Buying a home is a big decision…and a big expense. And of course, there are many variables to consider when selling a new home to your buyer. One of the biggest current variables for homebuilders is the rise in interest rates. While interest rates may be at a historic low, increases can have a huge impact on the affordability of buying a home. When you compare that with rent increases nationwide averaging 14.65% per Rent.com, which suddenly makes buying a home look a lot more appealing!
If you're still concerned about the rising interest rates, then you'll love to learn how we help builders find competitive preferred lenders and work with them to pull together programs and forward rate commitments that provides not only the builder great advantage but also their buyers' super deals.
While buying a home is one of the biggest decisions to make, it's also one of the most intelligent financial decisions. According to NeighborhoodScout.com, Reno's annual real estate appreciation rate has averaged 12.47% over the last decade. This places Reno in the top 10% of cities nationwide in terms of real estate appreciation, which means buying a home in the Reno, NV area is an even wiser investment! And this is just one of many markets PresGroup has established themselves in to be a market expert.
Helping Your Buyers Know the Benefits of Owning vs. Renting
There are many benefits to owning a home. Given the current real estate and mortgage market conditions, now is a great time to become a homeowner. Here are a few of the top benefits why your potential buyers should make the leap from renter to owner.
Excellent Long-Term Investment
While the initial purchase of a home is a larger commitment than simply renting, over time, research shows an array of benefits. Although renting can seem like the more affordable option up front, buying a home typically surpasses that value proposition after the first four years. After that, you're helping your buyers build wealth rather than their landlords! As a homeowner, their property value increases, their personal wealth also increases. And with each mortgage payment, they increase their equity in your home.
Greater Financial Stability
When renting, every lease renewal can be stressful. Will the rent increase? Will the landlord sell the property? And if they must move, switching to a new rental can involve moving expenses, additional deposits, and more. Instead, buying a home provides you with a fixed-rate mortgage. This means that they'll enjoy a consistent monthly payment schedule throughout the life of their loan. It's also no secret that rent increases much faster than median incomes (we're looking at you, California). This means that their mortgage can be comparable to or even cheaper than renting a home.
When your buyer owns a home, any modifications they make increases the home's value. When you're a renter, those changes go towards the landlord's home value. As a renter, they're also often limited by the changes they can make. Owning a home offers them more freedom and flexibility to truly design their home to meet their needs and dreams.
At PresGroup, we can help educate your potential buyers through great marketing strategy and value propositions. Ask us today how!