11 Myths Homebuyers Should Never Believe

11 Myths Homebuyers Should Never Believe

From the open house to securing a mortgage to closing day, purchasing a home is a complex and daunting process. Here are 11 myths that home buyers should abandon if they hope to keep a clear head and maintain realistic expectations during the house-hunting process.

By Debra Immergut

Always Make a 20 Percent Down Payment

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As home prices climb, home buyers have a tougher time accumulating a cash down payment that amounts to 20 percent of the typical purchase price. The good news: You can usually get your dream house with a smaller up-front payment. On the downside, however, you’ll have to buy either private mortgage insurance or government insurance for at least a few years. Be forewarned: This insurance can add hundreds of dollars to your mortgage payment each month.

A House Inspection Is Optional

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Too often, inexperienced buyers agree to waive the inspection in a hurry to nail down a deal. Don’t fall for this! Skipping the inspection is almost always a mistake. Far from a mere formality, an inspection is a great way to slow down the purchase process, uncover major problems with the house before completing the sale, and find ways to negotiate the final price. Don’t omit this vital step.

Choose Only a 30-Year Fixed Mortgage

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Your parents probably had a fixed, 30-year term on their home loan, and they may even have stayed in the house long enough to pay it off. But recently, other options have increased in popularity, and home buyers may find real advantages—and much lower interest rates—with 15- or even 7-year loans. Be sure to explore all mortgage options when buying a home, and discuss the decision with a banker or financial adviser.

Cash Buyers Always Win

Sure, sellers love the simplicity of accepting a big pile of cash instead of having to deal with buyers who need financing. But an all-cash offer isn’t a guaranteed winner. Home buyers who are willing to outbid an all-cash offer certainly have a decent shot at nabbing the house.

Real Estate Is Always a Safe Investment

During the housing crash of 2008, many homeowners learned firsthand the risks of investing in real estate. Since then, however, housing prices have bounced back, and plenty of young buyers are entering the market. All the same, when you’re in the process of buying a house, remember that what goes up can also come down.

Buy the Worst House in the Best Neighborhood

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The strategy of searching for a low-priced steal in high-priced ZIP code isn’t always the best game plan. If the cost of making the house livable will be sky-high, or if it has too many drawbacks that can’t be fixed (for example, if it’s located next to an interstate or a noisy business), then the house may not be such a bargain after all.

Start Looking for Homes in the Spring

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Sure, spring is the most active time for real estate investment, because both sellers and buyers are preparing for the summer moving season. There’s no need to wait until the daffodils bloom, though, to begin your home search. House-hunting in the fall and winter may actually save you money because you’ll probably be competing with fewer potential buyers, which should hold prices down.

Skip the Agent and Go Straight to the Internet

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While home buyers can certainly find listings online, they may be better off working with a buyer’s agent instead. Buyer’s agents do more than just show what’s for sale. They also give the lowdown on comparables in the market, help steer buyers away from properties that have potential problems, and provide guidance during the negotiation phase. It’s always a smart idea to have an experienced pro on your side.

Your Accepted Offer Is Set in Stone

offer-in-stone

So, the buyer has told the seller what she’s willing to pay, and the seller has accepted. While both parties have agreed to the offer, it’s still not set in stone. If house-related issues turn up during the inspection, or if the seller asks for an unusually fast closing, the buyer may be able to shave hundreds or even thousands of dollars off the price.

Prequalification Means an Automatic Loan

bank-qualification

Before buyers start looking for houses in earnest, they’ll probably go through a bank’s prequalification process to find out how much money they can borrow. Be aware, however, that banks don’t always disclose how theoretical this number can be. Once the bank completes a more heavy-duty vetting of a buyer’s finances, it may decide that it’s willing to loan less than originally planned—or even nothing at all.

Buyers Without Kids Don’t Need to Pay Attention to the Schoolsn

Even buyers who don’t have school-aged children should think twice before moving to a neighborhood with poorly ranked schools. Great school districts make for highly coveted neighborhoods, so when you’re ready to sell your home in the future, the next buyer may be willing to pay a premium to be in your district. So, before you buy, take time to study up on the quality of the nearby schools.

