The purchase of a piece of real estate can be a major transaction for most people. Sadly, individuals that have limited experience with these transactions may have a much more difficult time making informed choices during this transaction. This can be particularly true when individuals are under the impression that common misconceptions about this process are true, but learning the reality about these two real estate buying myths will help you to be better prepared to make this purchase.
Myth: It Will Be Extremely Expensive To Hire A Real Estate Agent
A real estate agent can provide you with invaluable support throughout this process. As an example, the agent will be able to help you narrow your search to properties that already meet some of your key criteria. Also, these professionals can help with negotiating with the seller of the property. This can involve helping you decide on a strong opening offer and informing the seller of your purchase offer.
For those that are concerned about the costs of hiring this type of representative, it should be noted that these professionals often work on a commission basis. Furthermore, it is common for the seller to be responsible for paying this commission.
Myth: Title Insurance Will Only Be A Formality
It can be common for individuals buying a home to want to save any money they can. As a result, some individuals might make the mistake of attempting to avoid purchasing title insurance for their new property. While title insurance can be somewhat expensive, it can prove invaluable if the title to the property turns out to be contested.
A lien on the property can be one of the more common issues that can be encountered. When you purchase property that has a lien on it, you will be responsible for paying the debts of a previous owner where the property was used as collateral. Failure to pay this debt can result in the government foreclosing the property to pay off this debt. By investing in title insurance, you will be protected if it is discovered that a lien is present after you purchase the title insurance. When a title insurance policy is purchased, the insurance company will thoroughly review the history of the property to make sure that it has a clear title.
When you are buying a piece of real estate, it is important to understand that hiring a real estate agent will not be expensive if you are the buyer and the importance of having a title insurance policy. Understanding these two facts will help you to ensure that this purchase goes as smoothly and stress-free as possible.