{"id":4457,"date":"2023-06-26T20:42:57","date_gmt":"2023-06-26T20:42:57","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/06\/26\/14-ways-to-tell-clients-that-buying-is-still-better-than-renting\/"},"modified":"2025-03-13T02:51:51","modified_gmt":"2025-03-13T02:51:51","slug":"14-ways-to-tell-clients-that-buying-is-still-better-than-renting","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/06\/26\/14-ways-to-tell-clients-that-buying-is-still-better-than-renting\/","title":{"rendered":"14 ways to tell clients that buying is still better than renting"},"content":{"rendered":"\n

Agents and brokers, are you wondering how to speak to your buyer prospects? What about your listing prospects<\/a> who are also buyers? Is it still a great time to\u00a0buy a home? Stop avoiding the conversation because you’re freaked out about the \u00a0shifting market. \u00a0<\/p>\n\n\n\n

1. Interest rates are higher than in the pandemic years, but they\u00a0are historically <\/em>low. <\/strong>A global pandemic where the Fed throws money at the\u00a0economy and simultaneously drives interest rates<\/a> to the lowest ever recorded is\u00a0not normal. Lock in your rate now and, if it goes up, you\u2019re locked in. If it\u00a0goes down, you refinance. Date the rate, marry the home.\u00a0\u00a0<\/p>\n\n\n\n

The average 30-year mortgage rate in the U.S. averaged 7.74% from 1971 to 2023. The all-time high rate was 18.63% in October of 1981, and the record low\u00a0was 2.65% in January of 2021.\u00a0\u00a0<\/p>\n\n\n\n

2. In today\u2019s market, you may <\/em>be able to negotiate with sellers who have been\u00a0on the market more than 30 days<\/strong>. You may even be the only offer they\u2019re considering, You can have the home inspected, possibly re-negotiate to handle any repairs, and maybe even pay less than 100% of the list price, and even get the seller to pay<\/a> your closing costs. Additionally, you\u2019ll actually have more than one\u00a0home to choose from as inventory slowly increases. <\/p>\n\n\n\n

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Note<\/em><\/strong>: Do your homework on the listing before<\/em> <\/em><\/strong>you make assumptions. There are still bidding wars out there, but there are also expired listings, longer days on the market listings, and sellers who are more motivated today than they were when they were freshly listed.\u00a0<\/em><\/p>\n<\/blockquote>\n\n\n\n

3. Inflation will cause home prices to continue to rise. <\/strong>Waiting means your purchase price will probably be higher and so will your down payment requirement since it\u2019s\u00a0based on a percentage of the purchase price. Your ratios could also be too high\u00a0since the payment will be higher if you wait. \u00a0<\/p>\n\n\n\n

4. If you\u2019re paying rent, you\u2019re paying 100% interest, building zero equity and you have all of the risks.\u00a0<\/strong><\/p>\n\n\n\n

5. When you pay rent, you\u2019re not locked into anything <\/strong>for more than a year, two\u00a0years if you\u2019re lucky. The owner<\/a> can sell the home, raise your rent payment or simply not renew your lease. \u00a0<\/p>\n\n\n\n

6. When you pay rent, you\u2019re virtually guaranteed to be paying more next\u00a0year <\/strong>unless you want to move, assuming the owner still wants to lease to you. Don\u2019t forget the cost of moving! You can\u2019t just refinance or\u00a0renegotiate your rent payment.\u00a0<\/strong><\/p>\n\n\n\n

7. When you purchase a home, you\u2019re securing an asset and releasing yourself\u00a0from the liability of renting. \u00a0<\/strong><\/p>\n\n\n\n

8. Owning real estate allows you to have more versatility <\/em>of the asset. <\/strong>You can live in it, rent it, make it a vacation rental, refinance and pull equity from it, home office in it, or sell it.  <\/p>\n\n\n\n

9. If you can only afford to purchase a home at a lower mortgage interest rate,  you still have options: <\/strong><\/p>\n\n\n\n