Busting the myth about down payments

Fact from fiction

We hope you had a terrific holiday. We sure did, and we are back and ready to take on a subject that we absolutely can’t stand… misinformation!

There are so many myths floating around about the housing market, and today, we’re going to bust a big one–the myth about down payments.

Many people think you need to put down 20%, but as you’ll see below, that is a bunch of bull! In fact, in many cases, it’s FAR lower than that.

This is the kind of valuable insight agents should share with their buyers. It can truly be the difference between making the sale or not!

With that, let’s dig into today’s Blueprint.

- James and David

New listings and pending sales fall as home prices reach a record high

The median sale price hit a record high of $400,125 during the four weeks ending June 29th. Meanwhile, new listings fell 1% year over year, the first decline in nearly six months, and the weekly average mortgage rate fell to 6.67%, its lowest level since early April. That’s according to Redfin’s latest market update. Here’s what else they report from June:

• Mortgage purchase applications were up 16% YoY

• Touring activity is up 32% since the start of the year

• Google searches for “home for sale” hit a 12-month high

• Pending sales were down 3.2% YoY, the biggest drop in nearly 4 months

• New listings were down 0.7% YoY, the first drop in nearly 6 months

• 28.4% of homes sold above list price, down from 32% a year ago

Our take

What we’re seeing is a classic case of misalignment: buyers are cautiously re-entering the fray, but sellers are stepping back. Chalk that up to slow demand and mixed signals coming from the market. If you’re an agent, your job is to bridge that gap. Help sellers see the signs of activity beneath the surface, and help buyers move quickly before rates or prices shift again.

Buyer misconceptions about down payments

Many buyers still believe they need 20% down to purchase a home. However, according to a recent NAR analysis, that hasn’t been the norm in years. Since 2018, the typical down payment for first-time buyers has ranged from just 6–9%. It’s different for repeat buyers, who typically put down 23% in 2024, up from 13% in 2014.

Here’s the breakdown of how first-time buyers funded their down payments:

• 69% used savings

• 25% relied on gifts or loans from family/friends

• 21% tapped assets like stocks, 401(k)s, or crypto

• 7% used inheritance—a record high

Our take

While there are many interesting data points in this report, here’s one that truly grabbed our attention: 97% of buyers turn to family, not their agent, for financing advice. That’s a huge missed opportunity. Educating clients about their down payment options, debunking the 20% myth, and explaining low-down-payment loan programs is how agents provide value and build trust. Don’t let Uncle Bob fill that gap; step in and lead the conversation!

Housingwire’s top lead-gen sources

HousingWire has recently released its list of the top real estate lead generation companies for 2025. This ranking is based on factors such as pricing, reviews, features, and the quantity, quality, and type of leads. Here is their list:

1. Placester

2. Zillow Premier Agent

3. Zurple

4. iNCOM

5. Sold.com

6. AgentFire

7. CINC

8. Sierra Interactive

Our take

While we’re big believers in organic lead gen, we think these digital tools can help take your business over the top. As we head into the second half of 2025, it’s time to hit the gas. Platforms like these can really give you that boost. If you aren’t aware, we’ve launched our terrific Agent Growth Program to help you do just that. We built this program specifically to help agents boost their online presence and create stellar personal brands that make them stand out from the pack. It’s not just about how to make online content, but how to make online content look good. Scroll down to today’s Foundation Plans for more details.

Schematics

The news that just missed the cut

• The “Big, Beautiful Bill” just passed. Here’s what it means for real estate. 

• Don’t expect a rate cut by the Fed this month.

• How to maximize a home’s resale potential.

• The U.S. is losing its largest group of international buyers.

• Homeowner’s insurance premium rates are going up in every state.

Foundation Plans

Advice from James and David to win the day

As we mentioned last week, midyear is the perfect time to pause, assess, and reset. What you do now will shape how you finish the year and launch into 2026. In the next few editions, we’ll give you practical strategies to finish strong. 

Let’s start with a simple benchmark – by this point in the year, about 60% of your annual business should be under contract or closed. So, where do you stand? 

If you’re ahead of your goal – Great! You’re executing well. But don’t rest on your laurels. Instead, capitalize on the momentum. Keep doing what’s working, and do more of it! For example:

• Close one extra deal this month

• Take three new listings in the next 90 days

• Double down on lead sources that are already working

If you’re on track – Good job. But don’t coast. Ask yourself these questions: Did you account for seasonal shifts in your forecast? Is your current pace sustainable, or do you need to push harder next quarter? Here are some ways to fine-tune your approach:

• Make one more appointment each week

• Boost your conversation count

• Tighten your tracking to catch issues early

If you’re behind – Don’t panic, but don’t wing it either. "Catching up" isn’t a strategy. Make a clear, tangible plan to get yourself back on track:

• Set a clear goal for the rest of the year

• Break it down: monthly, weekly, daily

• Know your metrics: conversations, appointments, offers, and conversions

• Adjust weekly if you fall short

• Example: if you want to sell 6 homes this quarter, ask yourself:

  • How many appointments do I need?

  • How many conversations to get those?

  • How many offers are needed to close 6 deals?

We encourage you to read these posts from fellow agent Tom Toole. His excellent advice inspired our own thoughts on the matter. Lastly, as we mentioned above, if you’re looking to drive leads to your business, check out our Agent Growth Program. It’s our signature content and strategy service designed to turn top agents into standout personal brands. We help you show up consistently with short-form video content that not only looks good but also drives attention, builds trust, and grows your real estate business. Click here to learn the details

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“Your time is limited, so don’t waste it living someone else’s life.”— Steve Jobs

Each day is a gift – a chance to live the life that you want. Ruthlessly focus on your goals. Don’t let your past or the fear of being judged distract or paralyze you. Choose to live your life with an integrity that you can be proud of.

- James and David