Posts in category 'Buyers'

Buying a Home Requires Less Income Than Renting a Home (~20% less income)
If you are renting a home in Northern Virginia and you think you can't afford to buy a home - THINK AGAIN - buying costs significantly less than renting.  This is surprising to most people, BUT YES, it generally takes less of your income to buy a home in Northern Virginia than it does to rent a home.  In fact, historically across the U.S. it requires 21% of the median income to purchase the median priced home.  This compares to 26% of the same income to rent the same home.  The difference of five points doesn't seem like much, but it's 19% of one's income - no small amount.  In the Northern Virginia region it takes relatively more income to purchase and rent, because our housing cost is relatively higher than the U.S. average.  However, the spread is still the same as shown in the example below.  Most renters don't realize this, but once they do, it opens up all types of fantastic possibilities for them in terms of home ownership and wealth creation.  I frequently remind renters, you're technically paying a mortgage when you rent, it just happens to be the property owner's mortgage.  Why not make it yours instead?

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There are Numerous Benefits to Owning a Home Compared to Renting
In previous articles, I addressed the numerous benefits of buying a home in Northern Virginia compared to renting.  I showed that it surprisingly takes 20% less income to buy a home than it does to rent the same home. The U.S. tax code favors home ownership. Owning a home has several qualitative benefits including stability, positive impacts on child development and school performance, and fulfillment of the American dream.  Many renters are under the misconception that a mortgage loan is out of their reach and it requires a large down payment.  I also showed buying a home can be done with little to no down payment and across a wide range of credit scores. Credit scores under 620 can even qualify.

Home Ownership is the Proven Escalator to Wealth in America
By far, buying a home is the strongest path to wealth creation.  There are certainly a number of anecdotal quotes by successful real estate investors who address the subject.  Like David Bach from AE Wealth Management who said, "If you're not prioritizing home ownership, you are making a costly mistake.  Buying a home is the escalator to wealth in America.  Homeowners are worth forty times more than renters."  Then there's Thomas Stanley, author of The Millionaire Next Door who said, "There are under accumulators of wealth, average accumulators of wealth, and prodigious accumulators of wealth.  If you want to be a prodigious wealth accumulator, then own real estate."

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Most Important First Step is Selecting a Realtor® 
Whether you're a first-time home buyer, a move-up purchaser, acquiring an investment property, or relocating across the country to find a home, buying a home is one of the most thrilling events experienced in your lifetime. The process can be a confusing one for some, or simply a re-fresher for others who have bought and sold multiple homes.

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Understanding Seller Agency - Seller is Protected
When a seller in Northern Virginia desires to sell their home at the maximum price and in the shortest amount of time, their first step is usually to contact an exceptional real estate agent who specializes in this market.  The sale of a home begins with the seller hiring a real estate broker-agent through a written Listing Agreement.  The Listing Agreement establishes Seller Agency and outlines all of the contractual duties required by the Broker like what price to sell the property, how the property will be marketed, and how the Broker will act as a fiduciary for the seller and protect their best interests at all times.  The Broker then lists the property for sale and cooperates with other Broker-buyer agents to solicit offers from ready, willing and able buyers. 

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Not All Realtors® Are Created Equal
There are over 16,000 member Realtors® in Northern Virginia between the three associations; the Northern Virginia Association of Realtors (NVAR), the Realtor Association of Prince William (PWAR), and the Dulles Area Association of Realtors (DAAR).  The largest association being NVAR with over 12,500 members and each is part of the overarching National Association of Realtors®.  Buyers and sellers should know the only common denominators shared among practicing agents in Northern Virginia is they have passed an exam to become licensed in the state, they have activated their license with a supervising broker, and they have joined one of the three Realtor® associations in Northern Virginia to be recognized as a member.  That's where the similarities and standards generally end.

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