Real estate might be one of the most talked-about topics at any Tennessee dinner table, which means a lot of well-meaning advice gets passed around that simply is not true anymore. Some of it was accurate a generation ago. Some of it never was. Either way, believing the wrong thing can cost you real money, whether you’re hoping to buy your first place in Chattanooga or sell the family home in Knoxville.
The good news is that a trusted local expert can help you sort the facts from the fiction. The members of Tennessee REALTORS® work in this market every day and understand how it behaves. Here are some of the most stubborn myths still floating around, and the reality behind each one.
Myth 1: You need 20% down
This is the big one, and it keeps more people renting than almost any other misconception. The idea that you must save a full fifth of the purchase price before you can buy is outdated. The typical first-time buyer actually puts down around 10%, not 20%, according to the National Association of REALTORS® (NAR). Plenty of loan programs go lower still. Conventional loans can start at 3% down, FHA loans at 3.5%, and qualified VA and USDA borrowers may put down nothing at all.
There are also thousands of down payment assistance programs out there, and most first-time buyers who qualify for one never use it. Putting 20% down has real perks, like avoiding private mortgage insurance, but it has never been a hard requirement.
Myth 2: Spring is the only good time to buy or sell
Spring gets all the attention, and it’s true that more homes hit the market and buyer traffic picks up as the weather warms. But the idea that you have missed your window if you are not listed by April just does not hold up. People shop for homes all year long, and the buyers who are out looking in the fall and winter tend to be serious about moving rather than casually browsing…