Truth Or Scare
Every October the haunted houses open, and every year the same real estate myths come creeping back out. Some scare sellers into the wrong price. Some scare buyers out of a home they could have had. Here are ten of the spookiest, and the truth behind each one.
The short answer. The scariest thing in real estate is rarely the house. It is a decision made on a myth. For sellers, the truth is that buyers decide value, not the seller, the renovation receipts or an online estimate. For buyers, the truth is often less frightening than the myth: you may need far less than 20% down, and Alberta has no land transfer tax.
Seller Scares.
01. “My home is worth what I paid, plus every dollar I put into it.”
The truth. Buyers decide value, and they decide it by comparing your home with similar homes that recently sold nearby. What you paid, and what you spent since, is your history with the home. It is not the buyer’s. Renovations can absolutely add value, but rarely dollar for dollar, and projects built around personal taste, like a bold kitchen or a themed basement, often add less than they cost.
02. “Price it high. We can always come down.”
The truth. A new listing gets its most attention in its first weeks on the market, from buyers who have been watching and waiting. Price it above the homes it is competing with, and those buyers book showings somewhere else. An overpriced home often ends up making the competition look like a bargain. And once the price comes down, buyers start wondering how much further it will go.
03. “The online estimate says my home is worth more.”
The truth. Automated estimates work from public records and nearby sales. They cannot walk through your front door. They do not know about the renovated ensuite, the water stain in the basement, the busy road behind the fence or the view off the deck. That is why they can miss in either direction. A real number comes from someone who has seen the home and the homes it is up against.
04. “Buyers will see past the clutter and the dated paint.”
The truth. Most buyers meet your home in the listing photos before they ever step inside, so the first showing happens on a phone screen. Clutter, worn paint and dark rooms do not just look tired online. They give buyers a list of things to fix, and buyers tend to subtract that list from their offer in their heads. Small, inexpensive fixes are usually the best money a seller spends.
05. “Nobody buys a house in the fall or winter.”
The truth. People move year round in Calgary and Airdrie, for new jobs, relocations and changes at home that do not wait for spring. Buyers who are out looking in November usually mean it. And with fewer homes listed in the cooler months, a well priced, well prepared home can face less competition than it would in May.
Buyer Scares.
06. “I need 20% down to buy a home.”
The truth. Not on most homes. Since December 2024, homes priced under $1.5 million can be bought with an insured mortgage, and the minimum down payment is 5% of the first $500,000 plus 10% of the portion above that. On a $600,000 home, that works out to $35,000, not $120,000. Putting down less than 20% does mean paying for mortgage default insurance, which is usually added to the mortgage. Homes at $1.5 million or more still need at least 20% down.
07. “I’m pre qualified, so I’m good to go.”
The truth. A pre qualification is an estimate based on what you tell a lender. A pre approval goes further: the lender checks your credit and documents, and usually holds a rate for a set period. Even then, the final approval comes after your offer, once the lender has reviewed the property itself. Between the offer and possession day, hold off on changing jobs, opening new credit or financing a new vehicle. Our mortgage pre approval page explains what to gather.
08. “Offer way under asking. The worst they can say is no.”
The truth. The worst they can do is not answer at all, and the home you wanted goes to someone else. A strong offer starts from what comparable homes have actually sold for, not from the list price. Sometimes the numbers do support an offer under asking, and when they do, we will tell you. The point is to let the evidence set the number, not a hunch.
09. “Alberta has no land transfer tax, so closing costs are nothing.”
The truth. Half true, which is the scariest kind. Alberta has no land transfer tax, but Land Titles registration fees do apply: $50 plus $5 for every $5,000 of the purchase price to transfer the title, and the same formula on your mortgage. On a $500,000 home with a $400,000 mortgage, that is $550 plus $450, or $1,000. Add legal fees, title insurance, a home inspection and adjustments for property taxes the seller has already paid, and budget for all of it before you write an offer.
10. “It’s brand new. Nothing can go wrong.”
The truth. New homes in Alberta come with real protection. Under the New Home Buyer Protection Act, every new home carries minimum warranty coverage of one year on materials and labour, two years on delivery and distribution systems like heating, plumbing and electrical, five years on the building envelope and ten years on structure. But a warranty only helps with the defects someone finds and reports in time. Many buyers book an independent inspection before possession, or before the first year of coverage runs out.
The scariest thing in real estate is rarely the house. It is a decision made on a myth.
Trade The Myth For The Facts.
If you are thinking of selling in the next year or two, our free Pre Sale Walkthrough is a home preview with honest advice on which updates are worth doing, which to skip, and what the homes around you are really selling for. No obligation, and no pressure to list.
If you are thinking of buying, start with the numbers. A pre approval tells you what you can spend, and we will walk you through what homes in the communities you love are actually selling for.
Common Questions.
Is my home worth what I paid plus what I spent on renovations?
Not necessarily. Buyers decide value by comparing your home with similar homes that have recently sold nearby. Renovations can add value, but rarely dollar for dollar, and projects built around personal taste often add less than they cost.
Do I need 20% down to buy a home in Canada?
No. On homes under $1.5 million, the minimum down payment is 5% of the first $500,000 and 10% of the portion above that, with mortgage default insurance required when you put down less than 20%. Homes at $1.5 million or more need at least 20% down.
Does Alberta have a land transfer tax?
No. Alberta charges Land Titles registration fees instead: $50 plus $5 for every $5,000 of property value to transfer the title, and $50 plus $5 for every $5,000 of the mortgage to register it. Legal fees, title insurance and property tax adjustments are separate.
Do new homes in Alberta come with a warranty?
Yes. Alberta’s New Home Buyer Protection Act requires minimum coverage of one year on materials and labour, two years on delivery and distribution systems such as heating, plumbing and electrical, five years on the building envelope and ten years on structure.
Is it a bad idea to sell a home in the fall or winter?
Not necessarily. People move year round for work, relocation and life changes. Fewer competing listings in the cooler months can work in a seller’s favour when the home is priced and prepared well.
Got A Real Estate Myth Keeping You Up At Night?
Ask us. We will give you the straight answer for your home and your community. Call or text 403.809.4639.
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Down payment rules reflect the federal mortgage changes in effect since December 15, 2024. Land Titles fees reflect the Alberta schedule in effect since October 20, 2024. Warranty coverage reflects the minimum required under Alberta’s New Home Buyer Protection Act. This post is general information, not legal, mortgage or financial advice, and not a prediction of what any home will sell for.