- Omega Financial Mortgage
5 Myths About Buying a Home in Today's Hot Real Estate Market
While it’s true that we’re seeing a very hot real estate market, that doesn’t mean everything you’re hearing about the seller’s market is true. On the contrary, there are a lot of myths out there about the current market. If you’re looking to buy, make sure you know what the conditions are really like.
Here are five myths about buying a home in today’s market:
1. Buying a home right now is too expensive for most people. Although home prices have been rising at somewhat quickly over the past year or so, it’s important to note that the record-low interest rates have helped to make home-buying affordable in many areas. Also, keep in mind that home values are continuing to rise right along with home prices, which means that buying a home is a good investment.
2. You will have a lot of competition from other potential buyers. Many potential buyers are afraid that they won’t be able to compete in multi-bid situations or with cash-only buyers. While we are seeing these trends in some areas of the country, multi-bid situations and cash buyers are the exception rather than the rule. In order to get into the home that you want, the key is to act fast and make sure your offer is strong.
3. Getting a low interest rates is the most important financial consideration. Yes, the interest rate on your new mortgage is important, but the type of loan you’re getting—and the terms of that loan—can be just as important. Also, don’t overlook the value of your mortgage professional. Choosing the right broker or lender can be extremely important. In the end, don’t have tunnel vision and forget about the other aspects of your new mortgage.
4. You should waive the home inspection if you really want the home. Waiving the home inspection can be a tactic used in an attempt to win a bidding war, but it’s a myth that all buyers are choosing to do this nowadays. Although you may end up getting the home if you waive the inspection, the price you’ll have to pay if the home has problems could be steep. Make sure you talk with your real estate agent if you’re considering waiving the inspection.
5. In the current market, you shouldn’t ask the seller for contingencies. While sellers do generally have the upper hand in today’s hot market, that doesn’t mean that you can’t ask for certain concessions if needed, especially smaller ones or ones that may be relatively seller-friendly (i.e., ones that a seller will have no problem agreeing to). Also, remember that whether or not you should ask for contingencies will depend on the situation as all transactions are different.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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