Real estate is an ever-evolving industry. It fluctuates based on our economy and community-specific trends. Due to this, we often hear some "myths" that stem from outdated information or misunderstandings. Let's bust them!

Myth: "You need a 20% downpayment to buy a home." 

Busted: Many buyers qualify for loans that require only 3% to 5% down, while veterans who qualify for a VA loan may not have to put any money down at all. There are also down payment assistance programs for many first-time homebuyers in Dane County. Some buyers do opt to put 20% or more down to avoid Private Mortgage Insurance, however.

Myth: "You can't ask for a home inspection in this market."

Busted: Home inspections are becoming common again as the market becomes more balanced. In fact, our firm's tracking reported that 67 percent of July contract signings included an inspection contingency -- the highest percentage of the year. 

Myth: "Mortgage rates are historically high."

Busted: Earlier this week, we saw a drop in mortgage rates to a palatable 6% (depending on your loan type). At the beginning of the year when rates hovered around 7%, many national forecasters did not expect rates to go below 6.25% in 2025, so this is great news for those looking to (re)finance. 

Myth: "First-time homebuyers can't compete in this market."

Busted: Our team regularly helps first-time homebuyers - even in competitive markets! By educating each buyer on the current market, exploring their buying power, using creative offer techniques, and maintaining good relationships in the real estate community, we are experienced in making the buying process smooth for all types of buyers. 

Myth: "Real estate is a bad investment in this market."

Busted: Real estate in Dane County continues to appreciate year over year. Since this time last year, the median residential sales price increased 2.2%, and the average sales price increased 1.3%. Real estate continues to be a secure investment in our community. (Thank you, Matt Doyle, for these stats!)

Myth: "Every update I make adds value to my home."

Busted: Updates add value to a listing when they align with the price range and style of the home, when the aesthetic is marketable, and when they are completed with craftsmanship. Money put into a home doesn't necessarily mean an increase in value. If you'd like to discuss what updates would increase your return on investment, reach out about a free cosmetics consultation. We'd love to help you. 

Myth: "Spring and summer are the best times to buy a home."

Busted: Autumn and winter offer a unique opportunity for buyers who are willing to brave the chillier weather. Fewer buyers are in the market, which means less competition, your dollar stretches further, and fewer concessions in your offer. There are some benefits for sellers, too.