7 Real Estate Myths That Could Cost You

Don't let age-old beliefs or advice from your uncle's uncle influence your decisions. Unfortunately, some statements can prevent people from making informed choices. In this article, we've put together 7 myths that are outdated and incorrect. Let's get started!

 

Myth 1: It’s Always the Best Time to Buy

The idea that it’s always the best time to buy real estate is a common myth. While we believe there’s no bad time to buy the right property, the timing should align with your personal goals and the current market conditions.

Real estate markets go through cycles with ups and downs. Consider factors like interest rates, the number of homes available, and your own finances. Sometimes, waiting for a more favorable market can save you money or provide better investment opportunities.

 

Myth 2: You Need a 20% Down Payment to Buy a Home

Another common myth is that you need a 20% down payment to buy a home. While putting down 20% can help you avoid extra fees and get better loan terms, it's not a must for everyone. Today, many buyers put down just 3-5%.

There are different loan programs to fit different financial situations. For example, FHA loans allow for down payments as low as 3.5%, and some conventional loans need even less. The key is to understand your options and talk to a good mortgage advisor.

 

Myth 3: Real Estate Investments Always Go Up in Value

Many people think that real estate always goes up in value. While real estate can be a great investment, it's important to know that the market can go up and down. Things like the economy, interest rates, and local market trends all affect property values.

Typically, real estate tends to increase in value over the long run, but it's not a quick way to make money. Be ready to hold onto your property for at least 7 years to see real growth. Markets can dip, and being patient is often the key to seeing a good return on your investment.

 

Myth 4: Online Resources Are Enough to Find a Home

While online resources are useful for finding a home, they don't provide the full picture. Most properties are listed online, but there's also a significant portion of off-market listings that only licensed agents have access to. Additionally, these websites lack the "boots on the ground" knowledge that a local real estate expert offers. Unlike online platforms, a knowledgeable agent understands the nuances of the local market and can provide insights that go beyond what you see on the screen.

 

Myth 5: The Highest Offer Always Wins the House

Many people believe that the highest offer always wins the house, but that's not necessarily true. Sellers consider more than just the price when reviewing offers. Your real estate agent can help you craft a competitive offer that includes favorable contingencies, a closing date that fits the seller's plans, and other crucial details.

A personal touch and strong networking can also play a significant role. A well-rounded offer, which considers the seller's needs and preferences, can often be more appealing than a higher offer that's not as thoughtful. So, while a high offer is important, working with an agent to create a well-balanced offer can greatly boost your chances of securing the home.

 

Myth 6: Selling Your Home FSBO (For Sale By Owner) Will Save You Money

Some people think selling a home without an agent saves money on commission. However, in 2024, homes sold with an agent had a median price of about $330,000, while those sold by the owner (FSBO) had a median price of $225,000. Plus, if you sell on your own, you'll be in charge of everything—setting the price, marketing the home, showing it, negotiating with buyers, and handling all the paperwork.

An agent helps set the right price, negotiates offers, and connects you with serious buyers. Plus, they have industry connections for photography, financing, and more. Selling a home is a big job—consider if it’s worth doing on your own. A good REALTOR® can make the process smoother and more profitable.

 

Myth 7: When Selling, It’s Best to Price Higher

Some believe it's best to price a home higher than its market value when selling. But pricing too high can scare off buyers and keep your property on the market for too long. Overpriced homes often end up being discounted, which can make people think something is wrong with the property.

On the other hand, pricing your home a bit below market value can attract more buyers and create competition. This can lead to multiple offers and a higher final sale price. Work with an experienced real estate agent to set the right price based on the market and similar homes.

 

"Real Estate Agents Will Say Anything to Make a Sale":

Real estate, like many fields, has its share of misleading information. While there might be some truth to these myths, they don't apply to every situation. One big myth is that "Real Estate Agents Will Say Anything to Make a Sale." In reality, a great agent focuses on what's best for you. Their success relies on helping you achieve your goals and getting referrals from satisfied clients. For honest advice and to see how we can assist you, schedule a free consultation today. Let’s work together to make your real estate journey a success!

 

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