Real Estate Myths That Need to Rest in Peace — North Shore Edition
Every October, haunted houses aren’t the only things giving people chills. Real estate myths have been haunting open houses, coffee shops, and social media feeds across the North Shore for years—and some just won’t die.
Let’s shine a little light on what’s actually true in today’s market.
Myth #1: You need 20% down to buy a home.
Truth: You don’t. The real horror story is waiting too long because of misinformation.
According to the National Association of REALTORS®, the median down payment for first-time buyers in 2024 was just 9%, and many loan programs allow for even less. Here in the North Shore area, I’ve helped buyers purchase homes in Mequon, Cedarburg, and Grafton with single-digit down payments.
Just keep in mind that if you put down less than 20%, you’ll likely pay private mortgage insurance (PMI).
Myth #2: Fall is a bad time to list.
Truth: Serious buyers don’t take the season off.
In fact, fall listings often stand out because there’s less competition. Homes tend to show beautifully in the soft autumn light, and the colors of the season make curb appeal easy. Some of our strongest sales across the North Shore—especially before the holidays—have happened in October and November.
Myth #3: You should always price high and negotiate down.
Truth: Overpricing can kill your listing faster than a horror movie villain.
When a home sits on the market too long, buyers begin to assume something is wrong. In areas like Mequon and Cedarburg, homes priced correctly from day one tend to sell faster and attract stronger offers. Strategic pricing creates momentum—and momentum leads to better results.
Myth #4: You should wait until interest rates drop to 5%.
Truth: Waiting for the “perfect” rate might cost you the perfect home.
Rates haven’t been in the 5s for years, and no expert predicts that will change soon. Focus on what you can control—finding a home that fits your budget and long-term plans. You can always refinance later if rates improve, but you can’t go back and buy the home you missed.
Myth #5: You can’t buy a home with bad credit.
Truth: While lower credit can make things harder, it doesn’t make it impossible.
Most conventional loans require a minimum score around 620, while FHA loans can go as low as 500 with 10% down. I’ve helped local buyers secure homes despite imperfect credit by exploring the right loan programs and preparing in advance.
Myth #6: Online home values are as accurate as an agent’s pricing.
Truth: Algorithms can’t see your updates, finishes, or location-specific advantages.
Online estimates are a starting point, but they can’t capture what makes North Shore homes unique—whether it’s a quiet cul-de-sac in Grafton, a view of Lake Michigan, or proximity to Cedarburg’s historic downtown. A local agent uses true market data and neighborhood insight to determine accurate value.
Myth #7: Renting is smarter than buying.
Truth: It depends on your goals, but buying often builds more long-term stability.
Renting can make sense for short-term flexibility, but over time, homeowners build significantly more wealth. Nationally, the average homeowner’s net worth is around $430,000 compared to less than $10,000 for renters. Even with higher costs, homeownership remains one of the most reliable paths to financial growth on the North Shore.
Myth #8: The lowest rate means the best deal.
Truth: Not necessarily.
A low rate can sound great until you factor in fees, points, and other costs. The annual percentage rate (APR) gives a clearer picture of your true expense. Work with a trusted lender who can help you compare complete loan terms—not just the headline rate.
Myth #9: We’re headed for another 2008-style crash.
Truth: Today’s market looks nothing like 2008.
Back then, loose lending standards and risky loans caused widespread foreclosures. Now, underwriting is much stronger, and nearly half of homeowners have significant equity. Across the North Shore, prices have adjusted slightly but remain stable, and inventory is still low enough to support healthy demand.
Myth #10: Preapproval and prequalification are the same thing.
Truth: They are not.
Prequalification is a quick, surface-level estimate—usually without verified documents. Preapproval is much more detailed and shows sellers that you’re serious. In today’s market, most North Shore sellers expect a preapproval letter with your offer.
What to know:
Prequalification: Quick estimate, no verified documents.
Preapproval: Income, assets, and credit verified; stronger position when offering.
Timeline: With most local lenders, preapproval takes one to two days once paperwork is submitted.
Documents to prepare: Two recent pay stubs, two W-2s or tax returns, two months of bank statements, photo ID, and debt details.
Many listings even require preapproval before showings, so getting this step done early helps you move fast when you find the right home.
Myth #11: Student loan debt disqualifies you from buying.
Truth: Having student loans doesn’t automatically prevent you from purchasing a home.
It simply affects your debt-to-income ratio, the same way a car payment or credit card balance would. Many North Shore buyers with student debt still qualify once they understand how lenders evaluate those numbers. The key is getting preapproved early and knowing your options.
Bonus Myth: You don’t need an agent in a hot market.
Truth: Even experienced buyers and sellers benefit from professional guidance.
Your agent is your strategist, negotiator, and safety net all in one. From pricing and timing to offers and contingencies, an experienced local agent saves you time, stress, and money—especially in a competitive market like ours.
Real estate myths make great stories, but they rarely lead to great results. If you’ve been hesitating because of something you’ve read online or heard at a dinner party, it might be time to fact-check your fears.
Want to know what’s really happening in the North Shore market? Let’s talk about your goals and create a plan that fits your next move.