Dear Renters…..Landlords are not stupid! We all hear the media talking nonstop about how bad the housing market is and all is “doom and gloom”, it’s pretty hard to miss! Well apparently those who own rental properties are also listening. Not only are they paying attention to this kind of news, they are also REACTING to it!
According to an article published on Apr 14, 2008 in realtytimes.com, “The first quarter of 2008 makes the 24th consecutive quarter that rental prices have escalated nationwide”. It’s no secret that the housing market is soft and that the mortgage guidelines have tightened up and become stricter, leading more people to consider renting over buying. But many potential home buyers do not realize that they can qualify for a mortgage and that buying a home may be more affordable than renting. This can hold true especially for first time home buyers. Many first time buyers don’t not realize what a huge advantage they have when it comes to purchasing a home. They can be very attractive to a home seller for many reasons. The first attraction is that they have nothing to sell. They can make an offer without a contingency to sell a home first. That is huge! Secondly, many 1st time buyers have the flexibility of closing dates. The seller can pick the date that works best for them and most of the time, a 1st time buyer can accomodate that date…again a huge thing. This in turns makes it easier for a buyer to negotiate price. A seller is going to be more willing to negotiate their price when the buyer can offer them a contract without a contigency on a sale and the closing date the seller wants.
Combine those factors with lower interest rates, more home inventory and sale prices being more affordable, and it makes a Win-Win situation!
So Renters, before signing another lease, paying higher rent, and lining the pockets of your landlord, you owe it to yourself to at least pursue the option of buying!