6 Myths of Buying a Home

Beware these 'truths' if you are in the market for a house.

FOR MANY first-time homebuyers, owning a home is a dream come true. But oftentimes, they come into the process with some unrealistic expectations and high emotions. If you're looking to buy, don't let your heart control your head. When it comes down to it, a real estate purchase is still a business transaction.

Beware of these myths:

1. "The perfect home is out there." Many buyers tend to focus on the one thing that's wrong with a home rather than the nine out of 10 things that are right. But buying a home is essentially an exercise in compromise. Don't expect to get everything on your wish list. Rather, decide which items are true deal-breakers.

2. "The House has to speak to you." Buyers often get caught up in how the home "feels" or "speaks" to them. But remember, real estate agents and stagers are paid to prepare the home so it evokes pleasant emotions from house hunters. Unless you're buying the furniture that's there, imagine your own belongings and look at the house with a critical eye.

3. "The listing information is always accurate." When it comes to listing sheets and real estate agents, don't take their work for it. If you're looking for specific square footage, bring a tape measure. Count the number of closets, cabinets and electrical outlets in your current home and compare it to homes you are looking at. If the show sheet says "finished basement," verify that it is truly finished.

4. "You should buy as much house as you can get." In real estates heyday, it was normal to see two people living in a 4,000-square-foot, five bedroom home. These days, it doesn't make financial sense. Buy a home based on what you need so you can live comfortably, not excessively.

5. "If your offer was accepted right away, it was too much." Buyer's remorse is common, especially in an uncertain market. But if you were comfortable with the offer you made before you saw the seller's reaction, then there's no point in second-guessing yourself. In any business deal, the goal is to make everyone feel like a winner.

6. "The value of the home will increase." If we learned anything from the housing crisis, it's that homes are not cash cows. Unless you're an experienced flipper, don't expect that $200,000 condo to be worth $300,000 in two years.

ANNALISA BURGOS, senior editor of HGTV's FrontDoor.com; USA WEEKEND, March 18-20, 2011

You can reach me via telephone at 615-777-4663 or email at George.Margrave@MIGOnline.com