Real Estate Blog - IT ISN'T ALWAYS ABOUT THE COMMISSION. THERE ARE GOOD REASONS FOR RELOCATING HOME BUYERS TO BUY RATHER THAN RENT.

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IT ISN'T ALWAYS ABOUT THE COMMISSION. THERE ARE GOOD REASONS FOR RELOCATING HOME BUYERS TO BUY RATHER THAN RENT.

SELL A HOME RATHER THAN RENT ONE? There may be very good reasons.

AGENTS: DON'T DENIGRATE YOURSELF BECAUSE YOU SOLD A HOME TO RELOCATING HOME BUYERS.

I WON'T HOLD IT AGAINST YOU!

I read a post on ActiveRain this morning castigating agents for selling a home to a relocating family rather than renting them a house. Trying to make me feel guilty is a total waste of time. If my mother-in-law couldn't do it, no one can. I suppose it was the rather sanctimonious tone of the post that got my attention. Interesting. I don't agree and that may be because our markets are so different. Sure, real estate is slow, that means that there are some wonderful opportunities out there for our relocating home buyers.

Further, for most relocating families, renting now simply means moving again in a year and we can't see into the future. Also, if there are children, it could mean changing schools again. If you've ever raised teenagers (5 of them for me), you know that to a teenager, their friends are often their life. Move a teen and you risk ripping their heart out. Also, in my area, it's often hard to find rentals in some school districts that suit a family where they may be buying a year from now.

Finally, what about the mortgage interest tax deduction? That means a lot to higher income buyers. tulips

Then there's the matter of planting those spring bulbs and annuals. Too late to plant tulips here now, but next year???? Who wants to plant a border of Zinnias in a rental?

IMO, it is a very rare case when a rental is desireable over buying a HOME.

The exception for me is active duty military transferrees. They have no knowledge of how long they will need to own a home. I recommend that active duty military transferees rent rather than by and have since 2005 when I saw the market stall and knew that the average home price has exceeded the ability of the average home buyer to qualify.

Courtesy, Lenn Harley, Broker, Homefinders.com. Serving home buyers in MD and Northern VA.

Posted by Lenn Harley, Real Estate Broker, Maryland & Virginia on 12/08/2008 10:56 AM

Comments (19)

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Originally posted at: MD, VA Foreclosures, First Time Buyers Grants, CDA Loans MD, Rehab Loans MD & VA: IT ISN'T ALWAYS ABOUT THE COMMISSION. THERE ARE GOOD REASONS FOR RELOCATING HOME BUYERS TO BUY RATHER THAN RENT.

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19 Comments on IT ISN'T ALWAYS ABOUT THE COMMISSION. THERE ARE GOOD REASONS FOR RELOCATING HOME BUYERS TO BUY RATHER THAN RENT.

DEC

I guess it really is important to take each person case by case depending on their needs.

If someone has the means, I believe it is always better to buy. Buying is the start of building wealth and I encourage anyone thinking about buying to do so if they have the means.

Nate Rowe Homes in Richmond VA

www.NateRowe.com

It depends on the circumstances ..for even military. The majority of my clients are military. There have been a few who want to rent rather than buy....the last couple of transacations I closed are going to retire here...and the one in contract right now don't want to 'waste their money' (housing allowance they receive from the government) by paying someone elses mortgage. They would rather have their own home where they don't have to worry about someone selling the unit, raising their rent, and planting (like you said) whatever they want. You'd be appalled at the condition of some of these rentals... and even the base housing. If you received over 3k a month in free money for housing what would you do with it?

It will always depend on the circumstances. It's up to us to give them the information ...good or bad....so they can make a uniformed decision how they want to spend their money.

Sally. YOU ARE ABSOLUTELY RIGHT. In your market with the housing allowances military folks receive, it will usually be smart to buy. Your market is quite different from ours. In your market, I'd be selling to military too.

Nate. Me too. Me too.

Steven. Of course. However, agents have no reason to feel guilty when they sell a home.

Hi Lenn! My investors would say, "Now don't tell them to get their own mortgage! I want them to pay MINE!" My advice--Why would you want to pay someone else's mortgage for them unless there were dire financial reasons or, as you stated, uncertain military or others who don't know how long they'll be in one place!

Debe in Charlotte

Lenn, my mother-in-law couldn't make me feel guilty either. :-)

I wrote some thoughts in an ActiveRain blog about having to move because of a landlord's whim. It is always better to control your destiny, I believe, if at all possible.

Sarah Rummage
Nashville TN
www.HouseInNashville.com

Lenn, you are right that we have no right to impose our opinions on our clients. If they choose to buy a home because they think it's best for their family, let them! And gladly help them select the best house for them.

Join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualoffice

Regina P. Brown
Allison James Estates & Homes

That is so true, Lenn, especially in this market unless they think they may get transferred again in the short term.

Lenn - I have relocated multiple times in my life, and will admit, the early relocations, which included 6 military transfers, were always rentals. After that they all included home purchases, including one with the military which I knew would be my last tour. I think, perhaps, in some situations we owe those relocating the discussion about renting, but, in general, I certainly don't feel guilty selling them a home.

When we relocated from Michigan to Illinois 7 years ago we bought a house. In retrospect, we should have rented because we ended up not liking the area and having to sell the house and move one year later! It is very difficult to accurately choose an area with a short time frame and all the pressure of selling the old house, getting situated in a new job, and getting the kids settled in a new school. My advise to relocating clients is to NEVER SETTLE! Don't feel pressured to purchase a house. It's a big decision and if you can't find the right house, then it's best to rent and keep looking.

Debe. Indeed. However, I don't even work with investor buyers. I work with HOME buyers.

Sarah. Absolutely. Control your own destiny and the color of the walls in your living room.

Regina. Thanks. I did join. I'm not much on groups. I usually get reprimanded or sent to the guidelines. I'll give it a try.

Lenn--I agree that no one should feel guilt over assisting a relocation client in finding and buying a home. Things do change...The market could go up again too. If the client sees a house they are interested in buying, why not sell the house? Some people rent year after year and lose money right along with the buyers. I don't have a crystal ball and neither does anyone else. So who says waiting is better? I say, let the clients decide!

Teri. Thanks. I agree. Besides, there are so many wonderful aspects of having a home rather than renting something, I am anxious to help relocating folks settle into a HOME.

Oh, good...I was getting a complex lol!

I don't see nothing wrong with helping a prospective tenant become a new home owner if all conditions are either equal or better for them.

Lenn, I love this blog. You make a great point. It is very hard to see renting as being more desirable than home ownership. I think some people get the idea in their mind that home ownership is for people who are planning to live in said home for at least 20 years. That doesn't have to be the case.

DEC

How about the fact that interest rates are nearing all time lows? There are many reasons why home ownership has its merits.

Great post. I also feel that too many in real estate view a home as an investment rather than a shelter for their families. I can not for the life of me remember my parents talking about what homes were selling for in the neighborhood. It just wasn't part of the picture. There are many reasons for owning rather than renting, and one of them is safety. It isn't always about the money.

DEC

A lot of my fellow agents think that I am crazy to spend my time with renters at all considering that you spend almost as much time finding a nice home to rent as you do for a buyer. I treat all of my renters just like my buyers, as I know that they could be buyers in the very near future.

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