Leah Azizian is back and she is giving us some of her thoughts on renting. While most agents are focused on sales, and rightfully so, it's also important to have the pulse on rentals. Having knowledge on the rental market is key when it comes to being a well rounded agent.
Below is our interview with Leah!
Why Can Renting Be More Appealing than Buying? Can We Change That?
Elite Informer: I would love to hear your expansion on: is there a way to make buying more appealing than renting?
LA: I would say, as an agent, a great way to make buying more appealing than renting and to encourage your clients to considering purchasing would be to actually break down costs. From the down payment, to the closing costs, to the monthly estimated payments. Renters tend to underestimate their purchasing power. Or, get too comfortable within the confines of renting. Working with an agent who actually guides you through the process, and acts more as an advisor and informer, which is our true role, goes a long way in helping buyers understand the advantages and disadvantages to owning.
I'd also like to add, that with the interest rates still being so low, this is when as an agents we really have to step up to the plate and talk to our clients about whether owning could be in their best interest. A lot of purchasers don't understand the affect that interest rates have on different price ranges. A $900,000 purchase, for example, compared to a $1,100,000 purchase, when financing, has a trivial monthly mortgage difference because the rates are so low. And this is not just exclusive to these price ranges specifically. I've come to see how pleasantly surprised my clients are, when we do the math and they realize how a $200-300,000 price difference is more affordable than they thought, because of the low rates.
Experience and Advice
EI: Any firsthand agent experience with renting vs. buying?
LA: Yep, mentioned it in the second paragraph above. Coming across a handful of personal clients who appreciate understanding the power of the low interest rate and the effect that it has on their purchasing power. Money is so cheap right now that I am encouraging even my cash buyers to consider getting a small mortgage.
EI: How about finding a client good rentals?
LA: I am not so active on the tenant-rental side. I work more actively on the landlord-relationship side. However, for an agent who is building the bulk of their business through working with tenants - I would suggest staying active on most rental platforms (Streeteasy, Zillow, Realtor). Building close relationships with rental listing agents as they will share with you their off market listings / listings before it comes to market. This will give you a competitive edge to your clients. For those agents who enjoy hitting the pavement, I would suggest even building relationships with different landlords in their neighborhoods of focus. There's no better way to find off market deals, than to go directly to the source!
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