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- Anthony Frisone, "ajfrisone"
- Contributions:355
Mortgage is one bill. What about taxes, landscaping, insurance, etc
- clo1136
- Contributions:3
busting a gut laughing at the answers from realtors
Here was there answer in
2007 buy
2008 buy
2009 buy
2010 buy
2011 still buy
what a surprise...
Here was there answer in
2007 buy
2008 buy
2009 buy
2010 buy
2011 still buy
what a surprise...
- ConnieK_Oklahoma
- Contributions:2899
For some people renting is the best solution. There is no "one size fits all" real estate soltuion out there. If there were agents wouldn't be needed. Some people buy, some rent, some buy to rent to others, some rent to wait for the perfect buy, some rent to have the flexibility to move at short notice, some need someone else to fix the plumbing and windows and whatever else breaks, some want to paint heir walls hot pink or have 6 dogs and dont' want to fear the landlord. some don't have the stable income to get a GOOD loan and shouldn't buy just because they can hunt down the rare lender that will still give them a "great" loan. Some people can't handle the variance of taxes and insurance and need a set amount due for X time period. Some are in the perfect position to buy. making a decision on month to month cost isn't enough information for such a big decision.
- sunnyview
- Contributions:25127
"It's true that most rents are the equivalent of a mortgage so why not own right? "
No, that's not right. In many markets, PITI is still significantly more than rent and prices are still declining to meet local incomes at the traditional 2-3 times salary.
Buyers need to be smart about what they can afford, the direction of their market and in choosing a neighborhood that will be most resistant to future drops or negative changes if they plan to buy now. Many buyers in the last few years who have bought wish now that they had taken the time to do those things before they bought.
No, that's not right. In many markets, PITI is still significantly more than rent and prices are still declining to meet local incomes at the traditional 2-3 times salary.
Buyers need to be smart about what they can afford, the direction of their market and in choosing a neighborhood that will be most resistant to future drops or negative changes if they plan to buy now. Many buyers in the last few years who have bought wish now that they had taken the time to do those things before they bought.
- Georgina OBryan, "GOBryan1"
- Contributions:483
It's true that most rents are the equivalent of a mortgage so why not own right?
The problem seems to be that very few people are actually qualifying for mortgages these days. Most prospects that contact me just don't qualify after they contact a mortgage consultant to run their credit and review their credentials, otherwise, I'd be overloaded with real estate work.
There other issue is just the plain family instability due to relocation, etc. They may be here today but need to move, for work reasons, tomorrow. So many families are in such a limbo right now that until things settle, they don't know which direction their heading.
Then there's the issue that not everyone is cut out or responsible enough to be a homeowner. I've seen so many stop paying their mortgage in order to obtain a modification. They get the modification and sign the agreement or go through the 3 month trial period and then... stop paying again without change in their income from the time they agreed to the mod. Some just think they're going to strong arm the lender into giving them and even better mod.. or their intention is to live in the house for free as long as possible. Should these people have been homeowners?? It's questionable.
Either ways, there's an array of reasons why people aren't buying. My job is to help them sell or buy... not to tell they why they should or shouldn't because I am not privy to their expenses, income or anything in between. I may have my personal opinion but that really doesn't count.
The problem seems to be that very few people are actually qualifying for mortgages these days. Most prospects that contact me just don't qualify after they contact a mortgage consultant to run their credit and review their credentials, otherwise, I'd be overloaded with real estate work.
There other issue is just the plain family instability due to relocation, etc. They may be here today but need to move, for work reasons, tomorrow. So many families are in such a limbo right now that until things settle, they don't know which direction their heading.
Then there's the issue that not everyone is cut out or responsible enough to be a homeowner. I've seen so many stop paying their mortgage in order to obtain a modification. They get the modification and sign the agreement or go through the 3 month trial period and then... stop paying again without change in their income from the time they agreed to the mod. Some just think they're going to strong arm the lender into giving them and even better mod.. or their intention is to live in the house for free as long as possible. Should these people have been homeowners?? It's questionable.
Either ways, there's an array of reasons why people aren't buying. My job is to help them sell or buy... not to tell they why they should or shouldn't because I am not privy to their expenses, income or anything in between. I may have my personal opinion but that really doesn't count.
- HARP 2.0 Washington
- Contributions:5
So are most of these discussion boards just agents commenting on questions that were posted by other agents? Doesn't seem very beneficial to anyone if that is the case...We have agents arguing like kids too...come on guys, take it outside :)
- sunnyview
- Contributions:25127
"Like stated before, the client needs to contact someone they have confidence in to help them to decide."
