The real estate industry is growing at a tremendous rate, and there are many myths and misconceptions about this thriving industry. In this article, we will debunk these myths. Let’s get right into it.
Myth 1: Real Estate Lawyers Offer Little Help
The fact is that real estate lawyers do more than just be present to sign paperwork. It usually looks this way when the transaction goes smoothly. However, when there is an issue, you’ll need to discuss your case with a real estate lawyer to find a resolution and maybe get compensation for any wrong the other party might have caused.
The presence of a lawyer during the proceedings is to ensure that nothing goes wrong, and if they do, they can take swift legal action. In fact, you need to appreciate the lawyer more if a deal goes smoothly because it means they’ve done their job so well. A real estate lawyer will ensure that the transaction is not fraudulent, change the property title properly, review the property liens (if there are any), and take legal action if a case arises.
Myth 2: Discover Your Dream Home First; Pre-Approval Can Be Addressed Later
A common mistake people make as a result of this myth is that they find a house first, then go to the bank to get pre-approval. In most cases, they end up discovering that the amount the lender or mortgage broker can lend is not sufficient to purchase the home. You can neglect the pre-approval process and focus on finding the home when you have a substantial amount of money in your bank account that you’ve saved to use as part-payment for your new home.
If that is your situation, then you must do the pre-approval process first, where the lender or mortgage broker will determine the amount, you can borrow and the interest rate on the loan. You can now work with this information when you go house hunting to ensure you don’t inquire about houses you cannot afford. You have about three to four months to secure a home after a pre-approval, which is enough time.
Myth 3: Purchase Price Represents Total Expense
This myth has thrown people into financial difficulties they were totally unprepared for. The purchase price is not the total or final cost. There are other expenses apart from the property’s purchase price, such as legal fees, closing costs, property taxes, insurance, and moving costs, that you’ll have to pay.
These fees cost about a couple of thousand dollars and are crucial to closing the property deal. Until you pay these expenses, you can’t continue with the transaction. Therefore, before you enter a deal, find out what the total expenses entail and not just the purchase price. This will ensure you have the financial capacity to complete the entire deal.
Myth 4: Forego Home Inspection And Financing Terms
If you forego home inspection and end up paying for the house, you don’t have a right to seek repair from the seller. So, pay up the few hundred dollars for the inspection, and then confirm that the house is up to your standard. We recommend you go with a civil engineer, if possible, to help you assess if there is any structural issue.
Real estate is a very competitive market, and it is not strange for potential buyers to make offers without terms or conditions. In other words, they legally commit themselves to purchasing a house on or before the closing date. This is very wrong, and you must have a real estate lawyer guide you through the entire process of purchasing a home.
This costly mistake can become a problem if you end up not having the money to buy the house. The seller can decide to sue you for breaching the terms of the contract. You can read this article to discover the different instances where the seller can sue a buyer.
