When is your new home on the Outer Banks actually YOURS?

Home buying and selling on the Outer Banks can be tricky, especially when there are so many myth, urban legends, half-truths and un-truths flying around by many well-meaning folks.

Once people find out you are either buying and selling a home on the Outer Banks, suddenly everyone becomes an expert in real estate and want to give you advise on what you should do. It amazes me how a person who is very learned and educated in their own profession, suddenly becomes a real estate professional when they find out you’re buying or selling.

However, as well meaning as they are, they aren’t professionals in the Real Estate business. Truth is, it takes years of dedication, education and experience to become a professional real estate agent.

Here are a few home buying Myths I would like to bust for you

Property appreciation: Zillow reported that approximately 42% of home buyers believe the home they purchase will appreciate by 7% each year they own it. Truth is, historically, values in a normal real estate market only increase by 2 to 5% each year.

PMI (Private Mortgage Insurance): 41% of homebuyers believe they have to purchase Private Mortgage Insurance no matter how much they put down for their down payment. Truth is PMI is only required when a down payment at purchase time is less than 20%. Another fallacy many become confused on is that PMI protects the banks from your default on the loan. It doesn’t protect you in any way. Purchasing PMI insurance is you betting you’re going to walk away from your responsibilities of your loan.

Appraisals: Many buyers think an appraisal is like a home inspection. And it is not. You are paying for someone to document you are paying what you should for your home. HOWEVER, FHA/VA /Rural Development loans will also report the condition of the house and make requirements for repair, but that still is not an home inspection. Additionally, an appraisal may turn up questionable condition in the property, but again, that is for the bank information so they know the property they are securing for you will not come back on them unsaleable.

Home owner’s Insurance: Contrary to popular belief, having insurance on your home is required by your lender. Period. If there is a lapse in your coverage, you will be getting a call from your lender.

Ownership: When you do actually “own” your home? Zillow found out that 47% of homebuyers think they “own” their new home right after the purchase contract is signed. However, that signed agreement is just that – an agreement to purchase and is actually the start of the closing process. A sale is never final until the documentation is filed at the recorder’s office of the county it in. So much can happen and sometimes does before the closing and filing of the paperwork.

This is a small sampling why you need to work with a real estate professional. Contact me today –  I will help you understand and go through the process of buying or selling your home.