Ep. 22 Busting the Top Real Estate Myths

Think you need 20% down to buy a home? Waiting for interest rates to drop before making a move? Trusting your Zestimate more than your Realtor?

In this episode of Keys to the Coast, Kensie and Kelly of The Sandi Gentry Team tackle some of the biggest real estate myths they hear from buyers and sellers across West Michigan. From financing misconceptions to market timing, they separate fact from fiction and explain what today's housing market really looks like.

Whether you're buying your first home, preparing to sell, or simply staying informed, this episode will help you make confident, educated decisions and avoid common (and often costly) mistakes.

In This Episode:

• Do you really need 20% down to buy a home?
• Is it better to wait for interest rates to come down?
• Is spring and summer really the only good time to sell?
• How accurate are online home value estimates like Zillow's Zestimate?
• What today's West Michigan real estate market actually looks like
• Practical advice for buyers and sellers navigating today's market

If you've ever questioned whether now is the right time to buy or sell, this episode is for you.

If you enjoyed today's conversation, be sure to subscribe, leave a review, and share this episode with a friend or family member who could benefit from it.

Connect with The Sandi Gentry Team:

📍 RE/MAX Lakeshore
🌐 sandigentry.com
📧 mckensie@sandigentry.com
📞 616.502.7197

Thanks for listening to Keys to the Coast—bringing you the people, places, and properties that make the coast home.

Transcript

SPEAKER_01 0:03

Welcome back to Keys to the Coast Podcast with the Sandy Gentry team, where we bring you the people, the places, and the properties that make the Coast home.

SPEAKER_00 0:11

Today we're talking about something we hear almost every single day.

SPEAKER_01 0:16

Real estate myths.

SPEAKER_00 0:18

Boom. The things people believe about buying and selling homes that are just simply not true. Or at least they're not true anymore.

SPEAKER_01 0:27

Right. Some of these myths can actually cost buyers and sellers a lot of money or keep them from making a move that would have been a great idea for their family.

SPEAKER_00 0:36

So today we're busting the biggest real estate myths we hear right here in West Michigan every single day.

SPEAKER_01 0:44

Right. Whether you're thinking about making a move now or sometime in the future, this episode will help separate fact from fiction and give you a better understanding of today's market. Okay, let's talk about myth number one.

SPEAKER_00 0:58

Yeah, let's start with probably the biggest one, and it is nobody is buying houses right now.

SPEAKER_01 1:04

I seriously just heard that yesterday from one of my buyers. They were like, My uncle told me that no one's buying right now. It's a terrible time.

SPEAKER_00 1:10

It's too much interest. How could you buy right now? Right.

SPEAKER_01 1:13

I mean, we hear this constantly. People see higher interest rates than they were a few years ago, um, and assume buyers have disappeared.

SPEAKER_00 1:20

That's just not what we're seeing at all.

SPEAKER_01 1:23

Right, not at all. Homes are still selling every single day throughout West Michigan. Uh Grand Rapids, especially, has been so busy, obviously here along the lake shore. You name it.

SPEAKER_00 1:32

Yeah, I think buyers are still buying because life just doesn't stop. You know, people get married, they're having babies, getting divorced, relocating jobs or downsizing. It's crazy. Or my favorites, they get to retire someday.

SPEAKER_01 1:46

Right. The market may not be moving at the crazy pace that we saw in like 2020 or 2021, but buyers are absolutely still out there. And we're even starting to see multiple offers.

SPEAKER_00 1:56

In fact, the challenge isn't usually finding a buyer, it's making sure the home is priced correctly and the mark and marketed correctly.

SPEAKER_01 2:04

Right. I mean, that's what we were saying in the last episode, too, when we were just talking about market stats is is it a buyer's market? Is it a seller's market? And it's it's just all about pricing right now and marketing. If nobody's buying houses right now, then who keeps showing up at all of my open houses on the weekends?

SPEAKER_00 2:20

Seriously.

SPEAKER_01 2:21

Myth number two, I should wait for rates to come down.

SPEAKER_00 2:25

This is definitely the biggest myth right now.

SPEAKER_01 2:28

The most expensive for sure.

SPEAKER_00 2:30

Yes.

SPEAKER_01 2:30

People tell us all the time, I'm just going to wait until rates drop. I think I heard that one again yesterday, too.

SPEAKER_00 2:36

Yeah, the problem is no one knows if or when that's going to happen.

