11 Common Myths About Real Estate That Most Buyers Believe

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There’s a lot of mystery when buying a home, it can feel like diving head first into an ocean of unknowns. You hear advice from everyone — your neighbor, your uncle who bought a house in the 90s, and even that one friend who watches real estate TV shows religiously. These voices can second guess your every decision, but not everything you hear is true and holding on to those myths can cause unrealistic expectations or missed opportunities.

The reality is, real estate is simpler than it looks, but people get misled. Buyers carry many assumptions about buying real estate that do not stand up to scrutiny, from misguided beliefs about market timing to misconceptions about financing. To help you make decisions with more clarity and confidence, let’s bust some of the most common myths.

You Should Wait for “the Perfect Market”

This is one of the most common misconceptions: the feeling that the market has a ‘perfect’ time to buy. Of course, market conditions change, but waiting for prices to hit bottom or interest rates to drop any further is a practice best characterized by the expression, ‘I’ll believe it when I see it.’ It is almost impossible for even seasoned professionals to time the market perfectly, so don’t wait to buy real estate; buy real estate and wait.

It’s Always Better to Buy Than Rent

Buying a home can be great, but it’s not always the golden ticket. For example, some factors such as job stability, lifestyle preferences, and even the local housing market will make renting seem like a better option for some. Investopedia reports that in some high cost cities it may make more financial sense for younger buyers who need time to save for a substantial down payment to rent. This is not about doing what society says you ‘should’ do, but doing what makes sense for you, now.

You Need a 20% Down Payment

Putting down 20% was once thought of as the golden rule, but it just doesn’t have to be that anymore. However, there are plenty of loan programs geared for those with smaller budgets. For instance, FHA loans can get by with only 3.5% down. In reality, almost 40 percent of first time buyers put down less than 10 percent, according to the Mortgage Reports. Waiting to save for the full 20% could mean never getting a chance to buy a home.

The Bigger the House, the Bigger the Investment

Real Estate Agent Showing the Unit to Her Client

Bigger isn’t always better though, which means a sprawling mansion might sound dreamy, but it isn’t always what you need. If you decide to sell though, larger homes mean higher maintenance costs, more taxes and a smaller pool of buyers. It is not all of the time that a massive home in the middle of nowhere appreciates faster than a cozy, well located home. Just because you can, doesn’t mean you should, and do what works for you.

Skipping a Home Inspection Will Save You Money

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When you’re on a tight budget, cutting corners might seem tempting, but skipping a home inspection is a gamble you definitely don’t want to take. Costly issues hidden from the naked eye can be uncovered on inspection. Take for instance a little crack in the foundation that could potentially swell into a large repair bill.

The House Is Yours Because You Have a Pre Approved Loan

It’s not a guarantee, but pre-approval can give you a leg up when making an offer. That doesn’t mean the bank will just give you final approval, however, as it will still look at the property itself, your financial situation, and other factors. Your loan might still flop if the house has appraisal issues or if your credit score dips. Getting preapproval is like getting a ticket to a concert — it doesn’t mean you’ll be front row.

You Have to Pay Your Real Estate Agent Out of Pocket

A Real Estate Agent Discussing a Document to a Man — Image Credit: MART PRODUCTION/ Pexels

This is a big one! Many people looking to buying a home for first time assume they are going to have to pay their agent themselves, but in many cases, the seller pays the real estate commission. This is a good thing as you get the professional help you need without having to pay for it upfront. This can help you take a breath of ease and concentrate on your dream home.

Newer Homes Don’t Require Maintenance

Fixing a Leaky Pipe — Photo Credit: Pexels

While a brand new home may shimmer and gleam, that doesn’t mean it is maintenance free. Appliances break down, systems fail, and yes, even the most modern roofs leak. Always budget for maintenance for a home regardless of its newness.

You Can’t Bargain on New Construction

People Talking to an Agent — Photo Credit: Pexels

For many, buying a new build seems like a fixed price deal, but it’s not. At the end of the fiscal year or quarter, builders often have an incentive to move inventory. Even if the sticker price doesn’t budge, you might be able to negotiate upgrades as simple as hardwood floors or better home appliances. What’s the worst that can happen when you ask? It never hurts to ask.

You Should Solely Rely on Online Home Value Estimates

Zillow and Redfin estimates are a good starting point, but they aren’t gospel. The algorithms these platforms use don’t always take into consideration local factors such as desirability of a neighborhood or recent upgrades. A real estate agent or appraiser who’s skilled can give you a much more accurate picture.

The Best Homes Usually Sell Themselves

Investing in Real Estate — Image Credit: OleksandrPidvalnyi/ Pixabay

Falling in love with a home that ticks every box is easy, but the best properties don’t sell themselves. How quickly a home moves off the market has everything to do with smart marketing, professional staging, and solid pricing strategies. Charm alone may get sellers only so far, as those relying on charm alone may find themselves sitting on their “perfect” home much longer than they expected.

Disclaimer: This list is solely the author’s opinion based on research and publicly available information.