The Truth About the Housing Market

Coldwell Banker's Market Watch

In today’s uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers:

Myth #1: The longer the house is on the market, the more you can negotiate.

When buyers ask, “How long has this property been on the market?” they think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.

Myth #2: Sellers today are desperate.

Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. (I’m being transferred to Dallas) is a very different answer than (We’d like to find something bigger.) The first homeowner is hot to trot.

Myth #3: You can't buy a home today with less than 20% down.

FHA loans require only 3.5% down, and you can even ask the seller to pay the closing costs.

Myth #4: You need good credit to get a good loan.

Once again, the FHA to the rescue! They often lend money to buyers with less than perfect credit.

Myth #5: You shouldn't buy before prices have bottomed.

You can’t sharp shoot the real estate market. Once you identify the “bottom,” prices have already moved up.