This morning Barbara Corcoran was on the Today Show to discuss the “Five Biggest Real Estate Myths” and in a nutshell here they are as well as the video: (H/T to Matt Wilkins)
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- Sellers today are desperate – The reality is that only about 1 in 10 sellers is actually desperate and that as a buyer instead of focusing on a getting a great deal you should focus on why the seller is selling (i.e. motivation). Warning To Sellers - This is why a good agent will advise you to be absent during showings and not discuss anything as to your reason for selling. NEVER DISCUSS MOTIVATION!
- You are stupid to purchase before the bottom – Generally things take a longtime to unwind but once they turn around, the turn around is quick and it will be too late with prices rising after many people starting to jump back in.
- You cannot buy unless you have a 20% downpayment - Buyer’s can go with a FHA Mortgage and have as little as 3.5% for the down payment. The buyer could ask the seller to pay the closing cost. You will need mortgage insurance which will run about 1.5%.
- Now is the worst time to sell - Many area have already turned the corner. Back in November we pointed out that Montclair was identified as one of the best suburbs in the country if you had to sell a home by Fortune Magazine based on information provided by Altos Research. (Make sure to check out our market stats page)
- Before you refinance you should shop around - Check with your current lender since this is most likely where you will get the best deal since they don’t want to lose your business and the closing cost will be less.
Activity seems to be picking up in the area over the last few weeks hopefully this is a good sign of things to come. We would love to hear your opinion. Please leave us comment and let us know your thoughts
