Thoughts on Marketing…

If so, how can you shove them off that fence and into a buying mode?

First, show them how the law of supply and demand dictates that rents will continue to rise. In some communities it is already cheaper to pay a mortgage payment than a rent payment. If foreclosures continue, so this trend should also continue.

Get the numbers for your own community and show them the comparisons.
Then talk about the fact that mortgage payments build equity for you while rent payments build equity for the landlord.

But here’s what’s really important:

As long as you don’t plan to move, it doesn’t matter if your home increases or decreases in value over the next couple of years. If you want pride of ownership, love the home, and can comfortably afford the payment, that’s what matters.

Next, when you own your home you don’t have to answer to a landlord. You can paint the walls, change the light fixtures, and drive nails to hang pictures. You can even move a wall if you really want to.

On top of that, when you own your home and have a fixed rate mortgage you don’t have to worry about the monthly cost going up or being evicted because your landlord failed to make payments (or wants his kids to move in, or sells to someone who wants to live there themselves.)

Of course there are tax advantages. I found a website that shows how much tax you pay after deductions – and it can be eye opening.

For instance, for the year 2011, a married couple filing jointly will pay $22,372 on an after deductions income of $100,000. Pretend for a minute that they have $16,000 in deductible interest and no other itemized deductions. After eliminating the standard deduction of $11,400, they’d still have an additional $4,600 in deductions for income tax purposes. Their tax bill would drop to $16,100. That savings of $6,272 comes to $522 per month that could go toward a house payment, savings, vacations, or whatever else they liked.

And of course, if they have other itemized deductions, such as employee business expense or medical bills that would normally be swallowed into the standard deduction, their savings will be even higher. And this doesn’t consider state taxes – if you have those, they might save there as well.

Check out that website I found, and use it to show your fence sitting buyers how much they’ll save.

http://www.moneychimp.com/features/tax_brackets.htm