When it comes to homebuying in New Orleans, or anywhere for that matter, there are some things that every homebuyer thinks are true! (OK, maybe not EVERY one of them – but it’s a lot of them!) Here are five facts that we think most buyers believe to their core!
#1: That sellers HAVE to sell
Homebuyers are under the impression that a seller has to sell their home. In turn, these buyers think they always have the upper hand. However, many sellers don’t need to sell. Many can afford to sit on those properties, hoping to get their desired price.
If the seller has moved and already purchased another home, this is your sign that they most likely have the cash to afford both homes. If the property is a succession property, the sellers often don’t feel motivated to sell quickly either.
There are many facets to this, but don’t ever assume a home seller must expedite their home sale!
#2: That you have to put 20% down on a home purchase
This common homebuying myth just won’t go away! You do not need 20% of the purchase price for a down payment. There are 100% financing options. There are options to put down as little as 3%, 3.5%, 5%, 10%, etc.
Don’t let the idea of coming up with tons of cash scare you from homebuying!
#3: Bigger is always better
When it comes to home sizes, bigger is NOT always better. We know your mom told you that more square footage means you get a bigger return on your investment later. But this just isn’t true.
We have often found that 5-bedroom homes are some of the hardest to sell in the New Orleans area! While a 2-bedroom home will find a new owner very quickly.
Buy the house that fits your lifestyle, and don’t worry about getting a McMansion for no reason!
#4: Real estate always appreciates
Many homebuyers believe that real estate properties will always increase in value. (Probably because every real estate agent has told them that!) While real estate can be a good long-term investment, it’s not guaranteed that property values will consistently rise.
Local market conditions, economic factors, and property location can all influence whether a property appreciates or depreciates in value.
And while we want to help you make the best choices regarding your home purchase, we don’t hold a crystal ball and can’t predict the future!
#5: The seller has to repair everything from inspections/pay for your upgrades
Home inspections become very tricky when it comes to asking for repairs. Many of our home buyers think the seller should make every repair that comes up on this inspection report. The reality is that the seller is likely to do very little. Unless we find items of health and safety concerns or major mechanical items not working, the seller is unlikely to agree to make repairs on everything uncovered.
While we are on this note, the seller is also not paying for your upgrades. If the AC is 15 years old but still working properly – sellers will not replace this item for you.
If you need every little item checked off, you should likely look for a newly built home!
While no house is perfect, and the homebuying process can be a wild ride – we always like to prep our homebuyers on what the expect. We are here to walk you through this process!
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