I don't agree. Buyers need to make their own decision and do not need an agents "help" in making it. Agents are not financial advisors and buyers need to do their own homework to decide whether or not they should buy based on their finances and the available market trend information.
I don't agree. Buyers need to make their own decision and do not need an agents "help" in making it. Agents are not financial advisors and buyers need to do their own homework to decide whether or not they should buy based on their finances and the available market trend information.
- Sam Calderone, "SamsellsMobile"
- Contributions:8
As an agent it's not for me to decide whether or not a person "should" or "should not" rent. The buyer has to able to make that financially sound decision on their own. Most renters either rent because they are unsure of how long they will be in the area, or because they don't have the credit to buy. With the more tightened lending practices it's even more difficult for people who have no money down. Having said all of this, it's still your duty as an agent to explain and show all the statistics to renting vs. buying. Let them make their ultimate decision based on the info you give them.
- Lisa Creasey, "Creasey"
- Contributions:205
Roberto, I see that you are an agent. So does this mean you have told ALL people to buy? Not all agents tell there clients to buy. I am guessing, but I gather that you don't always tell your clients to buy.
Like stated before, the client needs to contact someone they have confidence in to help them to decide. I just think that Realtors Do have the information that can help. Just sad that some don't use the knowledge they have to truely help others out.
Like stated before, the client needs to contact someone they have confidence in to help them to decide. I just think that Realtors Do have the information that can help. Just sad that some don't use the knowledge they have to truely help others out.
Lisa, you might try reading my posts before you answer them. It does help, if you have that much trouble, try a reading class at a local community college!
See the "agent" tag next to my name? that means I'm an agent. I have been an agent for over a decade now, I have watched literally ALL agents both in real life, and in 4 years on zillow, tell every potential buyer that it was a good idea to buy in every market. They did it in 2006, 2007, 2008, 2009... they do it multiple times a day right now. Spend a minute, use the search bar above, type in "is it a good time to buy" see what you find.
Or perhaps you should replay the "susan researched this" ad from 2007. BOY that Realtor sure had a good timed investment call for her clients!
So, given this relatively terrible track record Agents have shown, care to re-explain why asking an agent would be such a good idea as to whether or not you should buy? ..
See the "agent" tag next to my name? that means I'm an agent. I have been an agent for over a decade now, I have watched literally ALL agents both in real life, and in 4 years on zillow, tell every potential buyer that it was a good idea to buy in every market. They did it in 2006, 2007, 2008, 2009... they do it multiple times a day right now. Spend a minute, use the search bar above, type in "is it a good time to buy" see what you find.
Or perhaps you should replay the "susan researched this" ad from 2007. BOY that Realtor sure had a good timed investment call for her clients!
So, given this relatively terrible track record Agents have shown, care to re-explain why asking an agent would be such a good idea as to whether or not you should buy? ..
- Lisa Creasey, "Creasey"
- Contributions:205
Well Roberto, maybe I should have said, Ask a Realtor that you have confidence in. I don't know about the Realtors you are talking about, but if the Realtor abides by the code of ethics and has the client best interest in mind, they Would be the best people to talk to. Check with friends as to who they have used as there Realtor and find out what there experience was with that agent.
Personally, I have a great relationship with my clients and have made many friend who are thankful for the help that I have given them. I receive referrals all the time from satisfied clients.
I am Sorry Roberto that you haven't had a good experience, but not all Realtors. as well as markets, are the same.
Personally, I have a great relationship with my clients and have made many friend who are thankful for the help that I have given them. I receive referrals all the time from satisfied clients.
I am Sorry Roberto that you haven't had a good experience, but not all Realtors. as well as markets, are the same.
Actually NO do not ask a Realtor if you should buy in your market.
you might as well ask a barber if you need a haircut, or a bartender if you should have a drink.
Look at 1000's of postings on zillow over the last 4 years: 100% of the realtors have ALWAYS said "buy" in their market, be it florida, arizona, california, nevada... whatever. They said buy as the evidence piled up that buying was a terrible idea.
you might as well ask a barber if you need a haircut, or a bartender if you should have a drink.
Look at 1000's of postings on zillow over the last 4 years: 100% of the realtors have ALWAYS said "buy" in their market, be it florida, arizona, california, nevada... whatever. They said buy as the evidence piled up that buying was a terrible idea.
