There is no one-size-fits-all answer when it comes to the big question, “Should I rent or buy a home?” The battle between homeownership and renting has long been a dilemma for many.
As a real estate agent, explaining the pitfalls of renting to your clients can be a challenge. If you sell homes and real property, here’s how to convince your clients to buy a home instead of renting one:
Use Pros and Cons
A lot of people may have negative feelings about buying a home. For a few of them, the thought of buying makes them feel trapped, stressed, and financially troubled. Why? Because, come to think of it, buying a home requires you to leverage a large amount of money for equity, plus, a chunk of your budget should go toward the monthly amortization. You are trapped because you have to consider coming home to it for a number of years in order to get back your investment. You are stressed because you have to maintain the home, including the sewers, kitchen, plumbing, roof, and garden and lawn, plus pay homeowner’s association dues, security fees, and more.
Here’s how to rebut all of these objections:
“Buying a home is an investment”
This may sound cliché, but it is definitely true. Though it can take a long time to convert it into cash, the prices of real estate are always rising. More so, these are investments that are inflation-protected and do not go to zero like stocks sometimes do.
Rent Payments Go Straight to Your Landlord’s Pockets
Plus, your rent payment can increase at any time. Moreover, a yearly contract of $1500 a month can sum up to $18,000, enough for an equity of a semi bungalow house. Think about it.
Yes, you may not worry about maintenance when you rent, but do you get the satisfaction or the right to repaint or remodel your rented flat or home? I guess the answer is no. If you are that person who wants things to be done your way, renting should never be an option.
In addition to that, renting will not give you tax benefits. People who buy houses can deduct the interest on their mortgages from their federal income tax, thus reducing their final homeownership cost. Also, your housing payments stay stable, and you can enjoy tax breaks for homeowners. Plus, you will see where your money is going, and you spend on something you own.
Show Them the Possibilities
May it be through a virtual tour or an actual open house visit, make your client see all the opportunities they can get if they buy a home, and then give them the freedom to decide.
Purchasing a home is a big decision. A lot is at stake and needs to be considered. As any responsible real estate agent, it is your duty to encourage your clients that buying a home is always a smart life and financial move.
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