Real Estate Myths Buyers Still Believe

Separating Fact from Fiction in Today’s Market

Even with endless information online, real estate myths continue to influence buyers—especially first-timers. Some of these misconceptions can lead to poor decisions, missed opportunities, or unnecessary stress during the homebuying process.

Let’s break down the most common real estate myths buyers still believe—and what the truth really is.

1. You Need 20% Down to Buy a Home

The myth: You must have a 20% down payment or you can’t buy.The truth: Many buyers secure a home with as little as 3% to 5% down (or 0% for VA or USDA loans). While 20% can help you avoid private mortgage insurance (PMI), it’s not a requirement.

Smart move: Talk to a lender early to explore all your loan options and down payment programs.

2. The First Step Is House Hunting

The myth: Start browsing homes first—then talk to a lender later.The truth: Your first step should be getting pre-approved for a mortgage. This tells you how much you can afford, strengthens your offer, and saves time.

Smart move: Get pre-approved before booking showings or falling in love with a home you can’t afford.

3. You Can’t Buy a Home with Student Loan Debt

The myth: Student loans automatically disqualify you from buying a home.The truth: Lenders consider your debt-to-income ratio, not just the existence of student debt. If your overall finances are strong, you can still qualify.

Smart move: Don’t assume you’re disqualified—get a lender to review your financial picture.

4. The Asking Price Is What You Pay

The myth: The list price is the final price.The truth: In a competitive market, homes often sell above asking. In slower markets, you may be able to negotiate below list price. The asking price is just a starting point.

Smart move: Trust your agent to analyze comps and guide your offer strategy.

5. You Should Always Wait for Rates to Drop

The myth: You should wait until interest rates go down before buying.The truth: While lower rates help, timing the market is tricky. Rates could drop—or prices could rise, canceling out any savings. If you find the right home and can afford it, waiting might cost more in the long run.

Smart move: Focus on affordability and long-term plans, not just rates.

6. A Home Inspection Guarantees the House Is Perfect

The myth: If a home passes inspection, it’s problem-free.The truth: A home inspection helps uncover visible issues, but it’s not a warranty. Hidden problems may still exist, and inspectors can’t see inside walls or underground.

Smart move: Review the report carefully, ask questions, and budget for ongoing maintenance.

7. New Homes Don’t Need Inspections

The myth: A newly built home is flawless—skip the inspection.The truth: Even brand-new homes can have issues due to rushed construction or missed details. A professional inspection can reveal plumbing, wiring, or installation errors.

Smart move: Always get a home inspection—new or old.

Final Thoughts

Real estate decisions should be based on facts, not outdated assumptions. By understanding the truth behind these common myths, you’ll be in a stronger position to buy confidently and avoid costly mistakes.