Top Myths of Buyers at the Time of Property Purchase

By : 360 Realtors

21 July, 2016

Buying a house is everyone’s desire but since it is the biggest investment of one’s life, the decision often has mixed feelings attached to it. There is lot of thinking, planning, analysis and calculations to be done before making this huge investment. One may feel excited, nervous, happy and even emotional at times. And along come anxiety, tensions and stress regarding the uncertainties and misconceptions about the whole process. In case the person is a first time buyer, there are a lot of preconceived misconceptions attached that might be a result of bad word of mouth which may lead to problems at the time of purchase. So it is important that the buyers should be aware of all types of myths and should get rid of them before initiating the entire process.

Some of the most common misunderstandings of the buyers while buying real estate are:

Down Payment

Many prospective home buyers are under the impression that down payment is all you need to pay initially at the time of buying a house.  They are not aware of the other associated costs and fees that need to be paid besides the down payment and which are equally important to arrange for. These extra charges are mortgage insurance fees, loan application fees, underwriting fees, attorney fee, bank appraisal, property taxes and many other types of inspection and court fees. There are other legal charges also like stamp duty, service tax, VAT, registration charges etc that need to be paid. All these charges are to be paid at the time of home purchase only. So before choosing a house to be bought, the buyer should arrange for sufficient funds in order to settle all these costs at the time of purchase.

Perfect Credit

Another major realty misconception is regarding the financial credibility of the buyer. Most of the people think that if they have a high credit score only then they will be eligible to purchase a house. However, this is not true. People who have a lower credit rating are also equally eligible for availing a home loan though the loan amount approved will vary and might not be as what you desire. But they stand an equal opportunity to take a home loan and purchase a house.


Purchase of home

The first time buyers may feel that purchase of home is simple and easy process but in reality it has many parties involved from the date of agreement till the final closure of the deal like the lender, the agent and the advocate for getting the paper work done and for checking the authenticity of the documents. So it is always wise to take the help of a professional and well qualified agent for getting excellent quality of services.


Real Estate Agent

Real estate agents or brokers are people who have an expertise and experience in the buying and selling of properties.They have thorough market knowledge and will help you in the entire process taking care that nothing is missed out. Many people feel that there is no need to hire a real estate agent as long as you they know the entire process and can follow all the steps one by one. Some people feel that there is no need to engage an agent and bear extra costs when you have all the information available online. But buying a home is a very tough job especially for the first time buyer as here are a lot many things to be done and kept a track of. It is always advisable to search for properties through an agent in order to have a hassle free experience. Real estate agents are highly professional people who can represent your interests very well and make the entire purchase process and the paperwork much easier for you reducing your stress and anxiety. They can give you an expert advice on all your market decisions ,provide you with the best services from their 15 years’ or so experience and at times can even help you negotiate on the table in order to get the best deals. Like they always say it is always better to leave the matter to the expert. An agent can help the buyer find the best house that would fit in their budget and at a much faster speed. So why crib paying some extra cost to someone who will do the entire task for you.


All real estate agents are the same

Another common disbelief is to think that all the property agents are the same and any agent is qualified to help you in the home purchase process. However this is not the truth. The buyer should always ensure that the agent engaged by you has a proper and valid license as the property purchase matters are very important financial decisions and they need an experienced and hardworking person to perform their job with 100% honesty and integrity. Choosing a true, dedicated, honest and qualified agent can even help you save a few thousands of rupees. A professional and well experienced agent can make the entire process smooth and easy and can even educate the buyers and empower them to take the best decision for the good of their family. 


Future value

Buyers often believe that the property purchased by them even years back will always increase in value in the future whereas this is not always true. With the latest construction methods and technology, advancements in architectural designs, the building construction guidelines also keep on changing. The worth of the house in the years to come often depends upon its location, features, facilities, desirability and many such factors. So we cannot say that every time the older the property, the higher in value. Because with the changing times it is quite common that it might not be as per the latest building code and lifestyle trends which will reduce its value. 


Prices of house will be the same the entire year 

Just like the commodity prices keep going up and down depending upon the market variables the same is true for the property value also. So it is always better to consult the agent who can guide you the best when to make the property purchase when budget is also an important factor. 


Hence the above mentioned are just a few of the myths that a prospective home buyers might encounter at the time of buying a home. It is always advisable to take these points into considerations in order to avoid future problems and make the entire process a satisfactory experience and to enjoy your dream home even better.