We’re at the second part of our How To Get Buyers off the Fence series. In part one, we emphasized why it’s never a good market to rent. In continuation of that, I’ll talk about the importance of educating your buyer clients about appreciation.
Keep in mind that we’re not trying to trick somebody into doing something they don’t want to do. However, if your buyer is struggling to make a decision, learning about appreciation could help them make the best choice possible.
“Owning a home is inflation-proof in a lot of ways.”
Let them know that owning a home is inflation-proof in many ways. In fact, during inflation, the value of a house goes up, making it a great way to hedge against a recession. If we go back historically, especially in California, property values have always increased except for the last recession. However, that last recession was caused by the real estate market, making it a different case.
The bottom line is that homeownership is a great way to appreciate and build wealth. If they buy a $500,000 house and home values appreciate at 5% in the next year or two, they’ll have a $25,000 increase in appreciation. Generally, properties that are in better neighborhoods and have a higher price point appreciate more as the market goes up.
If you have any questions about this topic or anything real estate related, call or email me. I’d love to connect with you!