- Lisa Creasey, "Creasey"
- Contributions:205
I am a Realtor in the Springfield, IL area! There are so many reasons that buying makes more sense than renting. To name a few are the deductions that you can take when filing taxes. There is mortgage interest, property taxes and some closing costs. Probably the most significant thing (if you buy right and sell right) is that if you live in your home for at least 2 years and you make a profit, you would not have to claim that as income if your profit is $250,000 for a single person and $500,000 for married couples who file joint returns. This can be used once every 24 months.
On the other hand, if you are unsure if you will be staying in a home for more than 2 years, and ideally 5 years, you may consider renting. If the home you are looking at is below fair market value and you can get it at a good price, you might consider buying and if you are unable to sell it consider renting it. Rent is at a premium at this time and it is difficult to find Good rental for clients in the Springfield area. Springfield has been one of the few areas in the country that (for the most part) has been a strong market.
The best thing is to check with a Realtor in your local market to get advice on which would be best for you and your situation.
- dacolan
- Contributions:1073
"If someone does not want the committment, or property taxes, or in some renters minds the burden of home ownership. I get it and I understand. If they are waiting for the home prices to get lower or lower rates, well that is another thing."
This is the part of your original post in this thread that provoked some of the stronger responses I suspect. Beyond fear of commitment, there are economic reasons buying may not be in some consumers best interests.
For example, there are prudent buyers who prefer to avoid buying in a falling market. Additionally, rising rates can put further downward pressure on house prices in a stagnant economy if wages/incomes don't rise proportionately to offset that loss of buying power.
This is the part of your original post in this thread that provoked some of the stronger responses I suspect. Beyond fear of commitment, there are economic reasons buying may not be in some consumers best interests.
For example, there are prudent buyers who prefer to avoid buying in a falling market. Additionally, rising rates can put further downward pressure on house prices in a stagnant economy if wages/incomes don't rise proportionately to offset that loss of buying power.
- Spirit Messingham, "TucsonSpirit"
- Contributions:662
Thank you Rudi and Sunnyview. I understand that Realtors and agents tend to be biased and I respect that not everyone wants to or should buy now. I have empathy for each person's situation.
Sunnyview, thank you for the kind words. I have read a lot of your comments and reviews, you have a wealth of infomation, thank you for all the great contributions.
Sunnyview, thank you for the kind words. I have read a lot of your comments and reviews, you have a wealth of infomation, thank you for all the great contributions.
- sunnyview
- Contributions:25127
"...is now a good time to buy? Well it depends, cause it does. Not just on the market but on each individual person. "
Spirit that is one of the best answers that i have read all day! Thumbs up.
Spirit that is one of the best answers that i have read all day! Thumbs up.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Spirit yours was a considerate response. There are certain folks, mostly the ones that have been on Zillow for some time that can't help themselves. They have read so much or the NAR talking points they are just worn out.
And, many of the agents do not contribute any new or helpful information to the threads. An example is responding to someone's mortgage question. "I don't do mortgages, I'm a Realtor. I suggest you speak to a Mortgage Professional." OR, "I know a great lender. Contact me and I'll give you the contact information." Doesn't matter if the person with the question is in NY and the agent is in AZ.
Spirit, you don't need recognition and no one wins in a argument. Just be helpful. Good things will come from that.
Happy funding, Rudi
And, many of the agents do not contribute any new or helpful information to the threads. An example is responding to someone's mortgage question. "I don't do mortgages, I'm a Realtor. I suggest you speak to a Mortgage Professional." OR, "I know a great lender. Contact me and I'll give you the contact information." Doesn't matter if the person with the question is in NY and the agent is in AZ.
Spirit, you don't need recognition and no one wins in a argument. Just be helpful. Good things will come from that.
Happy funding, Rudi
- Spirit Messingham, "TucsonSpirit"
- Contributions:662
Jal, did you read my reply? FYI not ALL real estate agents are Realtors, there is a difference. Not "ALL" are like that.
Also, FYI "Used Car Salesmen" have ,benefits salaries and etc. Most agents do not. I would be careful making blanketing statements about "everyone" and "all" when that is not the case. My referrals speak for themselves and I made sure to answer the question fairly, not just because I am a Realtor.
It is an opinion question, it would be like "is now a good time to buy"? Well it depends, cause it does. Not just on the market but on each individual person. Each of us has our own tolerance for risk, likes, dislikes and etc.
