Teaching Your Clients The Pros & Cons Of Home Ownership
Deciding to buy a home one of the biggest choices your clients will ever face. Homeownership is an exciting experience that can come with a lot of benefits. As you’re working with clients to weigh the pros and cons of buying versus renting, make sure to discuss the factors like what they can afford, how much extra they will have remaining each month, and whether they’re able to invest and stick around.
The first step in helping your clients make an educated decision on whether homeownership is right for them is speaking to a mortgage lender to find out what they can qualify for–they may be surprised by the amount.
Make sure they consider all the costs associated with buying, rather than just the monthly payment on the mortgage. These include closing costs on the loan, HOA fees, insurance premiums, and property taxes.
By adding these together, they’ll have a better idea of how much they can afford to pay per month. It’s also helpful to calculate how much money they will have left in their budget to pay for home maintenance, repairs, and new items they want to put in the home.
Buying a home is an investment that can pay off. Even if your clients don’t plan to stay in the house forever, let them know that they can still earn a profit if home values rise while they live there, or if they put work into the home. Buying is a good option if they plan to stay in the same house for at least a few years and have money to put down on the loan.
Remind your clients that renting costs less upfront, but they’ll be paying into something that offers no return on their investment. They won’t gain any equity on their rented home, which means when they leave, they’ll essentially have nothing to show for what they’ve paid into the place.
With the right strategy and a trusted team of home buying professionals by their side, your clients can get into a home that delivers all the benefits of ownership.