The real estate market is full of myths that can lead to costly mistakes. Whether you’re buying, selling, or investing in property, falling for bad advice can waste time and money. Let’s break down five of the most common real estate myths—so you don’t get caught in a financial trap.
1. Myth: You Should Overprice Your Home to Leave Room for Negotiation
Reality: Overpricing often leads to your home sitting on the market longer and eventually selling for less.
Many sellers believe that listing their home above market value gives them more bargaining power. But in reality, overpricing can turn away potential buyers before they even schedule a showing. Buyers today have access to online tools and market data—they know when a home is overpriced.
If a house sits on the market for too long, it raises red flags. Buyers assume something is wrong with the property, leading to lowball offers or price cuts that could have been avoided.
What to Do Instead:
- Price your home based on recent comparable sales in your area.
- Work with a real estate agent who understands market trends.
- If you don’t get offers in the first few weeks, consider adjusting your price sooner rather than later.
2. Myth: You Can Save Thousands by Selling Your Home Without an Agent (FSBO)
Reality: FSBO (For Sale By Owner) homes often sell for less and take longer to sell.
Some sellers think skipping a real estate agent means keeping more money in their pocket. While it’s true that you won’t have to pay a commission, selling a home involves marketing, negotiations, legal paperwork, and pricing strategy. If you don’t have experience, you could end up selling below market value.
Homes sold by agents typically sell for more than FSBO homes, even after paying commissions. A good agent can:
- Attract more qualified buyers through targeted marketing.
- Negotiate better deals based on market conditions.
- Handle the legal and contractual details that can trip up inexperienced sellers.
What to Do Instead:
- If you want to save on commission, consider a discount brokerage or a flat-fee MLS service.
- If you go FSBO, hire a real estate attorney to review contracts and ensure a smooth closing.
3. Myth: Spring Is Always the Best Time to Buy a Home
Reality: While spring is busy, it’s also the most competitive and expensive time to buy.
It’s true that the housing market heats up in the spring, with more homes hitting the market. But more buyers also enter the market, leading to bidding wars and higher prices. If you’re looking for a deal, spring may not be the best season to buy.
During fall and winter, fewer buyers are shopping, which means less competition and motivated sellers. You might be able to negotiate a better price, closing costs, or upgrades.
What to Do Instead:
- If you’re looking for the best price, consider shopping in the late fall or winter.
- If you need more choices, spring and summer will have the most inventory, but expect to pay closer to asking price (or more).
4. Myth: You Need a 20% Down Payment to Buy a Home
Reality: You can buy a home with as little as 3-5% down—or even 0% in some cases.
A lot of first-time buyers think they need to save for years to afford a home. While a 20% down payment helps avoid private mortgage insurance (PMI), it’s not required for most loans.
There are plenty of low down payment programs available, including:
✅ FHA Loans – As little as 3.5% down.
✅ Conventional Loans – Some require just 3% down with good credit.
✅ VA & USDA Loans – 0% down for eligible buyers.
What to Do Instead:
- Research first-time homebuyer programs that offer down payment assistance.
- Work with a lender to find a mortgage that fits your budget and credit score.
- If you can’t afford 20%, focus on getting the best interest rate and avoiding unnecessary debt.
5. Myth: If a Home Passes Inspection, It’s in Perfect Condition
Reality: Home inspections don’t catch everything, and issues can still arise after closing.
A home inspection is a critical step in the buying process, but it’s not a guarantee that everything is in perfect shape. Inspectors check for major issues (roof, plumbing, HVAC, foundation), but they don’t test everything.
Some hidden problems that a standard inspection might miss:
🔹 Mold and asbestos inside walls
🔹 Electrical issues in older homes
🔹 Pest infestations (like termites)
🔹 Sewer line problems
What to Do Instead:
- Always attend the home inspection and ask questions.
- If you have concerns, get specialized inspections (e.g., mold, pests, or sewer line scope).
- Budget for future repairs—even if the inspection report looks good.
Final Thoughts
Believing in real estate myths can cost you thousands of dollars. Whether you’re buying or selling, doing your research and working with experienced professionals can save you time, money, and headaches.
If you want to make smarter real estate moves, Yowzzer.com connects buyers and sellers with top agents—while offering rewards at closing!
