I have always been a proponent of purchasing a home rather than renting one; however, it seems that more and more people are contacting me to find them a rental home. They want to “rent” a home rather than 
to buy! Just this past week, I showed two separate clients a rental.
I am also receiving calls from those that have purchased a home through me – and are now foreclosing or considering short sales.
Almost without exception, these homebuyers who purchased a home through me have refinanced or acquired a second loan on their home purchased six or seven years ago. Due to our market, they are upside down and cannot sell their home. As a result, they
need to “rent.”
There are, of course, other reasons, but being upside down due to refinancing seems to be at the top of the list.
Many former homeowners are now needing “or” wanting to rent a home. Because of their inability to pay the loan on their home thereby short selling or foreclosing, investors are flooding the market picking up homes at prices not seen in years. Typically an investor makes needed “fixes” and “repairs,” and then puts the most recent purchase on the mark
et as a rental. Therefore, purchasing property as a rental has become increasingly more affordable.
So? If you were to ask me if it’s a good idea to purchase a home NOW, I would resoundingly say YES! Whether for investment purposes or to live in – I’ve never seen a better market to purchase. Just be very careful when thinking of a short sale – or a bank owned. Become educated on what that is about.
Mesa, Arizona Real Estate. Call me at: 480.216-3334 for information on purchasing or selling a home in Mesa, Arizona or surrounding towns. OR email me: Teri@TeriEllis.com. Feel free to visit one of my websites: HomesAzRE.com, ServingMesaArizona, MoveToMesaAz.com or MoveToSunnyAz.com. Or stop by my blogs at: MesaAzRealEstateVoice; or Phoenix Valley Real Estate Blog
Mesa, Arizona Real Estate. Call me at: 480.382-8711 for information on purchasing or selling a home in Mesa, Arizona or surrounding towns. OR email me: Teri@TeriEllis.com. Feel free to visit my website: HomesAzRE.com, or stop by my blogs at: MesaAzRealEstateVoice and AzLadyInRed!
TERI, there are some real deals out there for buyers!!
Teri - yep, for the right buyers, who are planning to stay put for some time and can qualify for amortgage, it is a great time. But that doesn't mean everyone. Folks are having some difficulties getting pre-approved unless credit is stellar. But we wtill have a good inventory (but much less than a few months ago) and prices are very competive. But with more activity buyers have to watch they don't miss out on the home they love as new folks are entering the market almost daily.
I get a good number of calls ahout rentals too.
Jeff
Teri, I get so caught up in how great your posts look that I almost forget to read them! They look absolutely incredible!
Hi Teri..It's really Sad people are having to give up their family homes to rent. We'll look back at this time in history and say we all should have bought, we're about to see hyper inflation take place in the not to distant future. Certainly the Low Mortgage rates will not last.
Cheers, thanks for sharing your story.
This certainly is a crazy market, but you are right with some it is just better to rent now, but I still say if you can swing it... Buy, Buy, Buy! Investors are going to cash in when the market turns around again because they are buying up so much inventory now while home prices are great!
I see more and more transferees who are asking to rent as well. If you are possibly going to get transfered again real soon it might make more sense to rent with the uncertainlty of the market.
Teri,
What I see is that it is important that our clients do WHATEVER is in THEIR BEST INTEREST. And then do all we can to help them through this time.....if they CAN buy, great, I would love to help them. If they need to wait, then wait it out and rent if you can. Of course, in our area which is a college town, renting is always a risk, but you have to do what you have to do...
Hi Teri,
I just got the dreadful call a few minutes ago. A buyer that I had been working with all week decided to rent instead of buy.
He wants to rent in February or March (the peak of our rental market) in Sun City Grand. I don't know if we will be able to find a rental. It's too bad because this is a buyers market and he would have been sure to buy now at a reasonable price and have a nice home for the fall and spring. Oh well, agents just do what what the client thinks that is best for them.
Amen Teri! I'm in the West Valley where home prices in some communities are under $50/sq ft. With interest rates under 5%, and fantastic incentives on government homes, it's almost always less expensive fo someone to buy an SFR than it would be to rent it...
Marchel, you're definitely right about the deals. If there was ever a time to make your move - if you can afford to do so - it's now. ;-)
Jeff, you're right about "not everyone," and renting can be a great option right now. ;-)
David, well, as Realtors we tend to be a bit artistic down deep don't you think? Thanks...;-)
Fred, glad you stopped by. I think a lot of people will be looking "back," 'cause we never know for sure until it's too late, huh? ;-)
Todd, you are right about the investors. They're the gamblers, and they're the ones that know the market. They're here right now...;-)
Bill, very true. Buyers need to be thinking about staying in their homes for awhile.....not like the old days. ;-)
Lori, rentals can be a risk, but if you, as the Realtor research their info, that will help your renter to feel a bit more self-assured. ;-)
Leolinda, happens all of the time, those calls, don't they? Finding a rental through the MLS can be a challenge right now - and Craig's List - is full of them, but who knows if those are for real or not... As a Realtor, I can check, but it's more of a challenge with off the street renters. ;-)
JSamsing: it is less expensive, but some of the hoops people have to jump through is crazy. There are good prices out there for the discerning buyers though. ;-)
I think its the perfect time no matter what state you are in for investor to buy to hold for rent, and what's so great the cash flow they can get right now is unbelievable!!
Teri--Good explantion of why now is a great time to buy. There are so many good deals to be had across the country.
Good time to buy if you are an investor or looking to live in the home prices and interest rates make it a great time to purchase.
Jeannette, I 100% agree....;-)
Teri, there really are....too bad so many are still fence sitting. ;-)
Terry, either way, it's a great time for sure. ;-)
Teri - You definitely have to adapt in this market and like Lori said you have to do whatever it is for the best interest in your client. Hear Hear, Bravo Teri you tell them...Now is a great time to buy better than ever!