Living Room Decorating Ideas

Living Room Decorating Ideas

Mix and match patterns, embrace bold colors, layer rugs, and so much more! Try these tips to create a pretty space to enjoy conversations with friends and family.

No matter if you call it a living room, family room, den, or even a keeping room–you’ve got that one room in your home, aside from the kitchen, that’s intended for both family and company. And, we bet, you want it to look both pulled together and comfortable. We are here to tell you it’s possible to create a well-decorated living room that will impress company and will be enjoyed by your family. Here are our best easy decorating ideas ranging in all different styles for those that love a more formal living room or a cozy den or a relaxed family room. What ever your style–we’ve got the decorating tips and ideas for your beautiful living room, beautiful family room, or your beautiful den. One thing is for sure, you’ll be inspired by all of these chic decorating ideas.

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Coastal Lowcountry Living Room

Materials that connect to the location are key to character building. Sisal hints at the marsh grasses in an elegant way and is also durable, easy to clean, and ideal for layering. The alligator skull speaks to the local wildlife, while palms in antique glass and fern-patterned pillows are additional nods to the room’s Lowcountry vibe and provide a carefree polish.

Layering a vintage kilim over a natural sisal rug acts as an attractive barrier against water, sand, and other elements.

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Fargo the Chairs

These oversize sectionals allow everyone to sit, without touching each other. The bench-style seat cushions look cleaner and don’t shift around like multiple seat cushions do.

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Lighten Up with White

Achieve a luxe neutral look with white upholstery and decorative accents in a variety of light hues to add extra depth and dimension.

Similar throw pillows here.

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Invest in Antiques

As your budget allows, invest in one fine antique per room. Here, the a round French marble-topped gueridon table becomes a focal point of the space.

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Look for Inspiration in Unexpected Places

This homeowner found inspiration for her walls in a bag of gourmet marshmallows: She used the soft, sophisticated colors to dictate her palette. The plate rack that once showcased antique plates in her parents’ home holds cherished photos.

5 Ways You Can Benefit From a Home Energy Audit

5 Ways You Can Benefit From a Home Energy Audit

A home energy audit checklist covers all the factors that affect the efficiency of your home. By completing this checklist, you can pinpoint improvements that will help conserve energy and reduce your utility bills. Recommendations may range from fixing small leaks and drafts to infrastructure upgrades, such as installing high-efficiency windows or a solar water heater.

No matter how much you’ve invested in your home already, or how efficient you think it is, periodic audits by a qualified professional are one of the best ways to prevent waste and expense. A home energy audit can:

  • Find the issues you didn’t know existed. Taking steps today to fix a minor problem such as a leaky pipe or poorly sealed window is among the best things you can do for your property. An energy audit is the first step in finding the subtle, hidden problems that add up to make your home less eco-friendly overall.
  • Help you prioritize repairs. The audit process isn’t just a way of determining what’s wrong — it’s also a useful tool for prioritizing upgrades and identifying where your renovation dollars will be best spent.
  • Make your home more comfortable. Following through with the key recommendations of a home energy audit will make temperatures in your home more stable and increase indoor air quality by keeping out drafts — benefits you’ll feel every day.
  • Add to your home’s resale value. An energy-efficient home is more attractive to potential buyers, not just because it’s more economical to heat and cool, but also because it demonstrates you’ve made forward-thinking investments to keep it running its best.
  • Reduce your carbon footprint. A significant portion of greenhouse gas emissions starts at home. Performing an energy audit will show you where to make improvements that will reduce your overall carbon footprint and reliance on fossil fuels.

Is the Cost of an Energy Audit Worth It?
An energy audit should be part of your regular home maintenance schedule. Like any preventive maintenance, it is an investment that saves you money in the long run. A home energy audit cost varies from supplier to supplier. Many solar installers offer them free for anyone considering adding a large solar array to their property.

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