3 long-held real estate myths that need busting

With the spring market finally heating up in Middle Tennessee, it’s an exciting time to be in real estate. The Birthright Title team knows we work with some of the most knowledgeable and caring industry professionals around, so we wanted to devote this blog to something that’s been on our minds a lot lately: the myths our buyers and sellers may think are true.

While we won’t delve into the NAR settlement in this piece, the recent headlines from that certainly got us thinking about this topic. Why? Our buyers and sellers rely on our expertise and knowledge to guide them to their home sweet home, and that’s a responsibility all of us in real estate should take seriously.

After all, if you want to offer your clients the best service possible, it’s essential to know what myths they may take to heart. And to all the potential buyers and sellers out there, please know that our team, plus our great Realtor and loan officer friends, are always here to help you separate facts from fiction when it comes to buying or selling property in our area.

Myth 1: A 20% down payment is required.

The belief that a 20% down payment is a strict prerequisite for buying a home is a notorious myth. Many loan programs allow buyers to secure a property with as little as 3.5% or even a 0% down payment (like FHA and VA loans, respectively). You can guide buyers towards these options, ensuring their dream homes remain within reach without the need for piles of cash upfront. In fact, the average down payment was 7% for first-time homebuyers and 17% for repeat buyers in 2021.

Myth 2: Finding your dream home comes first.

Contrary to popular belief, locating your dream home should not be the initial step in your homebuying journey. While real estate lovers may constantly search Zillow for fun, when you’re truly ready to buy a home, the first step is to get your finances in order and secure mortgage pre-approval. This can be a complicated and stressful process, especially for first-time buyers, but it will be worth it to simplify the process from the outset.

Myth 3: Price high as the seller and bid low as the buyer.

In the contentious arena of pricing and bidding, the myths of “always price high” or “always bid low” ahead of negotiations can be detrimental. An excessively high listing price can alienate potential buyers, leaving your property lingering on the market. Conversely, an insultingly low bid can antagonize sellers, potentially severing a negotiation from the start. Relatedly, even when it’s a seller’s market, you’ll need to make sure your listing stands out from the crowd.

The Birthright Title team takes pride in being your knowledgeable and truthful Tennessee title provider. Reach out to us anytime you need our expertise! Thank you for choosing us to be part of your journey home.