SPEAKER_01 2:40

I know. And more importantly, everyone else is waiting to. I mean, that's something that I always say when people are like, well, what are rates going to do? And we can obviously say, you know, we meet every single Monday with our lenders. We look at the economy, we look at what um people all over the world in different business avenues are saying about the market, but we don't have a crystal ball, right?

SPEAKER_00 2:59

So it's crazy when rates actually do decrease, that buyer demand it increases, which means more competitions, more multiple offers. And often we see those prices go higher.

SPEAKER_01 3:10

Right. Well, I mean, we're seeing that starting right now. You know, rates have kind of been pretty steady along that six and a quarter, six percent. And just even with spring and summer coming, we're seeing those multiple offers come back. So you can always refinance a mortgage later. You can't go back and buy the house at last year's price.

SPEAKER_00 3:28

Yeah. I really, man, we say that so much. It's so true. And hard to uh hard to get across, but the best time to buy is not a time based on rates. It's when you're financially and ready. When it's when you're financially ready and personally ready.

SPEAKER_01 3:44

Right. I know you always say that. You're no, it's it's timing the market's one thing. We say that's impossible. It's when you're ready to buy a home. Um, and as we all know, we're gonna say this again marry the house, date the rate.

SPEAKER_00 3:57

I've heard that so many times in our office. I know it's great. Uh it's one of our favorite sayings, though. I mean, it is. We say it a lot. It's a stable here for sure. Myth three.

SPEAKER_01 4:08

Myth number three summer is the only time to sell. And we hear that a lot of time in West Michigan, especially.

SPEAKER_00 4:14

Well, in the West Michigan, this one makes me laugh.

SPEAKER_01 4:16

Mm-hmm. Because if that'd be true, we'd all be an unemployed happier.

SPEAKER_00 4:19

Exactly. Yeah, the summer is definitely busy. Families like to move before school starts. The weather is wonderful and beautiful, and we love Lake Michigan. Um, homes show beautiful in the summer here.

SPEAKER_01 4:30

Yep, we touched on that a couple weeks ago at our last podcast, too, about getting your home ready for the summer in spring. But every season has its advantages, and spring definitely does bring excitement. Summer brings inventory, I would say. Um, fall brings more serious buyers, um, and winter brings motivated buyers. In my opinion, I think wintertime is definitely the most motivated buyers.

SPEAKER_00 4:53

Yeah, if they're if you if you're willing to pick up some boxes and move in the wintertime, you're committed. Yeah, there's no doubt. The one thing I'd like to tell the sellers is the best time to sell is when it makes sense for you personally, not based on a calendar at all.

SPEAKER_01 5:07

Yeah, some of our strongest sales happen in the middle of winter because the buyers looking are incredibly motivated. So summer is not the best time. I'd say every single season has its advantages.

SPEAKER_00 5:17

Absolutely. Myth number four.

SPEAKER_01 5:20

This is a big one, especially for our first-time home buyers. I need 20% down to buy a house, or I need to have 20% saved to buy a home.

SPEAKER_00 5:31

Let's talk to that future buyers for a second. How many times have you heard this?

SPEAKER_01 5:36

Probably thousands.

SPEAKER_00 5:38

Absolutely. People think they need to save that 20% before they can go buy anything.

SPEAKER_01 5:43

Right, or even think about it. And it's just simply not true. There's so many loan programs that allow much lower down payments, sometimes 3%, sometimes 3.5%, um, sometimes even less, depending on the program. Or if you're a vet, you zero percent down.

SPEAKER_00 5:58

That's a great loan. Yeah.

SPEAKER_01 5:58

Right. There's so many different options.

SPEAKER_00 6:00

We always encourage people to talk to the lender. You've heard us say it every podcast.

SPEAKER_01 6:04

Right.

SPEAKER_00 6:05

Talk to the talk to your lender, talk to your lender. We always encourage people to talk to the lender before assuming they aren't ready.

SPEAKER_01 6:11

Mm-hmm. Because we've had so many buyers tell us that I thought it was years away. Um, and they just have no idea how much closer that they actually are, that they just don't know.

SPEAKER_00 6:20

Or they're saving, savings, savings, and something in life happens. Next thing you know, I'm like, I thought you were saving for a house and you have a brand new car. Like, what happened? Right.

SPEAKER_01 6:28

You know, life happened.

SPEAKER_00 6:29

Yeah. He's like, Well, you know, the other one wasn't running so well. I'm like, Well, I hope you can shower in that car because that's that's a big payment.

