Whether you’re an experienced Real Estate afficionado, or you’re working towards your first Real Estate transaction, buying or selling a home can seem intimidating. This is especially true right now. That’s where we step in! Our goal is to provide real, relevant, timely information to our clients. Information that helps make them feel comfortable and confident in their decisions. Empowering our buyers and sellers to make the best decisions possible.
That’s why today, we’re going to debunk a few of the most common Buyer misconceptions in the industry.
Myth #1: You Need A 20 % Down Payment to Buy a Beach-Home
We’re starting with this myth today because it is probably one of the most common misconceptions we hear from our clients. We’re not sure where this myth came from. While it is true lenders typically want you to put 20% to lower their risk, there are plenty of loan options available that require significantly less money up front.
So, here’s our first tip: Ask your local Realtor for the names of the three best lenders in the area. Call those lenders, and see who gives you the best options, the best rates, and offers you the most comfort. Now when you find that perfect beach home, you’re in a position of power. You’re pre-approved, you have a loan plan you like, and you’re working with a local lender (which reflects well with the Seller).
Myth #2: You Don’t Need a Realtor to help you buy your beach-home.
This is a myth we have been hearing more and more, especially after the recent NAR Settlement, which we will without a doubt write a blog about in the future once we know exactly how it has impacted our industry. While this myth isn’t ‘technically’ a myth (by law you don’t need a Buyers-Agent to buy a home), we think it is certainly pointing homebuyers in the wrong direction. Let’s say, for example, you hire the best realtor in Ocean City, MD. That agent is going to have SO MUCH knowledge about the local real estate market, a long list of connections with local service providers and other real estate agents, and a slew of other contacts they can utilize to help you find the best home…. And, they’ll be savvy enough to help negotiate the best price FOR YOU.
Even more importantly, they’ll know where you SHOULDN’T buy, and they’ll make sure you know everything before you make a decision. Buying a home in Ocean City, MD or the surrounding beach areas can be a stressful process, let a top real estate agent in OCMD help guide you throughout the whole process and save yourself the stress!
Myth #3: Pulling Your Credit Score to Apply for a Mortgage Hurts Your Credit Score
FALSE: When new home buyers are beginning their search, they are often times nervous about applying for a loan, or getting pre-qualified for one because they don’t want their credit score pulled. That’s because someone (incorrectly) told them it would hurt their credit. While this may be true if you pull your credit score over and over again for different reasons, usually multiple pulls on your credit score within a short period of time for a mortgage are only treated as one. This means you can shop for rates and loans without significantly harming your credit score! So, don’t shy away from shopping rates… you want to get the best deal you can on your new mortgage!
Myth #4: Listing Your Home at The Highest Possible Price Will Get You the Most Money
FALSE: While this myth may have been true in real-estate markets of the past… We’re no longer living in the past!
In fact, it’s quite the opposite. In today’s real estate market, the savvy Realtors and smart Sellers are doing the exact opposite. If they think their OCMD condo is worth $500,000, they’re listing it for $485,000 and letting the property get bid-up. They’re allowing the market to create the urgency as a result of the perceived ‘value’ of the list price. Often times selling for (or over) that $500,000 benchmark.
However, if that same seller had listed it at $525,000, that property would likely sit on the market and/or receive lower offers. Ultimately, the sellers would likely end up reducing their price, losing any momentum from the market, and eventually selling for less than $500,000.
Needless to say, we run into this issue a lot when helping our clients list their Ocean City, MD homes. Our best advice…. Be smarter than the market. Work smart, not hard, and let the market do the work. That starts by partnering with a local Realtor EXPERT. Not just any Agent, but an Agent that KNOWS the market, and KNOWS how to navigate the current market conditions.
Remember this: The highest list price DOES NOT always mean the highest SALES price.
Myth #5: All Real Estate Markets Are the Same
FALSE: Once again, this isn’t as common of a myth as the others we’ve mentioned, but we feel it is important to touch on. Our real-estate market is different every year! Sometimes changing within the same month. We often see ‘non-local’ real estate agents helping clients buy or sell their beach-homes, and we stand back and scratch our heads. While we’re sure that those agent’s are absolute rockstars in their hometown, they’re not up-to-date on the pulse of our beach market, and they tend to miss the mark with their recommendations to their clients (aka… it costs them money).
Tip: You want to make sure you work with a local beach-Realtor, and you want to make sure they’re a Rockstar. Think about this question…. When’s the last time you heard of a beach-agent selling homes in Baltimore or DC? You probably haven’t, and that’s because they typically don’t! They know the beach market, and they’re EXPERTS in the beach market. So, do yourself a favor and hire a true expert!
Taking the Next Step
Now that we’ve helped clarify some of the most common misconceptions we see about real estate when we are assisting our clients at the beach, we think you’re ready to take the next step! Whether you’re looking to buy your first OCMD beach condo, sell your single-family home in Ocean Pines, expand your Ocean City, MD real estate portfolio, or anywhere in between, we’re here to help! Don’t let these misconceptions hold you back, contact a great local realtor in OCMD and take the next steps in your real estate journey!
See You at the Beach Soon!
Grant Fritschle
Email: grant@grantf.com
Cell: (410) 430-5880
Office: (410) 524-6400
Jon Barker
Email: jon@markf.com
Cell: (410) 935-3810
Office: (410) 524-6400