Real estate might be one of the most talked-about topics at any Tennessee dinner table, which means a lot of well-meaning advice gets passed around that simply is not true anymore. Some of it was accurate a generation ago. Some of it never was. Either way, believing the wrong thing can cost you real money, whether you’re hoping to buy your first place in Chattanooga or sell the family home in Knoxville.
The good news is that a trusted local expert can help you sort the facts from the fiction. The members of Tennessee REALTORS® work in this market every day and understand how it behaves. Here are some of the most stubborn myths still floating around, and the reality behind each one.
Myth 1: You need 20% down
This is the big one, and it keeps more people renting than almost any other misconception. The idea that you must save a full fifth of the purchase price before you can buy is outdated. The typical first-time buyer actually puts down around 10%, not 20%, according to the National Association of REALTORS® (NAR). Plenty of loan programs go lower still. Conventional loans can start at 3% down, FHA loans at 3.5%, and qualified VA and USDA borrowers may put down nothing at all.
There are also thousands of down payment assistance programs out there, and most first-time buyers who qualify for one never use it. Putting 20% down has real perks, like avoiding private mortgage insurance, but it has never been a hard requirement.
Myth 2: Spring is the only good time to buy or sell
Spring gets all the attention, and it’s true that more homes hit the market and buyer traffic picks up as the weather warms. But the idea that you have missed your window if you are not listed by April just does not hold up. People shop for homes all year long, and the buyers who are out looking in the fall and winter tend to be serious about moving rather than casually browsing.
Fewer listings in the colder months can also mean less competition, which works in your favor whether you are buying or selling, depending on the situation. The data on seasonal selling shows that the market softens in winter; it doesn’t close. The best time to make your move is usually the time that fits your life, not the calendar.
Myth 3: You should wait for interest rates to drop
It’s tempting to sit on the sidelines and hold out for a better rate. The catch is that nobody, neither economists nor lenders, can reliably predict where rates are headed next. While you wait, home prices may keep climbing, and the house you had your eye on may sell to someone else.
A common way agents put it is that you marry the house and date the rate. In other words, buy the home that fits your needs now, then refinance later if rates come down. Trying to perfectly time the market is often a losing game.
Myth 4: Price your home high, you can always come down
Sellers often assume that starting with an ambitious asking price gives them room to negotiate. In practice, an overpriced home tends to sit, and a listing that lingers makes buyers wonder what is wrong with it. Homes priced right from day one usually sell faster and closer to the asking price.
Nationally, as of May 2026, sellers are getting 98.3% of their list price, and that happens through smart pricing rather than inflated numbers. A good agent will pull the comparable sales in your neighborhood and help you land on a figure that attracts offers instead of scaring them away.
Myth 5: You can save money by skipping the agent
With so many listings a click away, it’s easy to assume you can handle a sale or purchase solo and pocket the difference. The numbers tell a different story. Most buyers and the vast majority of sellers still work with an agent, and homes sold without one tend to fetch noticeably less.
Recent NAR figures put the typical for-sale-by-owner home at a median of $360,000 compared to $425,000 for agent-assisted sales. That gap is not purely apples to apples, since owner-sold homes tend to cluster in lower-priced markets and often go to a friend or relative; still, the pattern is hard to ignore. An experienced agent earns their keep through pricing, marketing, negotiation, and the mountain of paperwork most people only face a handful of times in their lives.
Myth 6: The online estimate is what your home is worth
Those instant home value tools are fun to check, but they’re estimates built from broad data, not a true read on your specific house. An algorithm cannot see your renovated kitchen, your corner lot, or the little things that make a particular street more desirable. Real value comes from a comparative market analysis and, ultimately, from what a buyer is actually willing to pay.
Facts over fiction
The throughline here is simple: The housing market changes, and the advice that worked for your parents may not serve you today. Before you make one of the biggest financial decisions of your life based on something you heard secondhand, talk to someone who works in real estate full-time. You can find a REALTOR® you trust through Tennessee REALTORS® and get answers grounded in today’s market instead of yesterday’s myths.
Buying or selling a home is a big deal. When undertaking it, rely on the facts and let the myths stay at the dinner table.
