4 Misconceptions about Buying Real Estate: Debunked

By Fran Campbell - December 23, 2020

There is A LOT of information out there regarding the "best practices" or "best advice" for buying real estate. While it's great to have so many resources at your fingertips, it also allows for the spread of misinformation. Buying real estate at the Lake of the Ozarks is an exciting experience, and one that should be handled diligently - after all, it's a large investment. That's why your premier real estate agents at the Lake of the Ozarks, the Fran Campbell Team, are here to debunk a few common misconceptions about buying real estate.

Misconception#1: Buy Purely off Logic

While it is important to carefully think through the buying process, that's not to say that it should be a solely intellectual purchase. Deciding which home to purchase is a large and impactful decision. It's vital to the buying process to carefully analyze the homes you're interested in for comparisons. The numbers can help you choose the best fit for you. However, don't ignore your senses or emotions. If a particular home gives you a special feeling, don't ignore it! After all, you'll be spending much of your time in this space... don't let just numbers keep you from it.

Misconception#2: The Seller's Asking Price is Final

The amount that you'll actually pay for a home depends on how your negotiation process goes. The seller's asking price is just a starting point, there are several factors that will influence the final figure. Some of these factors include any deferred maintenance/home condition, agent negotiations, and sometimes financing options. If you are the sole buyer interested in a particular home, you may be able to negotiate a lower price, just so the sellers can get it off their hands. However, if there are multiple buyers interested, this can spark a bidding war. Potentially pushing the price past the original asking price.

Misconception#3: That you NEED a 30-Year Fixed Loan

While 30-year fixed mortgages do have many advantages, to say that they are a MUST have for every home purchase is simply not true. There are many mortgage options out there, and the perfect one for you depends on your situation/plans for the home. Depending on how long you plan to own the home, whether it's primary, secondary, or investment property and its relation to any other properties that you own can affect which loan option would suit your needs best. If you're in doubt, contact your mortgage lender. Their experience and expertise in the field will help navigate you to the best possible solution for your needs.

Misconception#4: Renting Can Save me Money to Buy a Home with Later

Owning a home can actually be cheaper than renting in many instances. When you rent, your payments are subject to a possible increase every time you renew your lease agreement. This is also money that you pay to your landlord, never to be seen again - there is no equity being built here. If you have a fixed-rate mortgage, however, your mortgage payments will not increase. Plus, all the money you pay into the mortgage is building equity that you can recapture again later should you decide to rent or sell the property down the road.

Allow the Fran Campbell Team to Help You Become a Homeowner!

As you can see, buying a home is a large investment that has numerous challenges along the way, from the decision making and communication processes to the closing date. However, when you hire a professional and experienced real estate team at the Lake of the Ozarks, you'll receive expert guidance and negotiation skills throughout the entire process. You enjoy the experience of buying a home at the Lake of the Ozarks, while we handle all the hard stuff! Just give our team all call with any mortgage inquiries, we'd be happy to share our knowledge and expertise!

Contact the Fran Campbell Team to get your home SOLD!