Fact vs. Fiction: 11 Spooky Housing Myths Debunked

Real Estate Myths That Just Won’t Die (and the Truth Behind Them)

Every October, haunted houses aren’t the only things giving people chills. Real estate myths have been floating around open houses and social media for years, and some of them just refuse to die.

So, let’s shine a little light into the dark corners and separate fact from fiction. Here are a few of the most common myths I still hear in today’s market… and the truth behind them.

Myth #1: You need 20% down to buy a home.

Truth: You don’t need 20% down, and waiting until you have it could cost you more in the long run.

According to the National Association of REALTORS®, the median down payment in 2024 was 18% overall and just 9% for first-time buyers. Depending on your loan type, you could qualify with even less.

Just remember: if you put down less than 20%, you’ll likely pay PMI (private mortgage insurance). However, that’s a small price to pay for getting into the market sooner.

Myth #2: Fall is a bad time to sell.

Truth: Serious buyers don’t hibernate.

In fact, homes often stand out more in fall because there’s less competition and buyers who are out shopping right now usually mean business.

Plus, homes look amazing in the warm autumn light and colorful landscapes. Here in San Diego, October can be a fantastic time to list before the holiday season slows things down.

Myth #3: You should always price high and negotiate down.

Truth: Overpricing is the fastest way to kill momentum.

When you start too high, your home sits, and buyers assume something’s wrong. The strongest offers come when your price matches the market.

In San Diego, homes priced correctly from day one consistently sell faster and for more money.

Myth #4: Wait until rates drop to 5%.

Truth: If I had a crystal ball, I’d be retired on a beach somewhere. 😉

Rates haven’t touched the 5s in years, and experts don’t expect that to change soon. Waiting for “perfect timing” can cost you the perfect home.

Focus on what you can control, finding a home that fits your lifestyle and budget now. You can always refinance later.

Myth #5: You can’t buy with bad credit.

Truth: Not true. A lower credit score makes it harder, but not impossible.

Conventional loans usually start around 620, and FHA loans can go as low as 500 with 10% down. I’ve helped plenty of buyers with less-than-perfect credit find creative paths to ownership once we connected them with the right lender.

Myth #6: Online home value estimates are just as accurate as an agent’s.

Truth: Algorithms can’t see your upgrades, your view, or how beautifully you’ve maintained your home.

Online tools are a decent starting point, but a local agent (👋 hi!) uses real market data and comparable sales to price your home strategically.

In San Diego, factors like ocean views, school districts, and even micro-neighborhood trends can shift values dramatically.

Myth #7: Renting is smarter than buying.

Truth: It depends on your goals, but long-term, homeownership does build wealth.

The typical homeowner’s net worth is over $430,000, compared to less than $10,000 for renters.

Even in today’s market, owning a home in San Diego is still one of the most reliable ways to build financial stability and freedom over time.

Myth #8: The lowest interest rate means the best deal.

Truth: The interest rate is only part of the story.

You need to look at the APR, which includes fees, points, and other costs. A slightly higher rate with lower fees could actually save you money over time.

Always compare total loan costs, not just the headline rate.

Myth #9: We’re heading for another 2008 crash.

Truth: Thankfully, no.

Lending standards are much stronger today, and nearly half of U.S. homeowners are equity-rich.

While prices have adjusted, supply is still tight and demand is healthy, especially in San Diego, where lifestyle and limited inventory keep our market resilient.

Myth #10: Preapproval and prequalification are the same thing.

Truth: They’re very different.

• Prequalification is a quick estimate, no docs verified.

• Preapproval means your lender has reviewed your income, credit, and assets, giving you stronger buying power.

In San Diego, most sellers expect a preapproval with your offer, and sometimes even to schedule a showing.

Get preapproved early so you can act fast when the right home comes along.

Myth #11: Student loans mean you can’t qualify.

Truth: Not necessarily!

Student loans are factored into your debt-to-income ratio, but they don’t automatically disqualify you.

I’ve worked with many buyers who carried student loans and still qualified for a great home. The key is understanding how those payments affect your ratios and working with a lender who can help structure your file strategically.

Bonus Myth: You don’t need an agent in a hot market.

Truth: Even the most seasoned buyers and sellers benefit from expert guidance.

From pricing to negotiations to navigating legal details, an experienced agent can save you time, stress, and money.

Think of me as your compass and flashlight in the haunted corn maze of real estate, minus the jump scares. 👻

Bottom Line

Real estate myths make great stories, but they don’t make great decisions.

If you’ve been holding back because of something you read online or overheard at a dinner party, it might be time to fact-check those fears.

Curious what’s actually happening in the San Diego market right now? Let’s talk about your options , whether you’re buying, selling, or just exploring what’s next. Book a call with me here: https://links.townsites.com/widget/bookings/intro-call-with-shelly