To Rent vs. Own in a "Slow Market"
Many people are unsure what to do in respects to the real estate market here in Charleston. Some are renting and waiting for the market to “bottom out” while others are buying properties at low prices by offering low offers, searching for distressed properties or at auctions.
These questions below have been provided by realtor.org and are helpful as you make that decision:
Who will tend to the property and pay for routine maintenance?
Who pays for major repairs?
What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?
Will you manage the property yourself, or hire an agent?
What if the renters change their minds? Who keeps the money in the escrow account?
If the buyers change their minds, what will be required to put the property back on the market?
How much of the rent is going to the down payment?
How locked in are you if you change your mind?
What will it cost you to get out of the deal?
How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?
With mortgage rates dropping again to a reported 4.5% some may say it’s time to buy! Then others say to wait until it “bottoms out” but, they ask when do you know a market has “bottomed out?” Well it’s when the prices start going up and you don’t want to be too late!
If you are interested in finding these “deals” and buying a home I would love to help you make a great investment!
Krystine S. Edwards