Busting 15 Real Estate Myths

Published January 8, 2026

Busting 15 Real Estate Myths

As we look forward to this new year and enter a new housing market era, Steve and Hans have tackled 15 of the most common real-estate myths they see in the market:

Myth #1: Properties Always Appreciate

“Average sales prices went up X%, so my home must have appreciated by X% too.” Not necessarily. Land tends to appreciate, but the structure ages—systems wear down, finishes date, and styles fall out of fashion. Appreciation isn’t automatic; it depends on what’s gaining value (the land) and what’s depreciating (the house).

Myth #2: Price Per Square Foot Tells the Whole Story

A “price per square foot” calculation will tell your home’s value. In reality, a “price per square foot” analysis can be directionally helpful but it is often not accurate and widely misunderstood. To use it properly, you’d need to separate out the land value first.  Also, you’d need to factor what’s inside the home both qualitatively and quantitatively.  A “price per square foot” calculation tends to be most helpful when it’s more of an “apples to apples” comparison such as with condos or neighborhoods with uniform construction.

Myth #3: Downsizing Means Cashing Out

For past generations, downsizing often meant selling the big house, buying something significantly smaller and pocketing the difference. Today, many buyers discover that “smaller” doesn’t always mean “cheaper.” Walkable neighborhoods, luxury condos and new construction often carry premium pricing. You may gain lifestyle and convenience—even if the savings aren’t there.

Myth #4: “We need four bedrooms, a two-car garage and a home office.”

Buyers often frame preferences as “needs” when they’re really “wants.”  When we dig into “why” a buyer needs a particular amenity, we often discover more flexibility - the 4th bedroom is to be used as an office or the garage is really for storage. Clarifying true must-haves widens the aperture of potential properties and helps avoid over-buying.

Myth #5: Building custom is the way to go—cheaper, faster, perfect.

If you build a custom home, you will get exactly what you want for less money. As we explained in our article What You Need to Know Before Building a Custom Home, while building custom can be rewarding, it’s seldom cheaper, faster or simpler and definitely not suitable for every buyer.

Myth #6: You don’t need an agent.

We’re biased but the idea that “we can handle this ourselves” underestimates what a top-tier agent brings. On the buy side, a great agent helps identify off-market opportunities, identifies the positives and negatives of potential homes, and navigates through offers, negotiations and relationships to set you up for success. On the sell side, the listing agent adds value by preparing your home, marketing strategically and negotiating effectively. 

Myth #7: If you look hard enough, you’ll snag a “deal” on a home.

Many buyers believe there’s an incredible bargain lurking if they search long enough. In our DMV market, if a home is truly priced below market value, it often triggers multiple offers and the price escalates. We advise our buyers that they need to decide if they want to find a “deal or a home”.  We’d rather our clients buy a strong-value home that checks most of their boxes that they’ll be happy in for years to come rather than chase a “deal” that may come with hidden costs or compromises.

Myth #8: You can “time” the market perfectly.

The question we hear most is, “Is now a good time?” The reality is that timing the market precisely is a fool’s errand. What really matters is you. What are your goals, your timeframe, your financing, your life stage? The amount of time you own the property is your biggest hedge against risk. Focus on your readiness, not the headlines.

Myth #9: Exposure is the same as marketing.

Many sellers believe that listing their home everywhere equals great marketing. The reality is that exposure and marketing are not synonymous.  As we explain in our article How NAR, MLSs and Zillow Use Market Power to Serve Themselves, exposure is simply having the home visible; marketing is crafting the story, positioning the property, targeting the right audiences, and using strategic formats so buyers receive the right message. 

Myth #10: Every house has a single, fixed “value.”

Homes aren’t like cars—there isn’t one exact number. Location, condition, layout, finishes, light and timing all influence value. Properties have a value range and in our article How Much Should I Pay for That House?, we explain that “real estate math” includes both objective and subjective adjustments. As listing agents, our goal is to prepare, market and negotiate so you land at the top end of that range rather than the bottom.

Myth #11: “I’m not emotional—I’ll be totally objective.”

Most people believe they’re the rational exception.  The reality is that when buying a home, everyone is emotional.  Personal memories, attachment to the home, hope for lifestyle change, fear of regret, always play a part. Recognizing and accepting that you have emotions doesn’t mean you lose objectivity, rather it simply gives you clarity.

Myth #12: Renovating will give you a full return on investment.

Many homeowners assume that a renovation will add value dollar for dollar.  If I spend $100K on a new kitchen, my house value will increase by $100K (or more!). The National Association of Realtors has done Cost vs Value reports over the years that shows that even high-end renovations often yield at most ~85% payback (kitchen and primary bathrooms have highest yields). Renovate for enjoyment first and resale second.

Myth #13: “I’ll wait for rates to drop, then jump in.”

Many buyers assume waiting for lower mortgage rates is the smart move. The reality is that rent paid, rising prices and lost equity growth typically offset any rate savings. Often the biggest “rate” you pay is time. Time “in the market” beats “timing the market.”  The other way to think about interest rate risk is that buying sooner protects your downside.  If interest rates rise, you’ll feel like a genius.  If interest rates do fall, you can always refinance.

Myth #14: Bigger lot = better value automatically.

More land doesn’t always equal more value. Usability, topography, privacy, maintenance and buyer preferences matter just as much as size. A large, sloped or high-upkeep lot may appeal to fewer buyers. In many sought-after walkable neighborhoods, buyers prefer smaller, usable yards and proximity to amenities over acres of under-utilized land.

Myth #15: “If I don’t get $X, I won’t sell because that means I’m losing money.”

Sellers often anchor to what they paid and invested—it’s human nature. But markets don’t always align with that number. When you factor in years of enjoyment and the cost you avoided by not renting, the true picture often looks more favorable. Financial outcome isn’t defined by price alone.  The goal in selling a home is to extract the maximum value from the market you have, not the market you want.  

As always, our job is to help you look beyond the headlines and statistics to understand what really drives value—in your home, your neighborhood and this ever-changing market.