There are many common myths about the Boise real estate market.
Here are 6 common Boise real estate myths I hear frequently.
1) Buyers Need 20% Down
That’s simply not true in the Boise real estate market.
There are loan programs with zero down payment, 3.5% down payment, 5% down payment, 10% down payment (and others) available to qualified borrowers.
2) Interest Rates Are High
While interest rates are higher than they were during “the bottom”, they are not historically-high.
In fact, they are dead cheap when compared to what I’ve experienced throughout most of my 42 years in real estate!
Current rates for a 30-year fixed rate mortgage are around 4.25% in the Boise real estate market.
One of my first-time buyers locked his loan at 3.75% last week with a 30-year IHFA-FHA loan.
15-year rates are even lower.
3) Buyers Need Perfect Credit
It’s true that borrowers need decent credit to get a mortgage these days.
But, you don’t have to have a 800 FICO score to get a loan.
Don’t assume that your credit is inadequate (unless it’s really, really bad!) and talk with a lender to see if you can qualify for a loan.
If you need a good lender, call me at (208)938-5533 for my recommended local lender who can pre-approve you on the phone.
4) Renting Is Cheaper Than Buying
This is a very dubious statement, given today’s low interest rates and strong rental market.
Most home payments are less than renting an equivalent home.
When you rent, your monthly rent is paying your landlord’s mortgage payment.
If you rent for 30 years, you bought a home for your landlord(s).
5) Buying A FSBO Is Better
There are many reasons some sellers avoid using a Realtor® to sell their home.
The most obvious one is that they don’t want to pay a commission.
Another reason is that they think their home is worth more than the value recommended by a Realtor®.
Yet another one is that they don’t think they need the professional guidance of a Realtor® for their complex real estate transaction.
Combine those three reasons and you have a recipe for a very interesting transaction if you’re the buyer.
Other issues include both buyer and seller thinking they’re saving the commission, and neither buyer nor seller knowing how to get through the transaction while complying with legal requirements.
6) You Don’t Need A Home Inspection
This is yet another real estate myth.
Trust me, you do need a home inspection!
I have seen brand-new homes with issues revealed by a home inspection.
And, I have seen common issues discovered in home after home throughout the Boise real estate market.
A home inspection, completed by a competent home inspector, is one of the biggest bargains in real estate.