SPEAKER_01 6:37

Right. But yes, you do not need 20% down. You have if you do have 20% down, or if you have been saving, that is great because if you put 20% down, you save on private mortgage insurance, which is good. Yeah, but it is not necessary to have 20%.

SPEAKER_00 6:52

Working with a first-time homebuyer right now, and it's so great to be able to walk through. Um, remember Dave Ramsey always says, um We've got a Dave Ramsey drop. Yeah, yeah, Dave Ramsey, uh, with a like a heart of a teacher, you know, like he walks alongside people like a heart of a teacher. And I love doing that with first-time homebuyers.

SPEAKER_01 7:10

It's so fun.

SPEAKER_00 7:11

Yeah, even with the their ability to jump on chat and like learn so much so fast, to hear you say what chat's saying and kind of back up the truth.

SPEAKER_01 7:18

Right.

SPEAKER_00 7:19

And just walk alongside them. It's just it's a great feeling.

SPEAKER_01 7:21

So I had um I drove a client to a listing the other or to a showing. It was actually your listing, Kelly. I did hear about it in Montague. Yeah, um, yeah, we drove together and he told me he's older, and he told me he was even looking at Chat GPT. I'm like, oh my goodness, this is not for it's everywhere. It's everywhere. And I had to be like, okay, make sure you're being specific when you're talking to chat. And he's like, Yeah, that's a good point. Yeah.

SPEAKER_00 7:44

I talked to chat this morning.

SPEAKER_01 7:46

So I'm sure you did. You love chat.

SPEAKER_00 7:48

Myth number five.

SPEAKER_01 7:50

Myth number five. Oh this one. This one gets gets the blood boiling. My zestament is accurate.

SPEAKER_00 7:57

Okay. Let's talk about this one. Uh-huh. Uh this one may get you in trouble.

SPEAKER_01 8:01

Probably. It's okay. Let's do it.

SPEAKER_00 8:03

Okay. Your zestimate can be useful starting point.

SPEAKER_01 8:07

Right, but it is not a market analysis and it is not an appraisal. And it definitely isn't seeing the inside of your home. This is what I tell, I always print it off. It is part of my CMA, which is the comparative market analysis that I go to or that I print and prepare before every listing appointment. I do print it off because we know the consumer and the clients are out there looking at Zillow. I mean, it is a very useful tool.

SPEAKER_00 8:31

It's a great tool.

SPEAKER_01 8:31

It's very easy with maps, you know, it is, but they do not see the inside of the home. They don't know that you put in new course countertops.

SPEAKER_00 8:38

Correct. Yeah.

SPEAKER_01 8:39

They don't know if you added an additional bedroom in the basement, which I'm walking through a client right now with their new condo. They added square footage. They don't know that. They simply take a two-mile radius and give you averages.

SPEAKER_00 8:51

All based on algorithms. You know, the local realtor, they're going to evaluate those actual comps, the market trends, the locations, the conditions, upgrades, and the buyer demand. And um, and that's really what it's going to take. You know, it's a great tool, but it's not the be-all end-all.

SPEAKER_01 9:07

So true. And we have seen some estimates be surprisingly close. Um, but I've seen them miss by tens of thousands of dollars.

SPEAKER_00 9:15

Absolutely. Zillow has never walked through like your house, I guarantee you.

SPEAKER_01 9:19

Right.

SPEAKER_00 9:20

Right.

SPEAKER_01 9:20

And they don't know that your neighbor neighbor has a purple garage.

SPEAKER_00 9:24

Or a weed factor. Oh, yes.

SPEAKER_01 9:28

The things we see in real estate.

SPEAKER_00 9:30

Or that barking dog next door just won't stop. Right.

SPEAKER_01 9:35

But yes, Zillow, remember, is just simply an algorithm. It does not know what your home looks like. It's not a market analysis, it is not an appraisal. So to truly know what your home's a value is, talk to a trusted real estate agent.

SPEAKER_00 9:49

I just thought of another bonus myth. You want to hear it?

SPEAKER_01 9:52

Yep.

SPEAKER_00 9:52

Um, I heard that I hear this one quite often. Let me know if you hear it. I'll just wait until the prices come down.

SPEAKER_01 9:58

Oh, yeah. That's a huge one. That's a famous one. Or I'm waiting for the prices to crash. I'm waiting for the market to crash. That's been a huge thing lately. Yeah. Not everyone thinks the market's going to crash. And there's, you know, some stats.

