5 Reasons to Stop Renting

Why should you buy instead of rent? Today, I’ve got five key reasons why you should stop renting and start on the path of homeownership instead.

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Why should you buy instead of renting? Even if you think today’s market prices are a little too high, buying is still preferable over renting. There are five key reasons why this is the case.

1. You can do anything you want with the property. Renting a property makes it a lot more difficult to add personal touches or have much pride of ownership. Painting rooms, putting in flooring, or making other updates you would like are all things you won’t be able to do in a rental property. In a property that you own, however, all of these things and more are possible. When you buy a home instead of renting one, you are not only putting a personal touch into your living space, you’re also adding value.
2. The appreciation benefit. First-time homebuyers are typically going to be purchasing their home by using the FHA loan, which requires only a 3.5% down payment. Let’s say you’re buying your first home for $200,000. 3.5% of that is actually just $7,000. With that being the case, you’re really only paying $7,000 up front for a $200,000 investment. This works well to your advantage because of the leverage you have in terms of appreciation. You simply don’t get this kind of investment out of renting.
3. The mortgage stays the same. In even the past few years, rent has risen dramatically. However, if you get into a fixed-rate mortgage, you can be certain that your payment will stay the same. This will make it easier for you to budget on a monthly basis without worrying about uncertainties.
4. Forced savings. A large portion of your mortgage payment goes toward interest, but some does go towards the actual principal of the mortgage. As you pay down this interest, more money will be able to go towards principal in years to come. A way to help achieve this is by making just one extra payment a month. If we assume your payment is $1,000 a month, paying just an extra $1,000 per year will knock off approximately nine years from your mortgage.
5. The tax benefits. While this one isn’t as large a benefit as the others, it certainly acts as an added bonus on top of the other, additional factors we’ve discussed.

Now is the time to make the switch from renting to buying.

Prices may be up, but interest rates are down. Now is the time to make the switch from renting to buying.

If you have any other questions or would like more information, feel free to give me a call or send me an email.

3 Ways to Attract Higher Offers From Buyers

There are certain things that all buyers want to see in a home. Here are three of them.

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Home sellers have a lot more control over the home buying process than they think. There are certain things buyers typically want in a home which the sellers have control over. Here are three things that most of today’s buyers want:

1. Curb appeal. They want to be able to pull into the driveway with a sense of pride, and they want the first impressions of others to be the same. Good landscaping and groundskeeping are important. Planting grass right now is a good idea if you have any bare spots. It’s been raining so much you probably won’t have to water a lot.

2. Space. We have very few people who are looking for a smaller home. Most buyers, especially move-up buyers, are looking for extra space. Therefore, we need to maximize the space you already have. We do this by getting rid of all the knick knacks and extra furniture.

Very few people are looking for a smaller home.

3. Updates. This is probably the No.1 thing buyers are looking for. They aren’t necessarily looking for a brand-new home, but they are looking for pride of ownership. If you’ve updated the home consistently over the years, it will stand out in the buyer’s mind. Fixtures, counters, and flooring are all things you can replace that won’t break the bank, but will increase your final sale price.

If you have any questions for me about what else buyers in this market are looking for or if you’re interested in buying or selling a home, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.