11 Spooky Real Estate Myths That Need to Die by Jeff Duneske, Northville Realtor®

Fact vs. Fiction: 11 Real Estate Myths That Need to Die

Every October, haunted houses are not the only things that scare people. Real estate myths have been creeping through social media, open houses, and dinner parties for years, and some just refuse to die.

Below, I am separating fact from fiction on some of the most common myths I hear in today’s Metro Detroit housing market.

Myth 1: You need 20 percent down to buy a home

Truth: You do not need a full 20 percent to buy a home. The real horror story is waiting too long because of bad information.

According to the National Association of Realtors, the median down payment in 2024 was 18 percent overall and just 9 percent for first-time buyers. In Metro Detroit, local lenders often have programs with as little as 3 to 5 percent down. Keep in mind that buyers who put down less than 20 percent usually pay private mortgage insurance.

Myth 2: Fall is a bad time to list

Truth: Serious buyers do not hibernate. Fall listings in Northville, Novi, and South Lyon often stand out with colorful backdrops and less competition.

In fact, October can be a strong month for sellers before the holidays slow things down. Many of my listings this time of year receive quality traffic and motivated buyers.

Myth 3: You should always price high and negotiate down

Truth: Overpricing can hurt your listing more than help it.

When you price above market value, you risk sitting too long and losing momentum. Homes priced correctly from the start tend to sell faster and attract stronger offers. In Plymouth and Northville, buyers are data-driven and will often skip overpriced listings entirely.

Myth 4: Wait until rates drop to 5 percent

Truth: No one can time the market perfectly. Waiting for the “perfect” rate might mean missing the perfect home.

Rates have not reached the 5s in years, and experts do not expect that to happen soon. Focus on what you can control, such as your budget, your timeline, and finding the right home for your needs.

Myth 5: You cannot buy a home with bad credit

Truth: It is more challenging but not impossible.

I have helped buyers in Metro Detroit purchase homes with credit scores in the 500s by choosing the right loan program. Conventional loans typically require around 620, while FHA loans can go as low as 500 with 10 percent down. A trusted lender can guide you through the best options.

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

Truth: Algorithms cannot see your upgrades, neighborhood views, or curb appeal.

Online estimates can provide a starting point, but a local agent can deliver a pricing strategy based on real market data. In Northville and Novi, factors such as school district, lot size, and walkability can dramatically change your home’s value.

Myth 7: Renting is smarter than buying

Truth: It depends on your situation, but long-term, buying builds wealth.

The typical homeowner’s net worth is about 430,000 dollars, compared to less than 10,000 dollars for renters. Even with today’s costs, homeownership remains one of the best ways to build equity and stability in Metro Detroit.

Myth 8: The lowest interest rate is always the best deal

Truth: The lowest rate is not always the lowest cost.

Compare the annual percentage rate, fees, and loan terms. Sometimes a slightly higher rate with lower fees saves you more in the long run. Ask your lender for a full breakdown before making a decision.

Myth 9: We are headed for another 2008 crash

Truth: Today’s market is fundamentally different.

Back then, risky loans and mass foreclosures caused chaos. Now, underwriting standards are stronger, homeowners have record equity, and inventory remains limited. In Metro Detroit, prices have adjusted modestly but the market remains stable.

Myth 10: Preapproval and prequalification are the same

Truth: They are not.

Prequalification is a rough estimate based on information you provide. Preapproval verifies your documents, credit, and income, giving you real buying power. In Northville and South Lyon, many listings require preapproval before scheduling a showing.

What You Will Need for Preapproval

• Two recent pay stubs

• Two years of W-2s or tax returns if self-employed

• Two months of bank statements

• Government ID

• Details on outstanding debts

Most lenders can issue a preapproval in 24 to 48 hours once your documents are submitted.

Myth 11: Student loans disqualify you from buying

Truth: They do not.

Student loans factor into your debt-to-income ratio but do not automatically disqualify you. I have helped many buyers with student loans purchase homes in Plymouth and Novi. The key is understanding your ratios early and working with a lender who can guide you through your options.

Bonus Myth: You do not need an agent in a hot market

Truth: Even experienced buyers and sellers benefit from professional guidance.

From pricing to negotiation to contract details, an agent can save you time, stress, and money. Think of me as your guide through the maze of real estate, helping you navigate every step with clarity and confidence.

Final Takeaway

Real estate myths make for entertaining stories, but they rarely lead to great results.

If you have been hesitant to buy or sell because of what you heard online or at a dinner party, it is time to get the facts.

If you want to know what is truly happening in Northville, Novi, South Lyon, or Plymouth, reach out anytime. I would be happy to discuss your options and help you create a plan that fits your goals.