Here are some common myths about buying and selling in today’s market.
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A few myths are circulating around the real estate market that can cause buyers and sellers to have the wrong impression about the state of the market as a whole and hesitate with moving forward. Here are the top myths I’ve seen and the truth behind them:
1. There’s less competition when buying a home. The reality is that with low interest rates, there has been much more demand, which has created stronger buyers and offers.
2. People aren’t selling their homes during the pandemic. Some people may wait but many don’t want to. The number of pending contracts and sold homes show us that people are indeed selling and moving.
3. The economy is going to crash, and with it, the real estate market. This is clearly a myth; the real estate market is much different now compared to what it was back in 2008 when we experienced a big crash. Americans have more home equity than ever before, and lending is now much more regulated, meaning that we don’t see subprime loans (which caused the market crash before). If there is any market change, it’s more likely to be a subtle adjustment than a real estate crash.
4. Home prices have dropped dramatically. Fortunately for all of us, this has not been the case. Some people put their purchases on hold, but activity then picked up very strongly. Based on supply and demand, we are seeing appreciation.
5. It’s unwise to buy a home without visiting it in person first. This is no longer true. With the technology, virtual tours, and contract inspection clauses we have, it’s safer now more than ever to move forward with a purchase, since you’ll have a built-in safety net.
If you have questions or would like to discuss anything I’ve covered today in more detail, please feel free to reach out to us. We’d love to help.