Real Estate Myths

Rumors go around about real estate that can ultimately scare seller's and buyer's. We want to debunk some of the top misunderstood statements known in real estate.


You need 20% down to purchase a home. FALSE

Many people have been told that they need 20% down to purchase a home. This may have been true years prior but right now that is far from the truth! Having extra capital is fantastic but in reality it is not as common and far from the norm today. Banks offer tons of options that allow buyer's to come to closing with less than 20% down. There are many programs such as FHA mortgages where you only need as little as 3.5% down, VA programs have options of 0% down and even some Conventional loans can get as low as 5%. The best thing to do is to speak to your local lender and discuss all the options that they can offer you. Each bank may be a little different in what programs they have.


Price it high...Don't worry it will sell. FALSE

Over pricing a home comes with a lot of negative feedback vs positive. Working with an agent who is knowledgable in the current market is super important. When agreeing on a listing price you want to make sure you are competitive but not over priced. Over pricing your home increases the risk a few responses...

  • You are not competitive with other homes in your market.

  • You may not even get showings if it is not desirable to buyer's.

  • Buyer's may not even make an offer if it's over priced.

  • Days on Market increase greatly, this can deter buyers from seeing the home or increase questions about problems with the home.

All you need is a down payment when purchasing.

A big misunderstanding when purchasing s home is that all you need is a down payment. Unfortunately, there are a few other expenses that are also included and buyer's should be aware of these costs. Yes, the downpayment is the most important and usually the largest cost associated with buying a home, but here are a few other costs that you will need to be aware of during the purchasing process.

  • Down Payment

  • Closing Costs (these will vary)

  • Bank/Lender Fees

  • Title Fees

  • Home Inspection Fee

  • Appraisal Fee

  • Pro-rated Taxes and Insurance

When you speak to your lender, ask them about the costs they can accept to see and the break down of those costs. Each bank may have different fees and costs associated with your transaction.


You need perfect credit to purchase a home. FALSE

Having good credit is very important but there are ways to get around having that perfect credit score. Buyer's can work with companies that offer assistance in either increasing ones credit to be stronger in bank review. Some banks also offer programs that accept lower credit scores and the terms are slightly different. In Great Falls banks are always willing to meet with clients and discuss their options. Great Falls Board of Housing and Neighbor Works Great Falls are incredible resources to work with in becoming a stronger home buyer!


It's my house, I can do whatever I want. FALSE

Buying a home has its benefits but also could come with a few restrictions. When you are in the process of purchasing have your Realtor look into getting you as much info on the property or land as possible. If you want to purchase land to build a shop, build storage units or even have livestock the details of allowing you to do that are in the fine print. Most properties are going to have zoning codes, building codes but the tricky ones that get over looked are the following...

  • Covenants & By Laws

  • HOA (Home Owners Association)

  • Zoning & Permits

Home Inspections are Pass or Fail. FALSE

Many Buyer's and Seller's get confused that a home inspection either passes or fails and that determines if the house is actually sellable. This is not really true. Once a home inspection is completed the Buyer and Seller have an opportunity to negotiate terms again. This can happen in many different ways. Working with a realtor who understands this process and how to negotiate is vital to a successful closing. A few ways to negotiate that are more common are....

  • Buyer request Seller to fix a few items (both parties agree on these items).

  • Buyer and Seller agree to decrease the purchase price in an agreeable amount for fixes that are important to the Buyer but the Seller does not want to do them before closing the transaction.

  • Both parties can move forward with no repairs needed.

  • Both parties can choose to terminate the transaction.


Selling and Buying in Fall & Winter is bad. FALSE

Sometimes you will hear that selling your home in the Fall & Winter is a bad idea and you won't well your home for as much.... The Summer market is great but in actuality it is just as strong and remains active in the Fall & Winter. Some agents will claim that the holidays are their busiest months. It is not ideal to move in the winter due to the cold and snow, which is where that mentality of not selling comes from. Working with a real estate team who thinks out of the box and uses strategic marketing can defiantly sell your home no matter what season it is!