Also, FYI "Used Car Salesmen" have ,benefits salaries and etc. Most agents do not. I would be careful making blanketing statements about "everyone" and "all" when that is not the case. My referrals speak for themselves and I made sure to answer the question fairly, not just because I am a Realtor.
It is an opinion question, it would be like "is now a good time to buy"? Well it depends, cause it does. Not just on the market but on each individual person. Each of us has our own tolerance for risk, likes, dislikes and etc.
- Kevin O'Shea, "Kevrltr"
- Contributions:212
This is a simple question, with no simple answer. It depends where you are and what your situation is.
There are tax advantages to buying. There is more mobility renting. Long term it is usually better to buy. Short term probably better off renting.
Talk to people you trust and find a Realtor you trust, then you can make a better decision.
Kevin
There are tax advantages to buying. There is more mobility renting. Long term it is usually better to buy. Short term probably better off renting.
Talk to people you trust and find a Realtor you trust, then you can make a better decision.
Kevin
- jal74
- Contributions:1077
And you wonder why we compare realtors to used car salesman, and we treat realtors worse.
Because they are worse. At least the average person on the street understands that a used car salesman is looking out for only, you guessed it, the used car salesman and not their interest in any way shape or form.
Unfortunately, realtors have fooled far too many people into believing that they are a "profession" and thus imply they hold out a duty of care to their clients.
In no way shape or form do they as evidenced by posts and realtor responses such as this.
For shame
Because they are worse. At least the average person on the street understands that a used car salesman is looking out for only, you guessed it, the used car salesman and not their interest in any way shape or form.
Unfortunately, realtors have fooled far too many people into believing that they are a "profession" and thus imply they hold out a duty of care to their clients.
In no way shape or form do they as evidenced by posts and realtor responses such as this.
For shame
- Pasadenan
- Contributions:21450
"You will be paying less for the mortgage than the rent. I promise." -
And what will that "promise" be backed up with? An insurance policy? A bond? A legal contract that will put a lien on her house for any shortages to the potential buyer?
The mortgage payment is not the only cost of owning the house, and is not a good "comparison" to rent as rent includes a lot more things than the mortgage payment does:
1) Property taxes
2) Fire, Flood and Liability insurance
3) Yard Care
4) Maintenance/Upkeep
5) Major capital expenses (such as new roofs...)
6) City assessments (such as sidewalk repair)
7) Mortgage insurance if applicable
8) Return on investment of down-payment (in other-words, the down-payment is not "free" and needs to be factor into the comparison)
9) Closing costs, including agent fees and loan initiation fees...
10) HOA fees
And in some cases, rent also includes utilities such as water, gas, electricity, and trash pick-up service!
And don't forget about that automatic $5700 (single), $11,400 (married), $8350 (head of household) income tax deduction for those that don't have mortgages!
And, for those that decide to buy now, don't forget that prices are still falling, so you will "throw away" any down payment you make and more and you will get to have an "underwater loan" in less than 2 years!
And what will that "promise" be backed up with? An insurance policy? A bond? A legal contract that will put a lien on her house for any shortages to the potential buyer?
The mortgage payment is not the only cost of owning the house, and is not a good "comparison" to rent as rent includes a lot more things than the mortgage payment does:
1) Property taxes
2) Fire, Flood and Liability insurance
3) Yard Care
4) Maintenance/Upkeep
5) Major capital expenses (such as new roofs...)
6) City assessments (such as sidewalk repair)
7) Mortgage insurance if applicable
8) Return on investment of down-payment (in other-words, the down-payment is not "free" and needs to be factor into the comparison)
9) Closing costs, including agent fees and loan initiation fees...
10) HOA fees
And in some cases, rent also includes utilities such as water, gas, electricity, and trash pick-up service!
And don't forget about that automatic $5700 (single), $11,400 (married), $8350 (head of household) income tax deduction for those that don't have mortgages!
And, for those that decide to buy now, don't forget that prices are still falling, so you will "throw away" any down payment you make and more and you will get to have an "underwater loan" in less than 2 years!
- klarek the realist
- Contributions:7044
"Homes are at the lowest price ever"
God what an idiot.
God what an idiot.
- SteadyState
- Contributions:783
Rent now buy after further correction or market starts upward trend (say 2015).
Agents are shocked because renting a home does not generate income for them and gives them a shock instead.
However, consider the situation in Cupertino/Saratoga in CA:
Average Rental Price: $4000-$4500 for a 2000 sq. ft home in good condition
Buying the same house costs you: $1.5M.
