Have you come across the saying, “don’t believe everything you hear”? It really applies if you're considering buying or selling a home in today’s housing market. There’s a lot of misinformation floating around. Right now, in particular, it’s crucial to have someone reliable to turn to for accurate information.

Working with a real estate agent can help clarify a lot of common myths and provide reassurance with data-backed insights. Here are some misconceptions they can help set straight.

1. I’ll Get a Better Deal Once Prices Crash

If you've heard that home prices are about to drop significantly, it’s worth taking a moment to examine the current situation. While prices can differ from one local market to another, various data sources indicate that a crash isn't on the horizon. In 2008, we saw a significant oversupply of homes, which led to a price collapse. Today, however, there's actually an undersupply of homes for sale, making the current market a very different scenario.

If you're thinking that waiting might help you snag a better deal, it's worth noting that data suggests there's no market crash coming soon. Holding off might not give you the benefits you expect.

2. I Won’t Be Able To Find Anything To Buy

If you're still feeling anxious about finding the right home with a move, it might be time to chat with an expert real estate agent. This year, there’s been an increase in the number of homes for sale. According to data from Realtor.com, while we don’t have as many homes available as we did in a more typical year like 2019, the inventory is still higher than it was at this time last year (see graph below).

If you're recalling all the media buzz about the record-low housing supply during the pandemic, you can breathe a sigh of relief. The market might not be completely back to normal, but the inventory is on the upswing. This improvement means you'll have more options and can put aside the misconception that finding a home to buy is a daunting task. It’s becoming a lot more feasible.

3. I Have To Wait Until I Have Enough for a 20% Down Payment

Many folks still think you have to put down 20% to buy a home. Fannie Mae highlights just how common this misconception is.

““Approximately 90% of consumers overstate or don’t know the minimum required down payment for a typical mortgage.”
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— Fannie Mae

If you check out the data from the National Association of Realtors (NAR), you'll notice that the average homeowner isn't putting down as much as you might think.

First-time homebuyers usually put down around 6%, which is much lower than the 20% many people expect. If you're studying that graph and notice that repeat buyers are putting down closer to 20%, it's important to understand that this is mainly because they have built up a significant amount of equity in their current homes. They can use that equity for a larger down payment on their next purchase.

You don't always need to make a 20% down payment, unless your loan type or lender specifically requires it. In fact, many buyers put down much less. Depending on the home loan you choose, you might only need to put down 3.5% or even nothing at all. So, if you're buying your first home, you might find that your down payment can be a lot smaller than you expected.

An Agent’s Role in Fighting Misconceptions

If you’ve hit the brakes on your move because of these myths, it’s a good idea to reach out to a trusted agent. A knowledgeable agent has access to the right data and facts to ease your concerns and clear up any misunderstandings that might be keeping you from moving forward.

Bottom Line

If you have any questions about what you've been hearing or reading, feel free to reach out. It's important to have someone you can rely on to provide you with accurate information.