11 Real Estate Myths That Cost Buyers and Sellers Thousands

11 Real Estate Lies That Keep Buyers and Sellers Stuck

Every October, everyone’s talking about haunted houses. But the real ghosts are the myths floating around this market. They’ve been haunting buyers and sellers for years. Time to bury them for good.

Let’s get to it.

Myth #1: You need 20% down to buy a home.

Truth: That’s outdated. You don’t need 20% down, and waiting to save it could cost you more in higher prices or rates.

In reality, most buyers today put down far less. The median down payment for first timers is around 9%. Depending on the loan, you can buy with 3 to 5 percent or even less.

Just know that anything under 20 percent usually means you’ll pay PMI, but that’s often cheaper than waiting years to buy.

Myth #2: Fall is a bad time to list.

Truth: Serious buyers do not take seasons off.

Fall listings often grab more attention because there’s less competition. Homes look great in autumn light, and motivated buyers want to close before the holidays. If you’re thinking of selling in East Tennessee, this could be your window.

Myth #3: Price high and negotiate down.

Truth: Overpricing kills momentum.

When you start too high, you sit too long. Days on market climb, buyers assume something’s wrong, and your leverage disappears. In East Tennessee, well priced homes sell faster and attract stronger offers.

Myth #4: Wait for rates to drop to 5 percent.

Truth: No one can time this market.

If you wait for the perfect rate, you might miss the perfect home. Rates haven’t hit the 5s in years, and most pros don’t see that changing soon. Focus on the payment and the property, not the headlines.

Myth #5: You can’t buy with bad credit.

Truth: You can with the right plan.

Conventional loans usually start around 620 credit scores. FHA loans can go as low as 500 with 10 percent down. I’ve helped plenty of buyers in East Tennessee qualify once they knew their options and worked with a smart lender.

Myth #6: Online home values are just as good as an agent’s.

Truth: Algorithms can’t smell your upgrades or see your view.

Those online estimates are based on averages, not your home’s reality. A local agent uses real comps, buyer trends, and strategy, not code, to get your price right. In East Tennessee, that local insight matters, especially with low inventory.

Myth #7: Renting is smarter than buying.

Truth: Depends on your goals, but long term, ownership wins.

Renting can make sense short term. But homeowners build equity. The typical homeowner’s net worth is around $430,000. Renters are under $10,000. That gap speaks for itself.

Myth #8: The lowest rate is the best deal.

Truth: The lowest rate isn’t always the lowest cost.

Look at the full loan terms, points, fees, and APR, not just the headline rate. Sometimes that cheap loan ends up costing you more.

Myth #9: We’re heading for another 2008 crash.

Truth: Today’s market isn’t built the same.

Back then it was bad loans and zero equity. Now, lending is stricter, homeowners have record equity, and supply is tight. In East Tennessee, prices have adjusted, not collapsed.

Myth #10: Preapproval and prequalification are the same thing.

Truth: They’re not even close.

Prequalification is just a guess. Preapproval is verified credit, income, debt, the works. That’s what gives you buying power and gets your offer taken seriously.

Here’s the breakdown:

• Prequal: Quick chat, no docs, ballpark estimate.

• Preapproval: Verified docs, hard credit check, lender reviewed.

With Josh Rogers, preapproval usually takes 24 hours once you submit documents.

Bring: last 2 pay stubs, last 2 W 2s or 2 years of tax returns if self employed, 2 months of bank statements, ID, and debt details.

Pro tip for East Tennessee: Some listings won’t even let you tour without proof of funds or preapproval. Get that done early.

Myth #11: Student loans kill your chances.

Truth: They don’t. They just factor into your debt to income ratio.

Plenty of buyers qualify with student loans. The key is knowing your numbers and getting preapproved early so you can see exactly where you stand.

Bonus Myth: You don’t need an agent in a hot market.

Truth: You need one more than ever.

The right agent protects your money, negotiates your leverage, and keeps you out of legal trouble. Think of your agent as your flashlight in a haunted maze, guiding you out, not adding to the confusion.

Real estate myths make great stories, but they don’t make smart moves. If you’ve been sitting on the sidelines because of bad info, let’s talk about what’s real in East Tennessee.