Purchasing a home is one of the largest investments most people make. It makes sense to dispel some lingering real estate market myths. When you’re informed about the facts around this decision, you can move forward with confidence, trusting you’ve done your research and that you are ready. Should someone offer some advice that doesn’t align with these facts, you’ll be able to spot the myth. You can trust I’m here for you whether you’re buying a home, selling a home, or renting. I welcome your questions.

Buyer Myths

MYTH: To buy a home, the down payment amount needed is always 20%.

FACT: Lenders can offer a variety of loan options which allows down payment amounts to range from 0% to 20%. When the down payment is at least 20%, buyers can avoid the private mortgage insurance (PMI). Qualifying first-time buyers could be eligible for a loan with as little as 3-5% down. USDA and VA loans offer 0% down for eligible buyers. It makes sense for buyers to make the largest down payment possible. 

MYTH:  Mortgage loan pre-approval isn’t necessary until after you’ve found a home.

FACT: Once you’ve made the decision to buy a home, even before you begin seriously looking, make an appointment with a lender to get a pre-approval letter. Getting this letter takes into account your full financial snapshot from your credit score to savings to earnings. This document will help you to determine a realistic budget for when you start checking out listings. The document also demonstrates to sellers that you are a serious and qualified buyer. Having a pre-approval letter first can be an edge when making an offer, especially in a competitive market when things can progress at a faster pace. 

It’s important to remember the purpose of this letter is to show you can obtain financing. It’s not a contract between you and a specific lender so you can choose to get the actual mortgage loan from a different lender than the one who provided the approval letter. Shop around the various lenders to see which has the best rate and closing fees.

MYTH: The pre-approval rate quoted will be the rate you’ll get when you close on the home.

FACT: It seems like this would be the case but the reality is interest rates adjust daily and it based on your loan amount, your credit score, the property location, etc. Unless a lender says the rate is “locked-in” until you find a home and sign a purchase contract with the seller, this rate can change. Ask questions so you’ll know if the rate is locked, varying, or if the rate has an expiration date. 

MYTH:  You can skip a home inspection to save some money especially if it’s a new construction home. 

FACT: The purpose of a home inspection is to identify any obvious or potential problems. These could range from faulty wiring to foundation issues. Here’s where the inspector’s experience, training, and keen eye will be able to identify things so they don’t become unexpected headaches later on. A home at any stage of construction or after years of being built can be susceptible to a problem. Getting a home inspection is money well-spent and brings peace of mind that nothing can hide and deliver a big (or costly) surprise later on. 

MYTH: “We need 4 bedrooms, 3 baths, a two-car garage, a home office, and a pool.”

FACT: Framing a buyer’s preferences into wants and needs makes all the difference when viewing listings. As your agent, we’ll discuss what’s important in your next home, your lifestyle preferences, and how the home needs to function. Once there’s a clarified list of true must-haves, this opens the doors for showing truly potential properties that deliver and check all of the boxes. Think about where some flexibility may lead to getting the functions you need without over-buying. 

Seller Myths

MYTH:  Spring is the best season to list your home.

FACT: There are pros and cons to selling a home in all seasons. While the real estate market is traditionally active in the first months of the year, there are other months that can equally work in your favor and your timeline. During the fall and winter months, buyers may face fewer bidding wars as inventory is reduced. For sellers, this timing places more focus on your home. Rather than think one month is better to list your home, instead consider what works well for you, your priorities, and your timeline. An experienced agent will know how to help your home get in front of people and attract offers during any time of the year.

MYTH:  I’ll lose money on my home if I don’t get the asking price. 

FACT: It’s natural to want a specific amount for your home. Some of the reasons behind this figure are rooted in what you paid, how much you invested for improvements and upkeep along with all the emotions and memories wrapped up in your home. It’s hard to put a price on this. Here’s where your listing agent can help you sort through your emotions and the competitive market value for homes similar to yours in neighborhoods nearby. Your agent will work with you on a strategy that centers around the value in your home plus blends in what the ever-changing market will support. You will discuss the asking price and if an offer comes in a bit lower, where you’re comfortable determining a bottom-line selling price. It’s important to remember that there isn’t a set price for every home. Much is influenced by the home’s location, condition, layout, square footage, lot size, the finishes and lighting as well as the timing of the market when the home is listed. 

MYTH: Renovating or adding upgrades before listing your home delivers a full return on your investment.

FACT:  Most would think the answer is “yes, always” but the facts are closer to returns being around 80% with varying factors contributing to how much the return investments will be. Renovations and upgrades in a kitchen or bathroom yield higher returns compared to other rooms. If you’re thinking about making some changes, first talk with your realtor. Your agent can share what the current buyers are seeking in a home. This knowledge helps you focus on key areas as well as finishes that match what buyers are requesting. Definitely take care of needed repairs and restoring the space to good condition. For upgrades, you’re looking at replacing a specific item with a newer, better, or more efficient version to makes a single feature higher quality.

Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR® and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers, and citywide was the #2 Top Producing agent in 2020, #3 in 2021, #2 in 2022, #5 in 2023 and 2024. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.