Brian Thomas Smith - Nashville Real Estate Agent

MSN Journalist

http://articles.moneycentral.msn.com/Banking/HomebuyingGuide/3BadReasonsToBuyAHome.aspx

My comments to Liz Pulliam Weston of MSN regarding her article. I emailed this to her today.

To Liz Pulliam Weston,


I believe the media has caused much of the current "scare" with relation to home buying and selling. Granted, places like New York, Florida, and California (states I have family that own Real Estate) have seen a major decline in the Real Estate Market, to name a few, but there are many towns and cities in the country that are doing very well. I am a Realtor in Nashville, TN, my business is flourishing and the market here is still moving ahead. The market is not as aggressive as it was 3 to 5 years ago but it is still moving ahead, growing and increasing in value. Yes the loans are harder to obtain and it takes more than a heartbeat and the ability to sign your name but if you can buy a house in Nashville you should do so fully informed. The city is growing in leaps and bounds and I believe Real Estate is one of the best avenues for investment. You made a statement that renting is normally cheaper than owning? Not here. For instance, the house I own that I used to rent is vastly cheaper for me to own than it was to rent. Many of my clients have found this to be true in their particular circumstances as well. In my case, for mortgage, taxes and insurance I pay about 25% less to own my home than to rent it. Should a problem arise I feel that owning the home and reaping the benefits of homeownership will out weigh any costs related to repairs or maintenance.

You make some very valid points about how to avoid pitfalls when buying and selling. Many things need to be taken into consideration when doing one or the other. However, if home buyer's stretch themselves too far on a loan or chose a loan that is not particularly realistic I feel that it is not anyone else's fault but their own. Working with a Real Estate Agent does not relieve any buyer or seller from their responsibilities and awareness. I am not stating that a Realtor should not provide advice for their buyers/sellers but that the final decisions are always their's and not the agent's. A smart and honest agent will advise a client as they should and disclose all angles of a purchase or sale. They will warn them if they feel a client is taking too much risk. I always review the financial aspects of the sale for a client and make sure that they are getting what THEY want and that it is a realistic and beneficial plan. Any Realtor that is not doing this should not be a Realtor.

It is my contention that much of your article is one sided. You state that paying rent is NOT throwing away money that it is the cost of a place to live yet you state that 10% (your estimation) of a home's value spent to sell that home and move is like taking that 10% and lighting it on fire. Clearly a one sided statement. There are costs involved in both scenarios and each have their rightful place. I would much rather have a monthly payment that provides me with a return down the road. Sure renting has it's place and many people should not own in their particular circumstance but the benefits of owning clearly out weigh the benefits of renting in most cases. Renting is a convenience and owning is an investment. A proper well planned investment provides profit.

Sincerely,

Brian Thomas Smith
Realtor - Nashville, Tennessee