Buying Vs. Renting: Share 7 Benefits With Your Prospects

This is the time to communicate with your would-be buyers that now is the best time to consider a home purchase.

If you can explain the following benefits to your prospects, then you should be able to successfully motivate them to move forward with buying a home.

1. Mortgage rates do fluctuate, and they are presently going up. According to the Federal Reserve Bank of St. Louis, the average 30-year fixed rate mortgage rate in June 2021 was 2.98%. In February 2021, the average rate was 2.67%. If you apply these rates to a $200,000 loan, you would be looking at monthly payments of $841 and $808, respectively. If rates continue to edge upwards, your buyers could find themselves having a more difficult time qualifying for their dream home as their monthly payment will be going up.

2. The apparent ongoing seller's market not only creates more competition for homes for your would-be buyers but also continues to drive prices up, which could reduce the purchasing power for your prospects.

3. Unlike renting, it is important to communicate to your prospective buyers that owning a home brings the unlimited freedom to customize their living spaces. It also brings a sense of home stability and permanence.

4. A big selling point for homeownership is the long-term monthly housing cost difference between a fixed-rate mortgage and a lease. Home buyers can more easily plan for future expenses because they know that their mortgage payment won't change. As a renter, this is more difficult to do when monthly rents typically always increase from year to year.

5. With homeownership comes the benefit of tax deductions, which you don't get as a renter. Presently, mortgage interest and property taxes are still tax deductions. Tax deductions reduce a person's yearly income tax liability. Refer your would-be buyers to a tax professional so they can learn the tax benefits of owning a home.

6. Real estate appreciates in value over time. With appreciation comes an increase in a homeowner's equity. This increased equity position gives the homeowner the ability to borrow more money against the home, funds that could be used for everything from paying for college tuition to making home improvements to buying a retirement home. The increase in equity also makes it easier to "step up" to another home because there will be more funds for a bigger down payment on the next purchase.

7. Investigate if your prospects are shying away from buying a home because they feel they won't be able to qualify for a loan. If this is the case, please direct them to us so we can review their financial and credit status. It may be that they only need to do a few things to qualify to buy.

With interest rates remaining at historic lows, we look forward to showing your prospective buyers how they can take advantage of today's homeownership options. Please call or email us for an appointment. GenNEXT Funding is always here to help. Call 732.238.1101 or email?[email protected].