Debunking Common Real Estate Myths: What Buyers and Sellers Need to Know

Navigating the real estate market can feel overwhelming, especially with so much conflicting information out there. Whether you’re buying your first home or selling a property, understanding the truth behind common myths is crucial. East + Ivy Homes is here to help debunk these myths, so you can make confident, informed decisions.

Myth 1: You Need a 20% Down Payment to Buy a Home

A common misconception is that you need a 20% down payment to purchase a home. While putting down 20% can help you avoid private mortgage insurance (PMI), many buyers can secure a home with significantly less. Some loan programs allow buyers to put as little as 3% down. FHA loans require just 3.5%, and VA loans—available to eligible veterans—require no down payment at all. Instead of waiting to save a large sum, speak with one of our experienced real estate agents to explore your options and get into your new home sooner.

Myth 2: Spring is the Best Time to Buy a Home

While spring is traditionally the busiest season for real estate, it’s not necessarily the best time to buy. The increased demand during spring often leads to higher home prices and more competition. Fall and winter can offer more favorable conditions for buyers, with less competition and better negotiating opportunities. If you’re selling, spring can be advantageous due to higher buyer activity, but a well-priced home can sell any time of year. East + Ivy Homes agents know how to market your home year-round for maximum exposure and success.

Myth 3: Selling Without a Realtor Saves Money

Many sellers believe they can save money by selling their homes without a real estate agent. While this approach—known as "For Sale by Owner" (FSBO)—can save on commission fees, it can also lead to costly mistakes.

Realtors bring valuable expertise to the table, from accurately pricing your home to negotiating with buyers. A good agent understands the nuances of local markets and can advertise your home effectively, bringing in more qualified buyers. FSBO homes often sit on the market longer and sell for less than homes listed with an agent, so while you may save on commission, you could lose more in the sale price

Myth 4: You Should Price Your Home Higher to Leave Room for Negotiation

It might seem logical to list your home for more than it’s worth to leave room for negotiation, but overpricing can backfire. Overpriced homes often sit on the market longer, causing buyers to question what’s wrong with the property. Pricing a home correctly from the start is key to generating interest and potentially receiving multiple offers. Our East + Ivy Homes team is well-versed in local market trends in D.C., Maryland, and Virginia and can help you set the right price to sell quickly and at a competitive rate.

Myth 5: You Can’t Buy a Home If You Have Debt

Having debt doesn’t automatically disqualify you from buying a home. What lenders care about most is your debt-to-income (DTI) ratio, which measures your ability to handle monthly payments. If your DTI is around 43% or lower, you’re in good shape. Even if your DTI is higher, there are loan programs available to accommodate your situation. Our agents can connect you with trusted lenders who will help you understand your financial position and guide you through the mortgage approval process.

Myth 6: The Listing Price is Non-Negotiable

Many buyers assume that a home’s listing price is firm, but in reality, most sellers expect some level of negotiation. Depending on the market and the condition of the property, you may be able to offer below the asking price or request seller concessions. In a hot market, bidding wars may limit your ability to negotiate, but in a slower market, there’s often more flexibility. The experienced agents at East + Ivy Homes can help you determine the best approach based on current market conditions.

Myth 7: You Don’t Need a Home Inspection for a New Home

Even new construction homes can have issues, so skipping a home inspection is never a good idea. A home inspection ensures you’re fully aware of any potential problems, from faulty wiring to plumbing issues, before closing. This step is crucial, especially in areas with new developments, and can save you from costly surprises down the road.

Myth 8: Open Houses Are the Key to Selling Your Home

Open houses can help generate buzz, but they're not always the key to selling your home. In today's digital age, many buyers start their home search online. High-quality photos, virtual tours, and detailed listings attract more serious buyers than open houses.

Working with an agent who understands digital marketing can make a massive difference for sellers where tech-savvy buyers are common. Open houses still serve a purpose, especially for getting neighbors to spread the word and attracting walk-ins.

Myth 9: Wait for Mortgage Rates to Drop Before Buying

While it’s tempting to wait for mortgage rates to fall, trying to time the market perfectly can cause you to miss out on great opportunities. Even with fluctuating interest rates, home prices tend to rise over time. Rather than waiting, focus on finding a home that fits your budget now. You can always refinance later if rates drop. The agents at East + Ivy Homes can help you navigate the current market in the DMV and find the best financing options.

Make Informed Decisions with East + Ivy Homes

Understanding the realities behind these common real estate myths can help you make smarter choices, whether you’re buying or selling. With the guidance of the experienced team at East + Ivy Homes, you’ll be able to confidently navigate the market. Contact us today to get started on your real estate journey.