The WSJ has taken anecdotal stories of HOMEowners becoming Renters and WHY and put it in a form that most real estate agents should be able to understand.

Agents wanting to talk REALITIES with renters need to UNDERSTAND why former HOMEowners now want to be renters.

1.  The potential for their home being an INVESTMENT is OVER and renters and current HOMEowners know this.  

Renters with children who may want to move in the next 3 to 5 years to keep their children in the schools of their choice * Renters who are 3 to 5 years from retirement may want to rent so they can RETIRE and possibly BUY in their ultimate retirement location *  Renters who are in the area for a few years of school, training or job assignment * these all won't be HOMEowner candidates.

These renters KNOW that any increase in value may well be eaten up with the "costs" of their purchase and sale.  

They also know that their ultimate sale may take YEARS and not MONTHS so keeping a home SHOW READY for an extended period will hamper family life as well as hobbies, work-from-home options and pet ownership.

2.  Renting is actually MORE affordable.  While agents may show rent v mortgage rates to show ownership is LESS costly, they fail to show the cost for componants of HOMEownership like HVAC systems, appliances, roofs and landscape repairs and UPgrades.  

In the case of condo ownership, maintenance fees NEVER go down and there is always the risk of special assessments for unknown events or when the condo management is caught unaware of potential for liability.  

Agents who make these same old arguments for HOMEownership do themselves and their potential clients a DISservice if they do not refine their definition of HOMEowner benefits. 

 

http://online.wsj.com/article/SB10001424052970204294504576615360234056834.html

 

Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.

LandlordWhisperer

View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans


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10 Comments on Agents! Want to Convert Renters to Buyers? UNDERSTAND Why they RENT!

NOV
01
2011
606,242 Points 14 Featured Posts Outside Blog Called Shot Master

Interesting take on the big picture....you provide some very valid points....but in my area at least, it seems that many folks still want to buy if they are renting ....based on the number of calls i get from those who are NOT in a position to buy yet 
1:39pm • #1
945,762 Points 8 Featured Posts Outside Blog Called Shot Master

Interesting points, here...from an investment point of view, it may make sense to rent right now.
1:45pm • #2
122,087 Points 2 Featured Posts Called Shot Master

I think the tide is turning in Boise,  Idaho....Certainly in the last several years you would have been better off being a renter but property values are starting to rise and you can get into a nice home less then the rental rate....

 
2:29pm • #3
645,977 Points 67 Featured Posts Outside Blog Attended Rain Camp

Hi Wallace - I think in the long run owning makes more sense than renting.
3:09pm • #4
226,178 Points Outside Blog Attended Rain Camp Called Shot Master

Wallace -- again the real estate mantra is correct -- Location, Location, Location.  In some areas, rentals work out better than buying and in others the savings are in the other direction.  Good points on why some prefer to rent.
3:50pm • #5
378,625 Points 5 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Wallace, 

Good blog post!  Being on the rental front line, this is exactly what I see as well.  We are seeing many many folks who have money in the bank for down payments of easily 20% +, have 750-815 credit scores and WANT to rent.  Once they factor in maintenance many of them have told me leasing is still a great deal!

Now, there are folks buying, but the trend to rent is rising and will continue to do so. 

All the best, Michelle
5:38pm • #6
1,021,027 Points 65 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

There are real estate agents practically calling renters STUPID for not attempting to buy something NOW * interest rates are low and prices are low.....however, the prospect of sitting with an unsold home for several years when they need to leave is a REAL turn off - RENTING allows flexibility and mobility!
6:51pm • #7
161,786 Points 8 Featured Posts Outside Blog Called Shot Master

Wallace, I couldn't agree more. 

I don't read your point being "renting is better than buying" but rather "buying is not always better than renting."  It seems that "buying is better than renting" is a message that is getting overplayed and relies on too many generalities.

The decision of rent vs. buy is individual to each family/individual and is based upon a multitude of factors that may, or may not, "fit" into a neat little mathematical equation that "proves" anything at all. 

Sometimes, for some folks, it is better to rent and sometimes, for some folks, it is better to buy.  There is no one size fits all answer.
8:05pm • #8
993,231 Points 4 Featured Posts

I am a big advocate for buying I can agree if there is a chance of moving in less than 5 years then you may have a valid point. This market has changed the way people look at real estate it is no longer a piggy bank.
9:45pm • #9
NOV
03
2011
464,256 Points 8 Featured Posts Outside Blog Called Shot Master

Those are some very good points! I have one renter who will be ready to buy in April of 2012. I am waiting with bated breath!
12:25am • #10

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Wallace S. Gibson CPM *

LandlordWhisperer

Charlottesville, VA

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