Myths and Scams - Oro Valley Homes for Sale
Oro Valley Homes for Sale, Oro Valley Real Estate in Oro Valley Arizona AZ. Search Oro Valley Homes and Real Estate, Oro Valley Realtor Ian Taylor
Myth: Buy the worst house in the best neighborhood
In the most affluent neighborhoods, the worst house is actually likely to appreciate more slowly than the houses around it. In essence, not only is the myth not true, when it comes to the nicest neighborhoods, it’s the exact opposite of true. The worst house in the best neighborhood is the worst investment.
Myth: If you want a screaming deal, buy a foreclosure
Foreclosures frequently sell for less than other homes. When people are in financial crisis, chances are good that they aren’t keeping up with basic maintenance. In addition to issues of neglect, some homeowners facing foreclosure actually vandalize the home and take out copper piping, appliances and anything else they might be able to sell. Add to that the fact that banks don’t have the same disclosure obligations as traditional homeowners.
Myth: Real estate is a terrible investment
Over most long periods, stocks perform at almost twice the rate of residential real estate. But you can’t live in your stock portfolio. Buying a home probably means taking out a mortgage. Not only does that bring tax benefits, but it allows you to leverage your down payment to make a bigger investment. If you have $100,000 to invest in stocks, you can buy $100,000 worth of stock. But if you take that same $100,000 and invest it in a home at 20 percent down, you can buy $500,000 worth of real estate.
We Buy Homes Scams?
Home sellers who choose to sell directly to an iBuyer often end up paying higher fees than if they sold the traditional way with a real estate agent.
iBuyers provide instant cash offers and quick closings.
But how profitable is it for sellers who choose this expedited route to a sale?
Researchers estimate that sellers end up paying between 13% to 15% more when working with iBuyers. The percentage reflects differences in traditional real estate agency fees, as well as an allowance iBuyers often request for repairs and an additional 3% to 5% to cover the iBuyer’s liquidity risks and carrying costs. Most iBuyers will inspect the home, assess a generous home repair allowance, and negotiate (an additional) credit to handle such repairs.
The report also notes that the iBuying model could make properties vulnerable to several financial risks, such as the use of automated valuation models that could inflate property values. Also, properties remain empty while in the possession of iBuyers, which could make the homes vulnerable to theft and other criminal activity.
For some sellers needing to move or requiring quick extraction of equity, make these services worthwhile,” “But what percentage of the market will want this service remains to be seen.”