Myth #1: "You Need a 20% Down Payment"

The Myth:

You must save a full 20% down payment to buy a home.

The Reality:

This is false. In Canada, the minimum down payment is:

• 5% for the first $500,000 of the purchase price.
• 10% for the portion of the price between $500,000 and $1 million.

For a $400,000 home in Edmonton, the minimum down payment is $20,000. While a larger down payment reduces your mortgage insurance costs, it is not a requirement to get started.

Myth #2: "The Listing Agent Can Represent Me Too"

The Myth:

I can use the seller's agent to buy the home, and they'll look out for both of us.

The Reality:

This is called dual agency, and the agent's primary fiduciary duty is to the seller. They cannot give you negotiating advice, suggest a lower offer, or disclose the seller's bottom line. Always have your own Buyer's Agent whose only job is to protect your interests (and it’s free for you).

Myth #3: "The First Step is Looking at Homes Online"

The Myth:

Start your search on real estate websites to find your dream home.

The Reality:

The first step is always getting pre-approved for a mortgage. Knowing your exact budget prevents heartbreak, shows sellers you're serious, and allows you to shop with confidence. Looking at homes first is like test-driving cars without knowing your price range.

Myth #4: "A Home Inspection is Unnecessary for New Builds"

The Myth:

A brand-new home is perfect and doesn't need an inspection.

The Reality:

Always get an inspection. New builds can have issues with grading, plumbing, electrical, and HVAC that are missed during municipal inspections. An independent home inspector works for you and can identify problems before your new home warranty kicks in.

Myth #5: "Your Offer is Only About the Price"

The Myth:

The highest price always wins.

The Reality:

In competitive markets, terms can be just as important as price. A clean offer with a flexible closing date, a larger deposit, or fewer conditions can be more attractive to a seller than a slightly higher offer that is complicated with contingencies.

Myth #6: "You Don't Pay a Buyer's Agent"

The Myth:

Hiring a buyer's agent will cost me money.

The Reality:

This is 100% false. The buyer's agent's commission is almost always paid by the seller from the listing brokerage's commission. You get expert representation, negotiation, and guidance at no direct cost to you.

Myth #7: "The Bank's Appraisal is the Same as an Inspection"

The Myth:

The mortgage lender's appraisal means the house is in good condition.

The Reality:

An appraisal protects the lender by ensuring the property is worth the loan amount. A home inspection protects you by assessing the home's physical condition, from the foundation to the roof. You need both.

Myth #8: "All Real Estate Agents are the Same"

The Myth:

Any agent can help me buy a house.

The Reality:

Agents have different specialties, experience levels, and market knowledge. Some excel at listings, while others are expert buyer representatives. You should choose an agent with a proven track record of helping buyers in your target neighbourhoods and price range.

Myth #9: "You Can't Buy a Home with Bad Credit"

The Myth:

My credit score isn't perfect, so I can't get a mortgage.

The Reality:

While a higher credit score gets you a better interest rate, you can often qualify for a mortgage with a score in the 600s. There are also alternative lenders and programs for various financial situations. The key is to speak with a mortgage broker to understand your options.

Myth #10: "You Should Always Start with a Lowball Offer"

The Myth:

You should always offer significantly below the asking price to leave room to negotiate.

The Reality:

In a seller's market, a lowball offer can get you ignored. In any market, an unreasonable offer can insult the seller and make them unwilling to negotiate with you at all. Your offer should be based on recent comparable sales data, not an arbitrary discount.

These misconceptions often come from well-meaning friends, family, and outdated information. The Edmonton real estate market is complex and always changing. The best way to avoid these myths is to work with a professional who deals with the realities of the market every day.