Why You Should Buy and Sell Residential Properties

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Buyers

Purchasing a property is most likely the biggest financial decision you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully.

Why Do You Want To Buy?

Are you tired of paying rent? Have you decided to pay your own mortgage and not your landlord’s? Have you outgrown your current home? Are you looking for an investment portfolio? Are you looking for a rental property? Would you like a larger yard? Would you rather live in a different area? Do you want to shorten your commute? Having a clear sense of your reasons for buying will help you choose the right property.

Has Your Income Grown?

Property ownership is an excellent investment; whether you are looking for your dream home, a rental property, or to expand your investment portfolio. Owning real estate is one of the least risky ways to build equity or to obtain a greater return on your initial investment.

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Buying vs. Renting – Should You Buy a House or Rent?

Motivation

Buy: Buy if you want to put down roots, start a family, etc.
Rent: If your only reason to purchase a house is to get rich, stick to renting.

Money

Buy: Requires more money up-front. Typically at least 20% of the asking price is needed for a down payment. Otherwise, you may have to pay for mortgage insurance.
Rent: Often requires a smaller, fixed amount each month.

Bills

Buy: It may take years, but you can pay off your mortgage, which eliminates a monthly cost.
Rent: You'll pay every month for life. Unless you're in a rent-controlled building, the price will likely increase every year.

Length of Time

Buy: If you're staying for five years or more, it's often worthwhile to consider buying.
Rent: If you're staying for less than five years, you're usually better off renting.

Commitment

Buy: It takes effort to move. Homes spend a median of 65 days on the market from the time they're listed.
Rent: Freedom to move whenever the lease is up. Can break the lease anytime for a fee.

Savings

Buy: Buy if you'll have emergency savings left over after making a down payment.
Rent: Rent if putting together a down payment would drain your emergency fund.

Risk

Buy: Homeowners face financial risks, both from the economy and the home itself.
Rent: Rent can spike, or your landlord could sell the building, forcing you to move.

Reward

Buy: A home is a hard asset with the potential to provide emotional and financial security into the future.
Rent: Renting gives you more mobility, and you can invest money not spent on the costs of owning a home.

Credit

Buy: If your credit score is 700+, you're in good shape to get the best rates on a mortgage.
Rent: If your credit score is lower than 700, you'll end up paying higher interest rates on a mortgage, but property managers check the credit of prospective renters, too.

Taxes

Buy: It varies by local government but can be quite substantial. That said, mortgage interest payments are tax-deductible.
Rent: Paid by the property owner.

Closing the Deal

Buy: Closing costs are typically 2% to 5% of the purchase price.
Rent: In high-demand locations, you may have to pay a fee to the broker.

Keep in Mind

Buy: You cover all maintenance, repairs, and renovations.
Rent: If you cause damage or are negligent, your security deposit could disappear.

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Sellers

So you have decided to sell your property. Before anything else, it is a good idea to sit down and clarify your motivations and draw up a basic time frame for the selling process.

Why Sell?

Why do you want to sell your property? Do you intend to simply find a larger property, or do you plan on moving to another neighborhood, school district, city, or state? You might think your reasons are obvious, but it would do well to consider the implications of each option for your lifestyle, opportunities, and finances. Being clear about your intentions for selling will make it easier for us to determine the most appropriate option for your specified financial, lifestyle, and real estate goals.

When Should I Sell?

You should immediately establish your time frame for selling. If you need to sell quickly, we can speed up the process by giving you a complete market analysis and action plan to obtain all of your goals. If there is no pressing need to sell immediately, you can sit down with one of our expert real estate agents to thoroughly review the current market conditions and find the most favorable time to sell.

What Is the Market Like?

When you work with us, you can be sure that you will have our knowledge, expertise, and negotiating skills at work for you to arrive at the best market prices and terms. We will keep you up-to-date on what is happening in the marketplace and the price, financing, terms, and conditions of competing properties. With us, you will know exactly how to price and when to sell your property.

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How Do I Optimize My Finances?

Deciding to sell your property demands a serious consideration of your current financial situation and future possibilities. With the help of our qualified agents, you will be able to effectively assess the cumulative impact of these changes, estimate potential proceeds of selling your property, and plan effective tax savings and estate planning strategies. We will ensure that you not only take control of your finances but use them to their fullest potential.