This means your property taxes will be around $25K
Closing costs ($60K)+ Realtors comission ($90K): $150K
Min Down payment: $300K
I will continue to rent, thank you and rather agents be shocked than I. There is no way to make financial sense of the numbers. The market must correct further.
Agents are shocked because renting a home does not generate income for them and gives them a shock instead.
However, consider the situation in Cupertino/Saratoga in CA:
Average Rental Price: $4000-$4500 for a 2000 sq. ft home in good condition
Buying the same house costs you: $1.5M.
This means your property taxes will be around $25K
Closing costs ($60K)+ Realtors comission ($90K): $150K
Min Down payment: $300K
I will continue to rent, thank you and rather agents be shocked than I. There is no way to make financial sense of the numbers. The market must correct further.
- Spirit Messingham, "TucsonSpirit"
- Contributions:662
FYI you can not get a loan with a FICO score in the 500s, that is just wrong. If someone wants to get pre-approved, speak with a local lender, not a real estate agent.
I can see both sides of this equation, and it is a lot like stocks and the term "catching a falling knife". If someone does not want the committment, or property taxes, or in some renters minds the burden of home ownership. I get it and I understand. If they are waiting for the home prices to get lower or lower rates, well that is another thing. Rates have started to climb back up and think they will continue to do so. We may not be at the absolute bottom but for many first time home buyers, buying a home is more than dollars and cents.
What I do suggest renters do is make a list of pros and cons. Make sure you have facts straight as there are many benefits to home ownership, tax right offs and etc. Also, lending has severely changed and not everyone can qualify. It is free to find out and a good lender will tell you, show you what to work on if you can't get a loan now, you may be able to in the future.
I can see both sides of this equation, and it is a lot like stocks and the term "catching a falling knife". If someone does not want the committment, or property taxes, or in some renters minds the burden of home ownership. I get it and I understand. If they are waiting for the home prices to get lower or lower rates, well that is another thing. Rates have started to climb back up and think they will continue to do so. We may not be at the absolute bottom but for many first time home buyers, buying a home is more than dollars and cents.
What I do suggest renters do is make a list of pros and cons. Make sure you have facts straight as there are many benefits to home ownership, tax right offs and etc. Also, lending has severely changed and not everyone can qualify. It is free to find out and a good lender will tell you, show you what to work on if you can't get a loan now, you may be able to in the future.
- Vicki Holmes, "Vicki Holmes"
- Contributions:575
With home prices so low and interest rates at a historic low, I have seen buyers recently get a mortgage payment for drastically less than what they were paying in rent.
Additionaly, Wells Fargo can now approve a mortgage for a buyer who's FICO credit score is possibly as low as the 500's.
All worth checking out!
Additionaly, Wells Fargo can now approve a mortgage for a buyer who's FICO credit score is possibly as low as the 500's.
All worth checking out!
- DeAnn Fry Team, "DeAnn Fry Team"
- Contributions:24
Excellent question that everyone should be asking. We, The Fry Team and the Osborn Team of Keller Williams Realty Prof Partners in the west valley of AZ are offering a seminar for those that question: Is it YOUR time to buy? Come and check it out its every 2nd Sunday of the Month at 2pm, excluding holidays. Love to see you there.
- Dan, "the_country_hick"
- Contributions:4693
Mayra, with prices in your area falling still how much would be saved by buying compared to how fast prices have been falling? If I would waste $5,000 a year renting (with no repairs) and house prices fall $7,000 renting makes sense. If I would waste $5,000 renting and house prices were only falling $2,000 the advantage could swing the other way.
- dacolan
- Contributions:1073
Not all areas have reached rental parity, and of those that have, some buyers are wary of buying into a still declining market.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
I think we are in an age were being a renter is a choice. Not because of financial circumstance either. Primarily for mobility. The only item tying them down is a six month or one year lease.
If they are offered better employment or wish to change their geographical environment, it's far easier to move.
Not everyone is striving for home ownership anymore. And, there is no longer a stigma attached, for choosing this life-style.
Happy funding, Rudi.
- Daniel Reynolds, "Broker Executives"
- Contributions:355
Not necessarily for homes priced over 500k. Est. payment 2600-3200 piti HOA, @ 5.1APR. Properties like this rent all day long for less than that. Estimated lease payment for this size home is 2400. That's a 25% reduction in payment vs. lease. The percentage spreads even further the higher up in price you go. I'm sure this isn't true for lower priced properties. Your calculation should account for all types of properties.
Buy or Rent?
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