12 Real Estate Myths That Might Surprise You in South Florida

Are you buying or selling in the greater Fort Lauderdale area, but suspect you might be working off outdated assumptions?

TL;DR: Many common beliefs—like needing a 20% down payment, renting always being cheaper than buying, or bidding wars being over—are simply not accurate anymore, especially in our dynamic South Florida market. Knowing the facts puts you ahead of the curve.

Myth #1: You Need a 20 % Down Payment

This is perhaps the biggest myth I see when talking with first-time and relocating buyers. The idea that you must write a 20 % down payment to purchase a home? Not true. Experts say many loan programs allow significantly lower down payments. 

In fact, national data show the median down payment for all buyers in 2024 was about 18 % and just 9 % for first-time buyers. 

What this means for you: If you’re looking in Fort Lauderdale, Wilton Manors, Oakland Park or Pompano Beach and thinking you can’t buy until you save 20 %, you’re not seeing the full picture. Let’s talk early and map out your options.

Myth #2: Online Home Value Estimates & Agent Pricing Are Equally Accurate

Plug in your address, get a number. Cool, right? But that algorithm can miss the real local nuances—upgrades, condition, unique lot, water view, amount of waterfrontage, and neighborhood trends.

As your agent, my job is to dig into what makes your property unique in the Fort Lauderdale market: location, view, renovation level, and current comps. Online tools can be a start—but they’re not the finish line.

Myth #3: Home Renovations Always Increase Home Value

Renovations can help—but assuming every dollar you spend is returned at closing? That’s a myth. Sometimes you can over-improve for the neighborhood. 

In our area, smart projects—fresh floor, updated landscaping, modern bathrooms—can move the dial. But extravagant personal tastes or high-end finishes that don’t align with nearby homes might not generate the return you expect.

Myth #4: Renting Is Smarter Than Buying

There are times when renting is perfectly valid—especially if you’re uncertain of location or timeframe. But broadly speaking: long term, buying often builds wealth and stability.

In South Florida, with limited land and steady demand, owning gives you control. You’re fixing your payment (with a fixed-rate mortgage), not the landlord raising the rent. Let’s explore your scenario and see which path fits you best.

Myth #5: The Lender Offering the Lowest Interest Rate Is Always Best

Low rate sounds great—who doesn’t want that? But the interest rate is only part of the picture. You also need to compare APR, fees, loan terms, and flexibility. 

I’ll help you vet lenders so you’re evaluating on total cost and suitability—not just the headline rate.

Myth #6: You Need Perfect Credit for a Mortgage

Perfect isn’t required. Higher scores help—but full-service lenders offer options for folks with lower scores, especially if you have a solid down payment or stable income. 

If you’ve been holding off because your credit isn’t flawless, let’s talk about your specific situation. We’ll map out what you can do now to qualify and move forward sooner.

Myth #7: Student Loan Debt Automatically Disqualifies You for a Mortgage

Student loans count in your debt-to-income ratio, yes—but they don’t automatically shut the door. Lenders look at the full picture.

If you have student debt and are wondering if you can still buy in the Fort Lauderdale area, good news: you very well can. Let’s run the numbers together.

Myth #8: Bidding Wars Have Ended

Some markets have cooled; they’re not always wild—but bidding wars haven’t disappeared. Certain product types (waterfront homes, certain price bands, etc.) still attract competition. 

I’ll help you be that ready buyer or write that competitive offer.

Myth #9: New Home Construction Costs Much More Than Existing Homes

Historically, maybe, but now the premium isn’t always huge. In some markets, new construction is on par with existing homes.

For you: when evaluating a new build vs. resale in our area, consider the warranty, timeframe, HOA, and upgrades—not just “new must cost more.” I’ll walk you through realistic comparisons.

Myth #10: Housing Affordability Is a Problem Only on the Coasts

The assumption that only coastal markets face affordability issues? Not accurate. Many regions across the country face similar pressure. 

For our local buyers: we’ll look at your budget, desired neighborhood (Wilton Manors? Dania Beach? Oakland Park?), and find what fits—not just a generic “market is unaffordable” blanket statement.

Myth #11: Preapproval and Prequalification Are the Same

Not even close. Prequalification gives you a rough idea. Preapproval goes through document verification, credit review, and underwriting. 

If you’re seriously shopping in our market, a preapproval letter strengthens your offer. I’ll help you understand which lenders do it thoroughly and how we present you as a strong buyer.

Myth #12: We’re Headed for a 2008-Style Housing Crash Again

The circumstances today are completely different from 2008. Risk is lower. Equity levels are stronger. Mortgage underwriting is tighter. 

In short: don’t let sensational headlines scare you off the market. With a proper strategy, buying and selling in this market can still make strong sense.

Final Takeaway

Myth-busting isn’t just fun—it’s practical. When you know what’s true and what’s not, you make smarter decisions, faster, and with less stress. Whether you’re moving, downsizing, upsizing, or investing around Fort Lauderdale or Wilton Manors, I’ve got your back.

Ready to talk about your situation—your goals, your timeline, your budget? Let’s get together and outline the next best step for you.

TL;DR Summary

• You don’t always need 20 % down to buy.
• Online estimates ≠ full value; renovations don’t guarantee ROI.
• Renting isn’t inherently smarter; new construction isn’t always costlier.
• Preapproval matters; bidding competition remains in hot segments.
• The market today isn’t a repeat of 2008—but you still need a strategy.

About Scott Morreau

Scott Morreau, PA is a top-rated Realtor® and Broker Associate with Real Broker, LLC, specializing in residential real estate in Fort Lauderdale, Wilton Manors, Oakland Park, Pompano Beach, Dania Beach, and Broward County. Licensed since 2001 and active in South Florida since 2006, Scott has closed over $52 million in Florida real estate, including $7.1 million in the past year alone.

Ranked among the top 500 agents in the region with 70+ five-star reviews, Scott is a trusted resource for luxury and waterfront homes, investment deals (including 1031 exchanges), relocation, and LGBTQ+ clients. He is known for concierge-level preparation, expert market insight, and a client-first approach he calls A Better Real Estate Experience.

📲 Call or text Scott at (954) 562-5111 or visit Scott Morreau PA – Top Realtor Wilton Manors & Fort Lauderdale Real Estate

Disclaimer

This blog post is for general informational purposes only and should not be relied upon as legal, financial, or real estate advice, nor does it guarantee outcomes. Markets and conditions change, and the data reflects specific time periods and may not represent current conditions. Real estate decisions should be based on individual circumstances, independent verification, and guidance from qualified professionals. Past performance does not guarantee future results. Information and data are deemed reliable and sourced from reputable outlets such as MLS data, government reports, or established media, but are not guaranteed and may not apply to all situations. Content may have been drafted or edited with AI assistance and may contain errors or omissions. Reading this post does not create a client or fiduciary relationship with Scott Morreau, P.A., REALTOR®, or Real Broker, LLC.