Let’s face it—when it comes to real estate, everyone’s got an opinion. Whenever we see real estate related content on Instagram or Facebook, one of the first things we ask ourselves is “Is this person doing business in Maryland?” Real estate is all about location and real estate practices can differ drastically depending on where you are in the world.
So, let’s dig into (and bust) some of these myths!
Myth #1: You Need a 20% Down Payment to Buy a Home
Truth: You don’t need to drain your savings to get the keys to your dream home. While a 20% down payment is great for avoiding PMI (private mortgage insurance), there are plenty of options that allow you put down much less. We’re talking 3% down for some conventional loans, and if you’re a first-time buyer or a veteran, the options get even sweeter.
Bottom line: Talk to a lender and explore what’s possible. You might be closer to homeownership than you think! Need a referral to a local lender (or want to know why a local lender is your best bet)? I can help with that, reach out to me!
Myth #2: All Home Improvements Will Boost Your Home’s Value
Truth: Before you start swinging a sledgehammer, take a step back. Not all home improvements are winners when it comes to adding value. Sure, upgrading your kitchen or bathroom will give you a fantastic return, however, adding a custom slide from your bedroom to your backyard? Maybe not so much (unless your buyer has a thing for quirky fun).
Bottom line: The key is to think from the buyer’s perspective. What do buyers really want (and expect) in a home in today’s market? You need to understand buyer behavior AND your local market. What’s the best way to do that? Reach out to us to schedule a consult before diving into any major projects. Trust me—your wallet will thank you!
Myth #3: Price Your Home High to Leave Room for Negotiation
Truth: This one might sound good in theory, but overpricing your home is setting yourself up for a selling experience you won’t like. Buyers are savvy, and they know when a home is overpriced. Instead, nail the right price from the get-go to create buzz and get those offers rolling in. A well-priced home can lead to multiple offers, driving the price up naturally—who doesn’t love a little bidding war?
Myth #4: Sellers No Longer Have to Pay a Buyer’s Agent When Selling Their Home
Truth: Offering compensation to a buyer’s agent is a marketing tool. We’ve seen a lot of news articles claiming that sellers no longer “have to pay” a buyer’s agent. Spoiler alert! They never had to! Commissions have always been negotiable, however, since the creation of buyer agency and buyer representation, it has been a standard practice for sellers to provide an incentive in the form of payment to the buyer’s agent. Who does this incentive benefit and attract? Potential buyers! We are still seeing this practice in our Maryland real estate market. Want to talk through this more? Reach out to us!
Bottom line: Buyers are in the driver’s seat when buying a home. Buyers tell their agents which houses they want to tour. Buyers decide. And buyers want to know ahead of time, before touring homes, if their agent’s fees are covered or not. This is why offering compensation to a buyer agent can be another powerful marketing tool. Let’s be clear: it’s not required! Just like you don’t have to invest in refreshing your home with new flooring and paint, you don’t have to offer compensation to a buyer agent. It’s your choice!
Myth #5: You Don’t Need a Real Estate Agent in the Digital Age
Truth: Sure, the internet makes house hunting easy, but let’s be real—buying or selling a home is way more than scrolling through listings. A real estate agent brings expert market knowledge, serious negotiation skills, and experience to the table. They’re your guide through the entire process, helping you avoid pitfalls and making sure you get the best deal.
If you’re making an offer on a home, do you know what inspections (if any) should be added as contingencies in your contract? If you’re selling your home, do you know what needs to be disclosed in the state of Maryland?
Bottom line: Having an expert on your side? Totally worth it.
The real estate world can be tricky, especially with social media featuring agents from all over the world! We hope you’ll think of us as your local resource for accurate, up-to-date real estate information. Reach out if you want to chat or would like specific information for your real estate market. We’d love to help!
