the listing agent represents the seller and his/her contract with the seller binds him/her to serve the seller best.

Do not disclose anything confidential to the listing agent until you are sure what you want to do. If possible, approach the listing agent through a realtor you can trust and who can advice what is best for you. Have someone represent you and your best interests — someone who will keep all information confidential, including your ability and willingness to pay more for the home.

Buying your home is perhaps one of the biggest single investments of your life. Don’t take it lightly. Invest wisely.

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