Earlier this week, the Today Show had a segment on the Top Ten Myths. The advice given on the show was extremely valuable and really should be taken into account whether buying or selling a home. I will be reviewing these in separate entries beginning with the top myths believed by Buyers.

Buyer myth #1: The longer a house is on the market, the more you can negotiate. When buyers ask, “How long has this property been on the market?” They think “six months” means they can negotiate the price down. It more often means the seller is stubbornly (not my choice of word) holding on to their price.

Working with both buyers and sellers in this terribly confusing market, I’ve learned that this adage is way off base. The time on market was very much a factor when negotiating a sales price during the boom period. When everything was selling in a matter of weeks if not days, a significant number of days on the market was most definitely an indicator of a home being overpriced.

The current housing inventory is such that many local markets are seeing inventories that exceed six months and actually approach 12 months worth. Buyers are simply being extremely choosy and want a home that is in perfect condition and meets all their criteria. Quite often these folks are passing up on extremely great opportunities simply because the home needs a modicum of work. Those who do recognize the bargain a home that needs work may represent will then try to negotiate too hard and not get the home they want. Avoid getting caught up in the mindset that you have to steal a home. You may ultimately get a great price for a house, but end up with your second or third choice for a home.

I always try to stress the idea that if you strictly want a bargain investment, look to the stock market. There really are some incredible bargains. When looking for a home, first find the home that makes sense for you and the family and then negotiate the best possible price. You typically only end up in your perfect home when there is a win-win type negotiation. Five years from now, you will look back and realize it was well worth that extra two or three percent that it took.

Remember: YOU ARE BUYING A HOME NOT A SHARE OF STOCK.

Of course the above does not necessarily apply when looking for investment property.