12/10/24

As leaders in the title space, our teams take consumer education seriously. We’re not saying this to toot our own horn. It’s to set up why debunking common real estate myths is important. Consider this blog our version of the “naughty list.” While our teams often use this space to remind future buyers they don’t need 20% down to purchase a home, here are four other long-held falsehoods we hope don’t advance into the new year.

Myth: Not using a REALTOR® is a good way to save money. One of the big stories in 2024 was how the structure of commissions has changed, especially on the buyer’s side. We know that there is a segment of the population who continues to believe that going the FSBO route can save plenty of cash, but here’s the reality. Our REALTOR® friends continue to prove that their expertise is important and valuable to buyers and sellers alike. In fact, recent data from NAR shows that For Sale by Owner transactions are actually at an all-time low. Couple that with the fact that buyers and sellers often recommend their agent to friends and family members, and it’s undeniable that working with a real estate agent is still well worth the investment.     

Myth: Interest/mortgage rates are too high to buy a home right now. The home affordability conversation is a complex one, so we’ll say that this one is only partially a myth. But it’s important to debunk this part of it – a survey from last summer showed that more than half of Gen Zers and millennials thought mortgage rates were at an all-time high. (They weren’t). Here’s the real truth: We’re not likely to see mortgage rates as low as we did during the pandemic anytime soon, but they do change daily, so it’s always good to keep an eye on trends. There are a lot of factors that go into affordability. Plus, it’s always possible to refinance to save money in the future.

Myth: Student loans and other debts are disqualifiers for home ownership. Lenders look at your debt-to-income ratio, not just your total debt. With manageable debt and a steady income, many young buyers can still qualify for a mortgage, even if they carry other financial obligations. Again, this is why it’s important to rely on the expertise and guidance of our fellow real estate professionals.

Myth: Wire fraud could never happen to me. This is the only myth on the list that we wish was true. Real estate has always been a prime target for fraudsters due to the number of people and money involved in a single transaction. That will remain true in 2025 and beyond. Scammers are always sharpening their tactics and finding new ways to trick our partners and customers, so we all need to remain vigilant in this fight. Remember that 25% of recent homebuyers surveyed by our friends at CertifID reported receiving suspicious communication while closing on a home, and 1 out of 10 believed they were the target of a specific fraud attempt.  

Getting the right information and data to our partners and customers will be the key to a successful 2025 for all of us. With that in mind, we hope you share this list with anyone who needs it. Thank you for trusting us to help you with residential and commercial transactions. Our teams love working with you during the holiday season and beyond!