When entering the real estate market, many people have preconceived notions about purchasing a home. Some Texas buyers may have a misconception or two about how the process works, or what the benefits and pitfalls of certain moves might be. Here are some of the common misconceptions that are worth clearing up when entering the real estate market for the first time.
Misconception #1: Working with a real estate agents is an added expense
Some buyers may avoid working with a realtor out of fear that there will be a bill later. But, there is good news for buyers here. Realtors receive pay based on commission from the sale of the property, which means only the seller will see a cost for those services. Although buyers do not foot the bill, realtors are legally bound to work in their best interest, so the value to working with one can be quite high.
Misconception #2: It is better to go in with no conditions
In a competitive real estate market, many people are opting to limit the conditions on their offer to make it more attractive to sellers. While there is a time and a place for that tactic, it is not always the smartest move. This is especially true for financing conditions; banks may value a property at less than the sale price, leaving a buyer short on mortgage funds and open to potential legal action or a retained deposit for not following through.
Misconception #3: The property always goes to the highest bidder
While the amount of money on the table is certainly an important aspect of a real estate offer, there are other things sellers may consider. Real estate buying and selling is a negotiation, and issues like the possession date, home inspection conditions, and any number of factors could be considered in evaluating bids.
It is a good idea for new buyers to speak to those who have purchased Texas real estate in the recent past to get a better idea of what to expect out of the process. A real estate agent is also an important resource. Finally, it can prove invaluable to involve a real estate lawyer in the buying process, especially when it comes to finalizing the deal and ensuring everything is transferred accordingly.