Real Estate Myths That Could Cost You Thousands

Claudia San Roman
May 21
2 min read

Updated: Jun 27

The real estate world is full of advice—but not all of it is accurate. Whether you’re buying or selling, falling for common real estate myths can lead to costly mistakes.

Let’s bust some of the biggest misconceptions that might be hurting your bottom line.

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

Truth: You can often buy a home with as little as 3% down (or 0% if you qualify for a VA or USDA loan). Waiting to save 20% could delay your dream unnecessarily—especially in a rising market where home prices may increase faster than you can save.

Myth #2: You Can Always Price Your Home Higher and Lower It Later

Truth: Overpricing your home can lead to longer time on market, fewer showings, and lower offers. The first two weeks are your best chance to sell at full market value. Starting too high can cost you thousands in price reductions and lost buyer interest.

Myth #3: The Zestimate Is Always Accurate

Truth: While automated estimates (like Zillow’s Zestimate) are useful, they can be off by tens of thousands of dollars. They don’t account for recent upgrades, local trends, or unique features. A licensed agent or appraiser can give a more accurate valuation.

Myth #4: You Don’t Need to Prep Your Home to Sell in a Hot Market

Truth: Even in a seller’s market, condition matters. Homes that are clean, staged, and move-in ready tend to sell faster—and for more. Small investments in presentation can lead to big returns.

Myth #5: All Agents Are the Same

Truth: Experience, marketing strategy, and negotiation skills vary greatly between agents. Hiring the cheapest agent or your cousin’s friend may save on commission—but could cost you more in a lower sale price or missed opportunities.

Myth #6: You’ll Make Money Flipping Any House

Truth: TV shows make flipping look easy, but real profits require accurate budgeting, strong market knowledge, and smart renovation choices. One misstep can turn profit into loss quickly.