What to Expect When Going from Renting to Buying
People often make a transition from renting a property to owning one; rarely does this occur other way around. There are many factors that could influence a tenant’s decision to become a homeowner, and there are many things these new property buyers will have to get used to.
For sure, navigating the property market as a potential buyer instead of a potential tenantis a completely different business involving many different influencing factors and things to consider.
Real estate experts City Home Collective, a firm offering modern homes in and around SLC, Utah, say that the most fundamental difference between renting and buying is probably the issue of commitment. Once you have bought a property, it can become harder to sell it again without losing money than it is to move from one rented property to another.
Of course, renting and buying also share some things in common. For example, you should in both cases enlist the help of a good realtor. And, by a “good realtor”, we mean not only one who has the expertise to advise you along the way and help you make an offer, but one that also has a detailed local market knowledge.
In other words, this means a knowledge (and experience) of the local market and the many location-specific factors which could be affecting everything from the asking price to the terms of the lease. Connections, resources, and market reach are all particularly important, but there is no substitute for detailed and professional knowledge of the area where you are either looking to rent or buy.
Making the Transition
When the time comes for you to get on the property ladder and to make the decision no longer to rent, there are a few things for which you should be prepared. However, before making those considerations, you should consider whether you are really ready to make the transition from renting to buying.
Of course, the first thing is to ensure that you have the money to buy a house. You should make sure that you have a solid credit score and the income to pay off mortgage installments over time. Other signs that you are ready to get buying could be factors like rising rent or the need for a more secure set up upon having a family.
What to Expect
So, you’re finally on the hunt for a place to own, not to rent. What can you expect after this transition? Here follows a few things to get a ready for:
It Takes Time
Undoubtedly, it is quicker to secure a place to rent than it is a place to buy. This is all well and a good and you wouldn’t want it any other way. Sellers will vet several buyers, and you should certainly be vetting every property – in detail with your realtor – for some time before taking the plunge. Expect to be house-hunting for a while.It does pays off though.
Extra Regular Costs
Monthly mortgage payments, property taxes, and insurance fees – these are all things that you don’t normally have to worry about as a tenant. You will have to get wise on them when it comes time to buy.
It’s an Investment
A positive shift from renting to buying is that you can consider your new home an investment, one that will hopefully appreciate in value over the years you own it. When (if) it comes time to move on, you could stand to make a profit.
Although they might seem like similar experiences, there really is the world of difference between renting and buying. Above all, this can be summarized as “extra effort, and more rewards”.