6 Benefits to Buying. Yes! Even in an Uncertain Market

Here are 6 benefits to buying, yes, even in an uncertain market!

 1)  Low Interest Rates:  While rates are not as low as there were in 2021; they are still historically low interest rates, which does help offset some of the impact of higher home prices (especially since their retreat from 7.25%).  As the market continues to soften, interest rates will drop spurring demand to increase and again pushing home prices up further.  First time home buyers waiting to time the bottom perfectly, will end up losing their opportunity to lock in a home price which has come down 10% from the high.  Plus, by taking advantage of our no-cost refinance when rates drop, your buyers will have locked in a discounted price and a low rate, securing a lower fixed monthly mortgage payment.  Win-Win!

2)  Building Equity: Remind first-time homebuyers that with every mortgage payment, they are building equity. This equity can act as a financial cushion in case of unexpected expenses, used to make home improvements, or capitalized on to purchase and leverage additional real estate. Equity is the most powerful wealth builder, which is multiplied when buyers understand and purchase at a younger age.

3)  Forced Savings: Buying a home can be a way to force savings and create a sense of financial stability. Besides the benefit of principle reduction, a fixed mortgage payment each month can help buyers learn to budget and save money in the long-term and help create a sense of responsibility. Unlike paying for a rental which not only goes up every year, it also creates a move often lifestyle and unpredictable future budget impacts.

4)  Tax benefits: Remind first-time homebuyers of the tax benefits of homeownership, such as the mortgage interest deduction, which can lower their overall tax bill and help them save money. With the recent increase to the standard deduction, many tax payers will not benefit from this immediately; however, as they increase their income, start a business, expand their investments, or convert this home into a rental; that property becomes a big tax advantage.  If you need a CPA who understands the tax code advantages for real estate, I have several to refer you to!  For a deeper dive on the tax benefits, check out this video for more.

5)  Long-term Investment: Buying a home is a long-term investment that can appreciate over time. Even if the market is uncertain, over the long-term, the value of the home will very likely increase, providing a strong return on investment. While no-one can predict the future with 100% certainty; historically, real estate has always gone up in value.  Plus, given today’s lack of inventory and strong birthrates through 2006 (i.e. 34 year old homebuyers in 2040), demand will continue to outpace supply, keeping home prices strong.

6)  Sense of Community: Lastly, remind them the sense of community and belonging that comes with homeownership. Buying a home can be a way to put down roots and create a sense of stability in their personal lives and in their communities. This benefit can not be understated, especially in times of uncertainty.

It’s important to note that while there may be uncertainty in the market, buying a home is still a good investment and there are many benefits to homeownership to provide stability and security for first-time homebuyers. As a real estate agent, you have to help your buyers weed through the headlines and fear mongers, securing a path to not only homeownership, but wealth creation through real estate.