We come across many common misconceptions when working with buyers. Here a few tips for buyers to battle some of these myths.
DYK? You do not have to have 20% downpayment to purchase a home. There are government loans such as THDA that provide down payment assistance, and with good credit, you may qualify for a conventional loan with only 3% down.
DYK? As a buyer in Tennessee, you do not pay your realtor's commission, the seller of the home you wish to purchase pays the commission for both the buyer's and seller's agents. The exception would be an FSBO (For Sale By Owner) where the homeowner may, or may not be willing to pay commissions.
DYK? The onsite agent at a new construction development is not an agent working for you - they represent the builder. If you a view a home with them, they often require a buyer to sign that they will not use their own representation. Call your agent to accompany you to the build site, or you will have compromised your negotiating power and ability to have your own representation.
DYK? The same principal applies to calling the listing agent on the sign outside a home. That agent works for the seller/homeowner. Especially in this competitive market, buyers need strong representation, and the listing agent is legally and ethically bound to put the interests of their client first - which is the seller. Don't give up your negotiating power! If you are nervous to commit to a buyers agent, enter into an agreement for a short period of time, say a couple of weeks, to see how you work together. You can always extend the agreement once you feel like it's a good fit, or find another agent once the 2 weeks is up.
DYK? Renting is often more expensive than buying. Once you factor in how much you are paying in rent, and not building equity, you may see that the same payments, or less, towards your own home may be less expensive than you think.
DYK? Paying off a loan can hurt your credit in the short term. When planning to buy a home, buyers often think paying off debt will make their credit score go up - which is true, but only in the long term. Try not to make any large purchases, or pay off any large debts in the year-6 months before you plan to buy.
DYK? Your Realtor can show you any property that is available for sale, not just their own listings! Once upon a time, in a land far far away, agents had territories and geographical restrictions in certain markets. Today your buyers agent can show you any property that is for sale in your market.