SPEAKER_00 10:12

Well, there's always doom and gloom out there. There's stats for everything. Correct. Yeah. And so like you see, like, oh, there's a war going on, so the market's gonna crash. And I'm telling you, the market's not going to crash. Right. Uh, what we're seeing in in Ottawa County and throughout Muskegon County and the West Michigan is still a supply issue.

SPEAKER_01 10:31

Right. I agree. We simply just don't have enough homes for the the number of buyers that are out there.

SPEAKER_00 10:36

Could the market shift? Absolutely.

SPEAKER_01 10:39

Mm-hmm. But waiting for some massive crash may mean it missing years of appreciation and opportunities.

SPEAKER_00 10:44

Absolutely. Yeah.

SPEAKER_01 10:45

I mean, we have these stories left and right about people who, you know, were waiting, waiting, found the perfect home, and then end up selling in a few years. And what is the average? 4%, 4% a year?

SPEAKER_00 10:57

Uh, we see in our in West Michigan, we see about 7% growth.

SPEAKER_01 11:00

Right. So, and then you're missing out on quite a big bit of equity.

SPEAKER_00 11:03

Yeah. Yeah. I I've actually have a best friend who's decided to rent his whole life. Like he's been renting his whole life.

SPEAKER_01 11:10

Yeah.

SPEAKER_00 11:11

And uh, I think my wife and I have sold.

SPEAKER_01 11:14

And that's a best friend?

SPEAKER_00 11:16

Yeah.

SPEAKER_01 11:16

Not using you as an agent?

SPEAKER_00 11:18

Rhino. Uh I'm just cheap that. He's got a nickname. Um, so yeah. So we've sold, I don't know, eight, ten times now.

SPEAKER_01 11:26

Mm-hmm.

SPEAKER_00 11:27

And um yeah, massive amounts of equity every time.

SPEAKER_01 11:31

So I have the the client that I was just talking to you about. Such an incredible family. I mean, him and his wife, he told me and he said, but where they made all their money is real estate.

SPEAKER_00 11:39

Yeah.

SPEAKER_01 11:40

He said we would buy, you know, really small homes in California for 400,000. They've owned them for 30 years. And he's like, I'm gonna sell it close to two million.

SPEAKER_00 11:47

Yeah.

SPEAKER_01 11:47

And he said that's where, you know, they would buy a home, fix it up, rent it, so cool. Sell it. And he said that's where we've made all of our money is real estate.

SPEAKER_00 11:54

Yeah, I know a lot of people make it in a lot of different ways, but I love to see, you know, actually see the money right there in front of you in the in the home.

SPEAKER_01 12:02

So another bonus, myth, because you did one.

SPEAKER_00 12:05

All right, go ahead. Let me hear yours.

SPEAKER_01 12:06

The only way to buy a house is with conventional loan or loans or cash.

SPEAKER_00 12:12

Yeah, that that's a bonus. What what we just had one. Let's hear it.

SPEAKER_01 12:15

Bitcoin.

SPEAKER_00 12:16

Isn't that crazy?

SPEAKER_01 12:17

Crazy. We've had a few.

SPEAKER_00 12:19

Yeah, yeah. Chicago titles working with us uh on those kind of bigger odd, I would say. Yeah. You just don't hear it very often where people actually went out in the market, they made great money on Bitcoin and they want to uh invest into real estate.

SPEAKER_01 12:33

Right? I know. I how many have we had here?

SPEAKER_00 12:36

A couple three three that I come to my mind.

SPEAKER_01 12:38

Yes, and I remember it was a while ago, maybe five years ago, when we had our first one and we were all like, whoa, because you know it was still scam alert, yeah. And of course, Sandy is like, nope, we are we are working this. And yeah, I mean it closed. It's it's amazing. So that's a myth is you can't use your crypto.

SPEAKER_00 12:56

But you can, you absolutely can. You can. All right, so let's wrap this up, Kens.

SPEAKER_01 13:00

Okay.

SPEAKER_00 13:00

At the end of the day, real estate is not a one size fits all.

SPEAKER_01 13:03

So true. Every buyer is different, every seller is different, and every situation deserves a strategy.

SPEAKER_00 13:10

So if today's episode taught you anything, let it be this don't make decisions based on myths. Make decisions based on the facts.

SPEAKER_01 13:20

Right. And if you're wondering whether one of these myths applies to your situation, we would love to help. Please reach out anytime. We are always happy to have a conversation.

SPEAKER_00 13:29

Honestly, so I can't say this enough. Thank you so much for listening to the podcast.

SPEAKER_01 13:34

Yes, and we will see you next time as we continue to bring you the people, the places, and the properties that make the case.