Is Now the Right Time to Buy Real Estate?
Hey, Big V here—Verl Workman. Today, I want to talk about something that’s on everyone’s mind: Is now a good time to buy real estate? With rising interest rates, inflation, and all the uncertainty surrounding the election, many people feel stuck and unsure about their next move. And when confusion sets in, it often leads to inaction.
As real estate professionals, we’re uniquely positioned to turn these challenges into opportunities. By providing clear, actionable information, we can guide our clients from a place of uncertainty to confidence. Let’s explore how we can do just that.
Moving Clients from Stuck to Confident
The key to helping clients make the right decisions lies in education. That’s why I’ve developed a system called “To Buy or Not to Buy.” It’s a comprehensive tool designed to help agents and clients weigh the pros and cons of renting versus buying, using real numbers and customized calculators.
Here’s the exciting part: if you’re reading this blog, I’m offering access to this system for free. You’ll get calculators, scripts, and dialogue examples to help clients make informed choices. Just click here to subscribe to my YouTube channel and get access to all of my resources. Remember, it’s not about selling—it’s about serving. When we focus on helping people, everything else falls into place.
Real Estate Is an Activity-Based Market
Let me share a story about Eduardo, an agent who thrived for years during a booming market. When interest rates spiked and inflation took hold, Eduardo noticed his clients hesitating, and his business began to slow. Instead of panicking, Eduardo decided to use the “To Buy or Not to Buy” system to calculate the real financial impact of renting versus buying for his clients.
With his very first client, Eduardo discovered they could save $17,000 per year by buying instead of renting, even with the current higher interest rates. $17,000! That discovery reinvigorated his business and helped him better serve his clients.
Renting vs. Buying: Breaking It Down
Let’s look at the pros and cons of renting and buying. By understanding these, we can better guide our clients toward the best decision for their circumstances.
Pros of Renting:
- Landlord takes care of repairs: No need to worry about unexpected maintenance costs.
- Minimal upfront investment: Typically, renters only need first and last month’s rent.
- Short-term commitment: Renting offers flexibility with shorter lease terms.
Cons of Renting:
- No equity: Every dollar spent on rent goes to the landlord with no return on investment.
- Limited freedom: Renters can’t make significant changes to their homes.
- Rising costs: Rent often increases over time.
- No tax benefits: Renters miss out on potential savings from deductions like mortgage interest.
Pros of Buying:
- Equity building: Each mortgage payment contributes to long-term wealth.
- Creative freedom: Homeowners can personalize their space.
- Fixed payments: With a fixed-rate mortgage, monthly costs remain predictable.
- Tax advantages: Mortgage interest and property taxes may be deductible.
- Potential rental income: Homeowners can generate additional revenue by renting out part of their property.
Cons of Buying:
- Higher upfront costs: Down payments and closing costs can be substantial.
- Maintenance responsibilities: Homeowners must budget for repairs and upkeep.
- Long-term commitment: Buying a home is a bigger financial and emotional investment.
What to Consider When Buying Real Estate
Making the decision to buy or rent isn’t just about personal preference—it’s about the numbers. The “To Buy or Not to Buy” system includes a calculator that factors in everything from tax rates to appreciation potential. Here’s an example scenario:
- Purchase price: $400,000
- Down payment: $40,000
- Interest rate: 6.5% on a 30-year fixed mortgage
- Monthly rent: $2,800
By plugging these numbers into the calculator, we discovered that renting in this scenario would result in a $10,000 annual loss compared to buying. This includes tax savings, principal reduction, and appreciation value.
If you’re not a math whiz, don’t worry. I encourage you to work with a tax advisor or accountant to ensure accuracy. The important thing is to have all the data and use it to make an informed decision.
How You Can Help Your Clients (and Yourself)
By using this system, you’ll have everything you need to serve your clients with confidence. Here’s what’s included on your download:
- The “To Buy or Not to Buy” Calculator: Analyze the financial impact of renting versus buying.
- Scripts and dialogues: Communicate effectively with clients.
- Actionable resources: Help clients move from hesitation to homeownership.
If you’re a real estate professional, I encourage you to subscribe and then download the system and use it to guide your clients.
Turning Challenges into Opportunities
High interest rates and inflation can seem daunting, but they’re also opportunities to educate and serve. By empowering clients with knowledge, we can help more people achieve the dream of homeownership.
Let’s shift the narrative and turn today’s challenges into tomorrow’s successes. Together, we can make a difference—one client, one home, and one decision at a time.
Let’s Get Started!
So, where are you now? Where do you want to go? And do you believe having the right coach can help you get there? If the answer is yes, don’t wait. Click the link below, take the assessment, and start your journey toward success today. I promise you’ll walk away with actionable ideas, whether you join our coaching program or not.
Take our 2-minute Find My Fit assessment to get started!
