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IS OWNING IN VIRGINIA A BETTER INVESTMENT THAN RENTING? Buyers' FAQ.

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

MY LEASE IS UP IN 3 MONTHS.  SHOULD I BUY OR RENT?  That's a question real estate agents often get from consumers.  The answer is, of course, "IT DEPENDS". 

For the consumer who is renting, buying now may not depend as much on the investment value of buying a home as the prospective home buyer's cash position. 

HOW PREPARED FOR HOME OWNERSHIP ARE YOU? That's the analysis needed.  Home ownership is likely to require:

1.  The credit scores necessary to finance the purchase of your home with a home loan.

2.  Cash to pay the local closing costs to transfer the title from the seller's name to your name.

3.  Cash reserves for moving, utilities, etc.

4.  Cash reserves for unexpected maintenance needs.

THE MESSAGE IS, YOU'LL NEED A CASH RESERVE.  While there are a number of federal, state and local programs that permit most first time home buyers to make that home purchase with a minimum of cash, there will ALWAYS be a need for cash when buying a home. 

Buying a homeWHEN SHOULD I START LOOKING?  The time to consider buying a home isn't when your present lease is expiring.  The time to consider buying a home more likely depends on how long it will take for you to save the necessary cash to pay for the purchase of the home, moving costs and average maintenance costs.

Agent

HOME OWNERSHIP SHOULD NOT BE A QUICK DECISION.  Planning to buy a home is not like giving notice and moving to another rental unit.  Home acquisition requires a thoughtful approach to the saving, planning and search process necessary for a well executed transition from renting to home ownership.  A step by step approach is helpful when making the decision to buy.

SHOP FOR AN EXPERIENCED REAL ESTATE AGENT OR BROKER.  Many real estate agents will be able to guide you through the pre-qualification steps. 

How is my credit?  This is critical and a question that many prospective home owners can't answer. 
How much home am I qualified to buy?  Another question that requires an analysis of your income, debt, credit.
Where do I wish to live?  The answer may depend on transportation needs, school needs, recreation needs, and more.

VehicleLET'S TAKE A TOUR OF HOMES FOR SALE.  Once you and your real estate agent have explored your housing needs verified your ability to buy, you're ready to look at some homes.  

WE CAN HELP!

                                        

Courtesy, Lenn Harley, Broker, Agent, Homefinders.com, 25 years of service to home buyers in Loudoun County, Virginia, 540-822-9907.

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WHEN EXPERIENCE COUNTS, home buyers will enjoy our many years of serving home buyers in Northern Virginia.  We provide buyers with . . .
* Comprehensive home searches in your price range and location of choice for Loudoun County.
* Personal tours of homes for sale.  We are available weekdays and weekends,  
* Comparative Market Analysis for homes under consideration.  We know real estate and will help you determine the value of homes for sale.
* Experienced financial analysis to help you understand different mortgage types and programs to help first time home buyers. 
* Personally manage home inspections, termite inspections, settlement meetings.  We'll be there with you.
AND MUCH, MUCH MORE.

Lenn      search     

Lenn Harley, Broker, Homefinders.com, 800-711-7988

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Comments (10)

John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Lenn - Great points for those who may be considering ownership over renting. As you point out, the answers aren't nearly as clear cut as news stories often portray. Just one more reason for consulting a real estate pro.

May 29, 2012 09:18 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

John.  Absolutely.  I have spoken with far too many prospective home buyers who simply want to move and don't understand that buying a home is not at all like renting.

Valerie.  Seller contribution to buyer's closing costs is routine here in the lower price ranges although today, the lack of seller/owner's equity has changed that quite a bit.

 

May 29, 2012 09:24 PM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Agree Lenn, The home buying process isn't as easy as renting and taking all into consideration before buying is the first step to a successful buying experience!

May 29, 2012 09:35 PM
Bobbie Smith
Stroudsburg, PA
570-242-1891

Excellent post Lenn. Great reminder to Buyers of what they need to remember and be prepared for.

We have been running into a lot lately, that Buyer's have not taken into account the monthly obligation of taxes and Community dues when figuring their budget (and/or mortgage payment amount).

May 29, 2012 09:37 PM
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Such a simple and clear explanation. It's a wonder why so many potential buyers have such a hard time listening to this advice. I just got one of these calls last week. Sometimes the buyer won't know the place they can look to live, until after they know how the answers to all the criteria you mentioned. Cash reserves all aways a plus! I think owning can be better than renting, but it just depends on the buyers situation.

May 29, 2012 09:55 PM
Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

Love that Lenn, it depends on whether the buyer is ready to buy in every aspect.  Just because you want to buy, doesn't mean one can.  Those seeking home ownership after their lease ends would do well to start preparing well in advance, find a Realtor, see where they are at in their financial situation and then get started :)!

May 29, 2012 09:57 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Larry and Sheile.  Agreed.  Many prospective buyers really just want to move.

Bobbie.  Indeed.  I believe the rapidly rise in rents has caused some of the interest in owning.

Jeff.  It ALL depends on each prospective buyers' situation and they are all different.

Brenda.  That's just want every renter needs to do.

 

May 29, 2012 10:36 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Lenn -- excellent points and so well presented.   As Dave Ramsey says without a proper emergency fund it seems Murphy(whatever can go wrong, will go wrong) moves into your home -- be prepared with cash reserves especially for hoimebuyers considering moving from renting to home ownership.

May 29, 2012 11:52 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Michael.  Indeed. 

I begin with "CASH FLOW" from their income stream.  If they have significant excess income over their necessary expenses, they'll be O.K.  If not, they may not.

May 30, 2012 12:00 AM