Myth #1: People with transferable jobs needn’t invest in homes
Your Home is always a good investment whether you choose to live in it or not. Home is an attractive long term investment , there’s a very good likelihood you will be able to sell your home for a profit because of appreciation later in the future.
Myth #2: Effective Property Staging Is an Expense
Effective staging yields profit hence should be considered an investment, not an expense. Staging a home increases the offer price by between 1% and 5%, compared to other similar homes on the market that aren’t staged. Staging remains an important tool because a well-staged home looks better in photographs—and most buyers are looking for homes online.
Myth #3: The Right Buyer Will Pay What I Want for My Home
A buyer will always consider prices of other houses in that same location to avoid fraudulent or expensive buying. Overpricing your home means many potential buyers won’t ever see it. Nowadays, most home buyers start their search for a home online, filtering by region, housing type and most importantly, price! In fact, a recent survey revealed that price was the most important factor when shopping for real estate. This highlights the importance of doing your research and getting comparables when setting your listing price.
Myth #4: Your only upfront cost is your down payment.
Lawyer fees, land transfer taxes, Mortgage Fees if applicable and other closing costs all factor into play. While the purchase price is the main focus for the majority of homebuyers, closing costs can add anywhere from 1.5 to four per cent on top of the home’s price. Budget for legal and administrative fees, home inspection, mortgage default insurance when down payments are less than 20 percent of the purchase price, Land Transfer Tax, property tax, appraisal fee, home insurance, moving costs and more. On a $500,000 home, closing costs can range from $7,500 to $20,000. Make sure you budget for this .
Myth #5: You need a high credit score to buy a house.
Buyers with lower credit scores can qualify for mortgages with higher rates of interest. Your credit score is a measure of your financial health. According to the Government of Canada, your rating indicates the risk you represent for lenders, compared with other consumers.. High scores are good news, and will typically secure a better mortgage rate, since you post a lower risk. Borrowers with poor credit will likely require a down payment of at least 20%.
Myths might refrain you from buying a good property for yourself. Work with a team of trusted professionals to dispel some of those real estate myths, and turn your dream home into a reality.
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