Buyer and Seller Real Estate Myths

Paul Jamison of the Jamison Family of Companies speaks with Sandy Dickinson of Cross Country Mortgage and Christopher Rivers from Norwood, Armstrong & Stokes, PLLC about market optimism, buyer and seller myths, and the Corporate Transparency Act.

Market Optimism

Since December 2023, the real estate market (especially in Charlotte, NC) has increased in activity. Paul is predicting that sometime in 2024, mortgage rates will decline. This being an election year, he also believes that political candidates will make economic promises, thereby increasing consumer confidence in housing, among other things.

Buyer and Seller Myths

Following are some myths that sellers and buyers tend to believe that may be stopping them from making a move in today’s challenging real estate market:

Seller Myths

• With inventory so low, I will never find a home to buy.

WRONG!  It just takes a little strategy and planning. Investigate utilizing a bridge loan to buy a new home without selling your current one. Maybe you’re curious about a different part of town, or lakefront living, or center city living? Consider selling your home now and find a short term Airbnb, VRBO, etc. You have power and full control over your destiny when you have money in the bank.

• With mortgage rates so high, I should wait until rates go down before I sell, otherwise there will not be enough buyers.

WRONG! Demand is still very high and there are still bidding wars going on locally. Homes may not be selling in mere days, but they are still selling fast.  

• I don’t want to lose my current low rate if I have to buy a new house at a higher rate.

WRONG! You can always refinance or recast your loan. Or, you can keep your current  house and turn it into an investment property (rent it).

• I don’t want to fix anything in my house, I’ll let the buyer fix it.

WRONG! If you want top dollar for your home, make it look as good as possible. Fix what needs to be fixed, and make it look as move-in-ready as possible. If you can’t afford to do repairs and upgrades, then, at the very least, get quotes and provide estimates. That way, buyers can see what it costs to fix or upgrade what they may want to change.

Buyer Myths

• I need to wait until rates go down before I buy.

WRONG! If you wait, prices are going to go up, and you will end up paying more.

• I want to offer much lower than the asking price.

WRONG! With all the recent real estate activity, there should be accurate comps available, and homes should be priced fairly from the start. If the home has been sitting on the market for a few weeks or longer, you may be able to offer a little under asking price.

• I want the seller to pay my points and loan costs.

WRONG! You may find a seller willing to do that, but they won’t also entertain a lower price

• I need the seller to fix everything wrong with the house.

WRONG! The seller doesn’t need to fix everything on the home inspection report. They should fix the items that are broken, so that everything is in working order. But they are not obligated to address every item on the report.

The biggest objection myth on both the buyer and the seller side is mortgage rates. You’re never stuck in a loan, as you can always refinance. Some lenders may even waive fees if you refinance with them at a later date.

Corporate Transparency Act of 2021

The FBI and other federal and state law enforcement agencies have put together a plan to investigate financial crimes in LLCs in the U.S. There is now a federal policy to identify and track the beneficial owner of each LLC in the U.S. A beneficial owner is one who owns at least 25% of an LLC, and who is personally responsible for activities of the LLC. Real estate is often owned by entities, trusts, or LLCs, not individuals. This law would require the company owner to provide a photo ID to show proof of an actual individual behind each LLC once per year for any investigative or litigation purposes.

We’re to Help!

To discuss property management, property investment, property maintenance, selling, buying, the local real estate market, and all things real estate related, contact the expert team of trusted advisors at Jamison Realty at (704) 846-3663. To learn more about property investment in particular, purchase Paul’s book, Opportunity is Knocking, which is chock full of information and tips to get every new investor well on their way to success.

We will be with you every step of the way. Also, listen to Your Real Estate Today radio show every Saturday afternoon on WBT for fun and interesting real estate information and special guests!