Real estate is one of those industries where everyone has an opinion about something! And while property advice from family and friends at the barbeque on the weekend probably has the best of intentions, there are plenty of real estate myths and misconceptions out there. From misconceptions about property values to misunderstandings about the role of real estate agents, these myths can cause confusion and lead to poor decision-making. We’ve debunked 10 real estate myths to help you navigate the property market with confidence.

Myth 1: Property value always increases

While property can be a stable long-term investment, its value does not always increase and is affected by various factors such as the type of property it is, economic cycles, local demand shifts, and market conditions.

Myth 2: Spring is the best time to sell

While spring is typically the busiest time for real estate, the best time to sell depends on many factors, including market conditions, but above all - the best time to sell is when you’re ready. While spring may offer a busier market, selling off-season could also mean less competition and potentially more buyer interest.

Myth 3: Renovations guarantee profit

Home renovations are not a surefire way to profit. It’s possible to spend more than what you’ll get back and overcapitalise or renovate in a way that doesn’t align with what a buyer actually wants. Do your research and chat to your local agent before renovating.

Myth 4: Buy the worst house on the best street

While this age-old saying is sometimes true, it may not always be the case as costs for extensive repairs or rebuilds can overshadow the supposed benefits of a good location.

Myth 5: Real estate agents just show homes

While agents do open homes as part of their job, it’s only a small part of their job. Real estate agents play a vital role in pricing homes, preparing homes for the market and facilitating the sale to settlement process.

Myth 6: The first offer is usually the best one

The first offer on a property is not always the best one to take. A good real estate agent will negotiate on your behalf and help you navigate offers to ensure you're getting the best possible deal.

Myth 7: You can't buy a home without a 20% deposit

While a 20% deposit is ideal to avoid Lenders Mortgage Insurance (LMI), there are a variety of other options available, especially for first-time homebuyers, such as government assistance programs, grants, and specialised loans that require a lower deposit.

Myth 8: It's better to set your sale price with room to negotiate

Setting a high sale price with room to negotiate can backfire by limiting interest, whereas a competitive price may attract more buyers and potentially lead to higher competition and a higher price.

Myth 9: You only need to save for a deposit when buying a house

The initial deposit is just the beginning and it’s important to factor in additional costs such as stamp duty, inspections, legal fees, and insurance.

Myth 10: All agents are the same

Not all agents are created equal and they come with different skill sets, market knowledge and customer service levels. It’s important to choose an agent in your local area that you gel with and trust.

Common beliefs about property investment, selling times, renovation returns, deposit sizes, and the role of agents are not as straightforward as they seem. When dealing with one of life's biggest transactions, it pays to be informed. Remember to do your homework, consult with the professionals, and look beyond the myths to the facts that will guide your real estate decisions. Whether you're buying, selling, or simply exploring the market, knowing the truth behind these myths will put you in a stronger position to make savvy moves.

Which real estate myth have you heard that we should debunk next?