5 Biggest Real Estate Myths

Here are the 5 Myths:

1. Sellers today are desperate
2. Don’t buy before prices have bottomed
3. You can’t buy a home unless you have 20% down
4. Now’s the absolute worst time to sell
5. Before you refinance, shop around

Does this apply to real estate in Estes Park?

I am definitely seeing these myths permeating the attitudes of buyers and sellers the local Estes Park real estate market.

1. The majority of sellers in Estes Park are not desperate. In the video, Barbara Corcoran mentions the ratio that 1 in 10 Sellers are “desperate.” However, I would venture to say the ratio is more like 1 in 20 (or more) Sellers in Estes Park because of the large presence of 2nd home and vacation home owners. These people are usually financially capable of waiting for their price. Of course, there are properties available that are more desperate than others. (As a side note, I do keep a running list of distressed homes for sale. Contact me for more details.)
2. Prices in Estes Park are not declining as you can see in my market statistics commentary on this blog. In Estes Park, we are seeing a decrease in demand because people are fearful of prices dropping due to all the negative hype in other markets. I believe there is a lot of pent up demand waiting to buy property. As soon as demand starts to pick up again, I think we are going to see a huge jump in the number of homes sold in the next couple of years.
3. This is also true for Estes Park. While you may get the most favorable terms with 20% down, having less to put down does not eliminate you from buying a home. My recommendation is to talk to a mortgage broker and/or your bank about what programs you may qualify for before ruling out a home purchase.
4. While it may be difficult to sell a property in Estes Park right now, it is not impossible. Buyers are still buying property but they are only looking at property where they know they are “getting a good deal.” The most important thing in this market is to be a better value than your competition. In other words, price your property correctly or you may be waiting a very long time to sell. You need to be the most attractive home at the best price to get any attention from buyers.
5. My opinion is to go ahead and shop around but don’t forget about your current bank when considering a refinance. Be sure to weigh all costs involved including closing costs and other fees. Also be careful about how many inquiries you make that may count against your credit score.

Thanks to Ines Hegedus-Garcia of Miamism.com and Agent Genius Fame for the video. See her original post here.