By Jessica LeDoux, March 11, 2023
If you’re thinking about buying a home or have already started the process, it’s likely you’ve come across mixed messaging or confusing advice. With so many “experts” out there, it can be hard to know who to listen to and who to ignore. To help clear things up, we’re busting 5 of the most common myths we hear about in real estate.
Myth #1 – You need a high down payment to buy a home
One of the most common myths we hear is that you need a large down payment, usually 20% of the purchase price, to buy a home. While it’s true that putting down 20% allows you to avoid private mortgage insurance (PMI), there are plenty of loan programs available that allow for lower down payments. In fact, many first-time homebuyers are able to put down as little as 3% with some programs. So if you don’t have a ton of cash saved up, don’t worry! There are still options available to you.
Myth #2 – Interest rates are historically high
While interest rates are currently rising after hitting all-time lows in recent years, they’re still inline with the historical average. The current rates have created opportunities for buyers that could not compete in the aggressive market Portland experienced in 2020-2022 due to the unprecedented low interest rates. In other words, now is still a great time to buy despite higher rates. Please reach out if you would like to chat in more depth about important factors to also consider when deciding if now is the right time for you to buy a new home.
Myth #3 – It’s better to buy a home without representation
When you purchase a home with representation, you have an experienced real estate agent by your side who can help to guide you through the entire process and answer any questions that you may have. From helping you find properties that fit within your budget to negotiating price and inspection items on your behalf—an experienced representative will always have your best interests at heart throughout every step of finding and purchasing your home. They can also provide invaluable advice when it comes to making decisions about inspections, title work, and other important steps in purchasing a home. Having someone on your side is essential for achieving success when buying a house.
Myth #4 – You Must Sell Your Current Home Before Buying a New One
If you own a home and are looking to upgrade or downsize, there’s no rule saying you have to sell your current home before buying a new one. In fact, many people choose to buy their new home first and then list their old one afterward. This gives them more time to find the right buyer and get top dollar for their old home instead of rushing through the process and leaving money on the table. However, this strategy isn’t without its risks since it requires being able to carry two mortgages at once, which can be tough on your budget. If you go this route, make sure you speak with a trusted lender and real estate professional beforehand so they can help ensure you’re making the best decision for your unique situation.
Myth #5 – Offer less than you’re willing to pay, so you have room to negotiate
This myth is perpetuated by TV shows and movies where buyers lowball sellers with an initial offer way below the asking price in an effort to leave room for negotiation. But in reality, this strategy rarely works since many Portland homes are still receiving multiple offers and when they do not there are still many factors to consider when determining what your best offer is. If you really want the home, start with your best offer right from the get-go because you may not be given an opportunity to amend.
Now that we’ve busted some of the most common real estate myths out there, we hope you feel more confident in your journey toward homeownership! When in doubt, always consult a professional who can provide guidance specific to your situation. Our team has over 30 years of experience and is focused on serving our community with integrity, empowering and educating future homeowners. If you have questions please reach out, we would love the opportunity to connect.
Jessica LeDoux
Broker | OR
She/Her
JESSICA LEDOUX
Licensed Broker
Lead Buyers Agent
Oregon is where Jessica’s heart lies. Born and raised in Portland, Jessica grew up in Concordia and bought her first home in North Portland in 1996. She was seduced by the front porch of a 1920’s bungalow and as a young 20 year old there were so many factors she did not know to take into consideration when choosing her home. After 5 years of restoring the home, it was time to move and the seed had been planted – her love of restoring homes was born. It took a few more projects and years for her to make the choice to enter Real Estate. In 2006 she got her license and set out to empower people with information and encourage inquiry beyond the basic needs in a home, which was something she wished was provided to her when she bought her first home. As her Real Estate career developed she found joy in helping buyers the most, which led her to specialize in buyer representation.
Jessica loves helping buyers consider all angles, future needs, and possible roadblocks in a home. Her goal is to empower a buyer with choices and to consider the unchangeable elements of a home to better ensure many years of happiness in their new home. Buying right is the most important factor to protecting your investment and she takes this very seriously, which is why helping buyers eliminate homes in order to get to the right one is her top priority. She believes wholeheartedly in the power of investing in real estate. She brings this wealth of technical housing knowledge, intimate familiarity with the city, and investment experience to her counsel for homebuyers, but it is her commitment to buyer advocacy (and seeing the impact this has on people's lives) that most inspires her and has kept her engaged and in love with her job after all these years.
Jenessa V.
Licensed Buyer Team Operations Manager
jenessa@livingroomre.com
When I first joined our team in 2019 I had been feeling dispirited about real estate. I'd been a realtor for several years and had a strong desire to find increased meaning within an industry that didn't always reflect my values. The thing that kept me returning to real estate despite this was the zing of happiness I felt when I helped clients through the home-buying process and witnessed them on the other end having accomplished a dream or otherwise empowered. To me, the role of a realtor is one of stewardship. I am proud to be on this team because the level of informed honesty, ethical counsel, and all-around excellence we offer is truly unparalleled in this industry.
Working as the Operations Manager on our buyer team means I get to focus on all my favorite parts of the job. I'm hyper-attentive to detail and delight in tending to nuance; transparency and communication are critical. If you are at ease knowing the train is running smoothly and if I answer your questions (maybe even before you've thought of them), then I've done my job well. I'm an introspective person and I view my sensitivity as a strength. I enjoy listening and taking the time to thoughtfully respond so we can move through the home buying process with intention together. I think searching for a home is about identifying your fundamental values and assessing how the decision you make about where you live can best support the life you want to lead.
On the more personal side, when I'm not working I'm probably writing or thinking about language. Give me a stack of good books and I'm happy. I'm a creative thinker and a maker - I love great design and discovering new outlets for expression. I don't ever want to stop learning. Putting my hands in dirt is just about the most invigorating thing I can think of and my little garden is my sanctuary. I like to dance at home so free that it makes other people laugh. I love to sing. I freaking love my family.
Karim Alaeddine | Operations | Principal Broker Licensed in OR | karim@livingroomre.com
Kim Parmon | Lead Listing Agent | Principal Broker Licensed in Oregon | kim@livingroomre.com
Andee Zeigler | Licensed Listing Team Operations Manager | andee@livingroomre.com
Jenessa VanZutphen | Buyer Operations Manager | Licensed in Oregon | jenessa@livingroomre.com
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- T: 503-310-5816
- Jessica@livingroomre.com
