15 B.S. Facts about Real Estate

How can something be a Fact, but not be true?
In the Internet Age,
B.S. facts abound ...especially about real estate. For 2 Reasons:

1. Old News lasts a long time on the internet.

2. All Real Estate Is Local.
What is true for one location
may not be true for another.

Just the Facts Ma'am Just the Facts.

B.S. Fact #1
"Homes are Overvalued Today."

“At today’s house prices and income levels, mortgage rates would have to be nearly 7 % before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.” ~ Frank Nothaft, Freddie Mac VP and chief economist

B.S. Fact #2
"New Homes are Not Being Constructed."

NAHB, National Home Builders Association, has been reporting month-over-month increases in housing starts and completions throughout 2014, with every indication that it will continue in 2015.

B.S. Fact #3
"My house is worth much more than my neighbor's because...
[insert any of 2 dozen reasons]"

Sellers don’t determine how much their house is worth.
a) Buyers do, and
b) Appraisals do.

For Additional Reading on the appraisal process:



What Appraisers Look At During A Real Estate Appraisal, by Bill Gassett, Metrowest Mass. Realtor

Tips For Dealing with Low Appraisals – for Buyers and Sellers, by Debbie Drummond, Las Vegas Realtor

An Interview with An Appraiser, by Lynn Pineda, Coral Springs FL Realtor, and Ryan Lundquist, Sacramento Appraiser [Sacramento Appraisal Blog]

B.S. Fact #4
"We're headed for another housing Bubble!"

The preponderance of economic reports are saying “no to another housing bubble”, Trulia, Forbes, Inman, and Kiplinger are just a few.

without so much Angst?

B.S. Fact #5

Since the Fed stopped buying up government securities (Quatitative Easing) they predict rising rates.
By waiting around for 3% rates, a potential buyer is taking a great risk that the cost of a home is only going up, and they may be priced out of the market in the near future.

Additional Reading:

"Three Mortgage Rate Predictions from 3 Industry Experts", Tim Lucas at My Mortgage Insider, Brad Yzermans at Home Loan Artist, and Luke Skar, Madison Mortgage Guys.

B.S. Fact # 6
"I was told it was a bad time to buy
(or sell) real estate."

Amazing, how a single negative factor, among thousands, can overshadow the entire subject of real estate for some people. They draw large conclusions from one anecdote. One person's "bad time for real estate" is not everyone's.

B.S. Fact #7

There are many loan programs available that require less than 20% for a down-payment.

Loan Options

• FHA loans require 3.5% down
• Fannie Mae and Freddie Mac now back loans with 3% down
• VA requires 0 down
• There are conventional loans for 20%, 10%, 5%, and as little as 3%
• There are down payment assistance programs, consult a local lender.

"But Zillow Said My House is Worth More!"

Zestimates are more than 10% off over 1/3 of the time.

"All Mortgage Lenders are the Same."

If you’ve ever had to make the phone call to your seller a week before settlement, and tell them that the buyer’s financing fell through because of a lender’s incompetence, you know that All Lenders are NOT the Same.

For Further Reading:

1. Questions to Ask Your Lender, by Inlanta Mortgage,
2. Don't Choose A Mortgage Lender for their Sales Gimmick, by Colin Robertson,
3. Shopping Around: How to Compare Mortgage Rates, by Sean Young

B.S. Fact #9 1/2:

"All Realtors are the Same."

See B.S. Fact #9

Replace "Realtor" for "Lender"...
All Realtors are NOT the Same. Choose a great one!

B.S. Fact #10
"Foreclosures are dragging prices down, I'll never get what I want for my house."

"Foreclosure filings have been falling every month in 2014, and there’s no reason why they won’t continue to fall throughout 2015."
Daren Blomquist, VP of RealtyTrac.

B.S. Fact #11

Staging is Advisable

• There is evidence that a staged home may sell more quickly,
• And may sell before other like homes, however...
• There is no evidence that a staged home will sell for more money.
• Staging is still worth the effort.

Related Articles

• The How and Why of Home Staging, by Househunt,
• Staging Does Not Sell A Home, by Bill Gassett,
• What is Home Staging, and What it is not?, by Kevin Vitali

B.S. Fact #12

We want to be your Realtor for life!

B.S. Fact #13

As real estate professionals, we are local business people. We have to live in our communities, see past clients at the grocery store, the hardware store and the little league games. We care about so much more than a few more dollars on our commission.

B.S. Fact #14

I call this problem: Too much HGTV! While home sellers need to make sure their home has the right updates to compete in their market, it doesn’t have to be costly.

Related Articles

• Should Sellers Renovate or Sell? by Anita Clark
• Avoid Over Improving Your Home, by Tina Isrealson
• The 6 Best, and Worst, Time-Tested Remodeling Projects, HouseLogic
• 5 Best and Worst Home Improvement Projects, Bill Gassett

"Who Needs A Realtor, Anyway?"

Realtors negotiate and buy and sell 24-7, 365 days a year.

The average homeowner buys and sells 5 times in their life.

They bring a team of professionals to the process…lenders, title attorneys, home improvement, stagers, painters, and many more.

How to Choose A Realtor

• Top 5 Questions for Buyer's Agents, by Ruth Lerner
• Can You Trust Your Realtor?, by Andrew Fortune
• How to Interview a Realtor When Selling Your Home, by Kyle Hiscock

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Expect Great Service for the most important financial decision of your life.

The Highland Group
with Turning Point Real Estate in Frederick Md
301-401-5119 - Cell
301-831-8232 - Broker

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