Did You Know?

Below are some interesting home buying myths and facts, according to Zillow.

- 42 percent of buyers think that home values appreciate by 7 percent per year. Historically, appreciation has been between 2 and 5 percent per year.

- 56 percent of buyers believe an appraisal determines the home's condition. In fact the appraisal is meant to determine fair market value for the purposes of the bank approving the mortgage or for the buyer to know that they are paying a fair price. An inspection is what details the home's condition.

- 47 percent of buyers believe a home is sold once the purchase and sale contract is signed by both the buyer and the seller. In fact this is only the first step in the closing process. An appraisal must happen (if there is a mortgage. If it is a cash purchase the buyer can choose to forgo the appraisal), as well as an inspection. For instance, if an inspector were to find black mold in the house that was previously undiscovered, the buyers could have the option of backing out of the deal with no penalty. Alternatively, they could negotiate with the seller to have the problem fixed.

- 41 percent of buyers believe they are required to purchased private mortgage insurance (PMI) regardless of the size of their downpayment. But the truth is that only buyers whose down payment is less than 20 percent need to do so.