7 Common Real Estate Myths That Could Cost You Money — Debunked!

by Julissa Rengifo

The real estate market is one of the most talked-about topics — at dinner tables, on social media, and in the news. But with all that chatter comes a lot of misinformation.

If you’re thinking of buying, selling, or investing, it’s essential to separate fact from fiction. Falling for outdated or incorrect real estate myths can lead to missed opportunities, poor decisions, and even losing money.

Let’s clear the air! Here are 7 of the most common real estate myths — debunked by industry facts and experience.

Myth #1: You Should Wait for the “Perfect Time” to Buy or Sell

Many people believe they should try to "time the market" perfectly. But the truth? There is no universally perfect time to buy or sell real estate.

Reality: The best time is when you are personally ready — financially, emotionally, and logistically. Trying to predict market highs and lows is nearly impossible, even for experts. Instead, focus on your needs, long-term goals, and local market trends.

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

This is one of the most common misconceptions, especially among first-time buyers.

Reality: While putting 20% down can help you avoid private mortgage insurance (PMI), it’s not required. Many loan programs offer options with much lower down payments, including:

✔ FHA loans with as little as 3.5% down
✔ VA loans with 0% down for eligible veterans
✔ Conventional loans with down payments as low as 3-5%
✔ Local first-time buyer programs with down payment assistance

Waiting to save 20% could delay your dream of homeownership by years — unnecessarily.

Myth #3: You Don’t Need a Real Estate Agent to Buy or Sell

With so many online platforms, some believe they can handle a transaction without professional help.

Reality: Buying or selling real estate is complex. A skilled agent provides:

✔ Market expertise and price guidance
✔ Access to off-market or pre-market listings
✔ Negotiation skills to protect your interests
✔ Assistance with contracts, inspections, and closing

An experienced agent can save you time, stress, and money — and in many cases, a good agent will more than pay for themselves by negotiating better terms or prices.

Myth #4: Selling Your Home “As-Is” Means No Repairs or Inspections

While you can list a home as-is, that doesn’t automatically exempt you from inspections or potential negotiations after offers come in.

Reality: Buyers may still request inspections, and major issues can affect your home’s marketability or price. Being upfront and transparent about the property condition can actually help the process go more smoothly and attract serious buyers.

Myth #5: You Should Price Your Home Higher to Leave Room for Negotiation

It sounds logical — aim high so you have space to negotiate down, right? Not quite.

Reality: Overpricing often backfires. Homes that are priced too high sit on the market longer, making them appear undesirable. You may eventually have to reduce the price, often to below market value, just to attract buyers.

The right pricing strategy creates immediate interest and can even lead to multiple offers, putting you in a stronger negotiating position.

Myth #6: All Real Estate Markets Are the Same

Some people assume national headlines reflect their local market, but real estate is hyper-local.

Reality: Every city, neighborhood, and price point reacts differently to economic conditions. For example, while prices may cool in one area, another might experience increased demand and rising values.

That’s why working with a local expert is so important — they understand the nuances of your specific market, not just the national news.

Myth #7: Renting is Always Cheaper Than Owning

While renting can sometimes have lower upfront costs, over the long term, homeownership often proves more affordable and financially beneficial.

Reality: With a fixed-rate mortgage, your payments remain stable, while rent typically increases year after year. Plus, homeowners build equity, gain tax advantages, and benefit from property appreciation — all of which renters miss out on.

Final Thoughts: Knowledge is Power in Real Estate

Don’t let real estate myths hold you back from making smart, confident decisions. Whether you're buying your first home, selling a property, or exploring investments, having accurate information — and the right team — is your biggest advantage.