Why Buy a Home?

Owning property is essentially owning a piece of America, and that is a fabulous and unique right to have.  That said, actually owning your own real property is a privilege that not all of us can afford.  If owning a home is goal of yours, or even a dream, I will tell you with honesty that NOW is the time reach that goal and live the dream.  Home prices and mortgage rates continue to be at historic lows, so you will never get more home for your dollar than right now!   If you are a first time buyer I would love to help you learn how to make home ownership happen for you.  If you currently own a home and are looking to upgrade or downsize, it is still a great time to make a move.  Lately, I have heard a few people say that are planning on waiting to sell their home until the market improves.  When asked why, they generally cite the poor economy and feel that since home prices are generally low, that they may not get the kind of offer they would like for their home.  Here are a few things to consider if you have had these feelings:

  • If you have been watching the national news and their commentary on the strength (or lack thereof) of the housing market – keep in mind that our local Buffalo-Niagara region is a very different story.  Our market continues to be one of the strongest and most stable in the country.  This is documented statistically and acknowledged in multiple news reports and articles.  All real estate is local, and houses in Buffalo are moving.
  • It is likely that you won’t sell your home for the price that you anticipated.  Although this may be true in any economy, it is especially true now.  We will work closely together to determine the price at which to list your home.  I will provide you with all the necessary statistics and comparable properties to choose a price to list your home so that it will sell in a timely manner and maximize your return.
  • You probably won’t win on both ends of the deal.  With home values and prices currently on the low end, you cannot realistically expect to sell your home for big bucks (above fair market value) AND get a great deal on the new home you are buying.  But, the good news is…
  • You will probably win in the end and save a lot of money over the long term.  Real estate is a long term investment.  You will likely get an excellent price on the new home you are buying so the money from your sale will go further.  Now for the best part – the biggest advantage right now is the fact that interest rates are near historic lows.  Over the long term, this is what will save you tens of thousands of dollars.  Try the mortgage calculator in the sidebar and view the amortization table, or take a look at my example below:

Example:  At a rate of 4.5% for a 30 year, $135,000 mortgage loan, the interest you will have paid in the end is $111,249.85.  If that rate increases just 1% to 5.5% on that same $135,000 loan – your total interest paid after 30 years is $140,946.35.  That is a difference of $29,696.50!!  Keep in mind that, historically, interest rates have generally been in the 6% – 10% range.  You can view a snapshot of average mortgage rates over the past 50 years below and see for yourself how good they are now.


Mortgage Rates Over History

As you can see, you will end up saving yourself a LOT of money in the end, even if it might feel like you are taking a bit of a hit on the sale price of your home.  If you are thinking about making a move and are interested in having me come out to do a free market analysis on your home, please call me at 716.380.5845, email chris@realbuffalony.com, or use the contact form here.

Here are just a few other GREAT reasons to own a home:

  1. You can get a great deal.  Prices are down and mortgages are cheap.
  2. Tax benefits.  There are great deductions available from mortgage interest to energy credits and lots in between.
  3. It may actually be cheaper than renting.  Granted, as a tenant you aren’t responsible for maintaining the property and all of the other costs associated with that, but you are putting money towards your investment and developing equity.
  4. Long term appreciation.  The demand for housing in America will always be on the rise and you will have your piece of that supply.  If you have been thinking about real estate investment beyond owning your own home, please visit my Investor Page for more information.
  5. Equity, also known as forced-savings.  And, when you sell, you will most likely be able to take the capital gains from the sale of your home tax free.  (Up to $250,000 single, $500,000 married.)
  6. Stability and Freedom.  Your home is all yours to paint, decorate and customize … something you generally can’t do in a rental.  Also, you have a great opportunity to develop an ownership stake in your community, commit to an area, and raise a family in your own home.

Please feel free to contact me any time to discuss how to make home ownership happen for you.  We can meet for a no-pressure consultation and evaluate your wants and needs and the opportunities that are available to help you fulfill your home ownership dreams.  Now is such a great and affordable time to buy and I don’t want you to miss out!  Can’t wait to hear from you!



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