Best Tool for Agents Wanting Buyers - What You Pay In Rent

By
Education & Training with Executive Director of Education at eXp Realty

This 'rent calculation' card was why I bought my first home back in 1985.

When anyone sees how much they spend in rent, it's depressing and alarming to see how much it adds up to over time. In my scenario, I was spending $850.00 per month to live in a 2 bdrm Condominium in Martinez, CA. I rented that place from Vince Manzarri for more than 3+ years while working at First American Title in Concord, CA. 

When I saw how much this totaled over time and how much of his mortgage I had been paying, it really made me upset with "myself" for throwing the better part of my salary into someone else's homeownership.

Try it yourself:

1. Write down how much you spend/spent on monthly rent?
2. How long on average do/did you rent?
3. Lookup your monthly rent, then go to the yearly row 

This should be enough to open the door to "ANY" renter for a conversation about the potential of buying a home vs renting someone else's. Remind your prospects and clients that money spent on rent has no tax benefit, can't be recouped, you're paying off someone else's home and for a few bucks more or less, you can own your own!

I created this using Google Drive and a spreadsheet. I didn't factor in equity or interest on money spent, just the raw total of what it costs over time to rent. You would want to make sure you add your branding and contact information to a piece like this, I guaranty renters and first-time buyers will be knocking your door down to buy a home. 

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Comments (53)

Jon Boyd
Home Buyer's Agent of Ann Arbor - Ann Arbor, MI
Ann Arbor Real Estate Buyers Agent

Thanks for the idea Brad. The whole conversation gets a bit more complicated, but this is a great idea to start a discussion!

Mar 28, 2019 11:59 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Brad - when it's there in black and white, the facts are difficult to dispute.  

Mar 28, 2019 12:48 PM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Great post Brad Andersohn ... I will put something together to share online and with Renters!  We need the FACTS ... Thank you!

Mar 28, 2019 01:10 PM
Ken & Velma | The Rohn Group, REALTORS®, GRI®
Dream Team International - Gilbert, AZ
Serving Gilbert, SE Maricopa and Pinal Counties

Great idea, Brad! I'm going to use this for sure. I don't even have to change the branding. 

Mar 28, 2019 02:13 PM
Krista Jenkins, REALTOR®
klm Real Estate - Lubbock, TX
Residential sales and retail & office leasing

Brad Andersohn , this is a great idea. I like how Andrew Mooers | 207.532.6573 put it,"cash in the trash". It is eye-opening when you look at the aggregated numbers. Thank you for sharing.

Mar 28, 2019 04:43 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

I understood this concept a long time ago and was happy to buy a home and stop paying rent.

Mar 28, 2019 10:02 PM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Brad, thanks for sharing. The visual is quick and easy to follow and does not require a lot of talk.

Very helpful.

Thanks

Mar 29, 2019 11:41 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hey Brad:

Thanks for sharing this. The visuals - the video and the chart - are pretty compelling. And I think the average rent is higher than $1800 here so the amount tenants are spending per year can become pretty staggering over time, with little to show for it other than having a place to live.

Have a great weekend!

Jeff

Mar 29, 2019 12:26 PM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I agree with you in principal. The numbers favor home ownership, esp if you can make extra payments.  However, so many pp want to own but can't find decent inventory in their price range,--or, difficult to save up for down payment, closing costs with all the other obligations they have (student loans for one). The middle class is shrinking b/c wages do not keep up with inflation

Mar 30, 2019 11:52 AM
Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
ActiveBrad - 707.646.1876

Thanks for all the great feedback and comments. Mary also makes a great point regarding cost of living, inflation, and income. I agree.

It’s good to know we have many programs out there to assist buyers who have student loans, lower income, bad credit etc. Relocation is sometimes inevitable in life’s journey but can also be a blessing in disguise.

Mar 31, 2019 07:29 AM
Dave Rosenmarkle
Highland Realty, Inc - Arlington, VA
33 years of providing fully satisfying service!

Great reminder! Sometimes I involve a lender to help further crunch the numbers to show possible tax advantages.

Apr 04, 2019 08:41 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

This is a great idea, Brad. I'm going to emulate your idea. It's a good peice to include in marketing materials, or for use at Opens. Thanks much. 

May 23, 2019 11:52 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Brad time to right another post it feels like it has been years:))Endre

May 23, 2019 11:38 PM
Brad Andersohn

Thanks Endre Barath, Jr. - time and life permitting, I'll be sharing more like this in the upcoming weeks and months.

Thanks for staying a committed and faithful follower and friend!! :)

May 26, 2019 12:55 PM
Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525

Brad Andersohn Really Nice Tool, so many uses, will definitely out to use.  Thanks for sharing!

Oct 26, 2019 02:47 AM
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

People will get what they pay for and they pay for a lot with you and it's worth it.

Mar 29, 2021 07:54 PM