Heather White

This post is the result of interviewing a variety of successful brokers in Lane County from different real estate companies on the topic of renting versus owning. The Wall Street Journal and other publications have called the worth of homeownership into question as noted by John Wallace, CEO of the Oregon Assocation of Realtors in addressing the Willamette Association of Realtors.

How should we respond when someone confidently states that it makes more sense to rent than to buy?

How should you the consumer sort through this question?

Two people stressed something I'll call professional empathy as a framework for their answer. Kevin J. Brown of Windermere Lane County painted a picture of no-nonsense ultra-personalized options counseling. This approach requires the client to have complete trust in Kevin to truly lay out all the options on the table with all the variables involved, often including tax experts, legal professionals, additional family members and close friends to offer explanation and support. The bottom line answer is a choice not to answer philosophically but rather personally; this focus points to the client's life and their decision, case by case.

Similarly, Lisa Ward at Keller Williams Eugene Springfield matter-of-factly explains "the roller coaster ride you're on" to her clients while also offering her opinion that it is a good time to buy, even two years out from a bankruptcy. But her approach is to throw out scenarios and facts. From there, clients make the call they are comfortable with given their situation. The choice these two made to respond to my question about whether renting or buying is more advantageous could be addressed in many ways, but for Kevin and Lisa the relational angle dominated their response.

Brent Cole of RE/MAX Integrity looks thoughtful as he says quietly, hand on his face, "When someone else dictates your cost of living--not a good place to be. The tax deduction and current interest rates are immediate benefits of buying. I am optimistic about appreciation of property historically and now. Without optimism, appreciation cannot occur. I know someone who owns a home with a $1300 mortgage payment which could be rented for $1250 but with no tax benefits. For investors it's even better." Brent's wide angle view of the situation shows he is a broker who is very interested in the idea of investment as well as the welfare of his clients.

Tony Losco of Key Realty Group in Eugene is clear about the opportunity, "You'd be stupid not to buy right now, if you can. To buy at seventy cents on the dollar is a smart investment. Foreclosures are fifty cents on the dollar from a few years ago, as are some short sales. It's a bottom up feeding frenzy; first time home buyers should jump in with both feet. That will stimulate the market. It is true that a seller may be better off renting their house out rather than selling it. Especially since many home owners are not eligible for a short sale, including anyone with more than one property or vacant properties. Investors looking right now can at least break even, if not be profitable in purchasing now, especially with these interest rates. I closed two cash purchases the same week, and each of them took just 10 days to close. Both were investors that see the market is at the bottom and are taking full advantage of it."

Howdy Cole of RE/MAX Integrity summarizes his thoughts this way, "The Northwest seems to lag behind the national trends, but for now we have low prices and are seeing things like sellers paying buyers' closing costs. It is easier to get into a property. People like to have a piece of ground they can call their own. Some of what we hear in the national media, if interpreted locally, turns into jumping at shadows when you look at the facts. This is a favorable market for buyers."

The professionals quoted in this article are respected for their competence and have rich experience in the real estate industry. I think their voices are worth listening to, as national headlines don't tell the local story very well.

Overheard last week in the office next to mine: "They are good neighbors. Everyone looks out for everyone else." The voice was Gary Raze, a broker at RE/MAX Integrity describing a neighborhood to another real estate broker. I popped up out of my chair to ask him if I could quote him on that and explained the blog article on renting versus buying I was working on.

Gary pointed out that "in a neighborhood where there are just a few renters, they may find people do not approach as they do with other home owners. Why should they? Renters move away. No one wants to get close to someone and then have them leave." That goal of owning a home still matters. To watch a video on the importance of home ownership click http://link.brightcove.com/services/player/bcpid1785312249?bclid=1740033302&bctid=664750407001.

Here are a few other points to consider before we turn to local experts in an upcoming post:

• Owning a home is an investment, an accomplishment and something to pass down to future generations
• Having a home means traditions and creative expression rather than landlord limitations
• Homebuyers buy into a neighborhood, a community, including local schools. This creates stability.
• According to the National Association of Realtors, "In the past 12 years, the net worth of the typical home owner has ranged between 31 and 46 times that of the net worth of the typical renter."
• Tax benefits
• Appreciation of investment is a historical fact. Investors are buying up 1 out of 5 homes in Oregon; apparently they agree

Wondering what is in your best interests given the variables in your life? Read the local expert comments in my upcoming blog post, "To Rent or To Own, is There a Question?" and check out this Bankrate.com calculator tool designed to help consumers break it down for themselves http://www.bankrate.com/calculators/mortgages/rent-or-buy-home.aspx.

For immediate release: For information contact:

Friday, November 5, 2010 Bob Avery 541-510-6184

Buying a home in today's market

Free home buying seminar

Learn about current local Real Estate market trends, how to navigate the mortgage market and more.

Monday 11/15/2010 from 7:00pm to 8:30pm.

The Seminar will be held in the media room at Christ's Center Church, 530 West 7^th Street, Junction City

Who should attend? There will be something for everyone - first time buyers, seasoned buyer, rent vs. buy,how to get a mortgage and those just curious about current real estate market conditions.

There will be a question and answer period.

Presented by:

Bob Avery, licensed Real Estate Broker with RE/MAX Integrity and long time Junction City resident.

Todd Zimmerman, licensed Mortgage Consultant with Precision Funding of Eugene.

Child care will be available at no charge.

Please RSVP to 541-284-8060 to let us know you are attending.

1. The HELP Program. Only RE/MAX Integrity brokers can offer buyers and sellers this great option. As a buyer, if you are afraid of losing your job but would like to buy a home, your Integrity broker has access to a program to help you pay your mortgage, including interest, for 6 months. Also included is an emergency fund and financial advice at no cost to you. As a seller, for $500 you can make your property even more attractive to buyers by offering Mortgage Protection. A sign in the yard will ensure people know your home has an additional perk.

2. The MLS Now! instant information system. As a seller, you want people to be able to find your home and gather information quickly and easily. With the ability to dial a local number and get instant information texted to you about any  home, including Integrity listings, buyers will see this resource in a yard sign and will be able to get the info they need without dealing with a Realtor. This is a big plus in a world where the phone call to a Realtor is one of the last things a buyer does, and as a seller, what a great way to meet the average consumer where they are - at the street level - without the hassle of engaging a broker just yet.

Concerned about job security but ready to make a change in your living situation? Consider learning more about the HELP Program offered through RE/MAX Integrity at our locations in Albany, Corvallis and Eugene Oregon. The idea is that a seller can add extra interest to their property by paying a $500 payment to the Rainy Day Foundation, an organization that provides financial counseling, emergency funds and mortgage protection for 6 months, principal and interest. Six months, should you lose your job would give you a solid amount of time to get back on your feet. For a seller, $500 is a small price to pay to make your property stand out. Your RE/MAX Integrity agent can advertise this special program on the yard sign. Visit http://www.integrityhomesonline.com to see a roster of outstanding agents and inquire further.