Use this firsttuesday FARM Letter in your marketing. To request a FARM letter topic, or to see a list of all our FARM letter templates, visit our FARM Letter page.
How often do you give potential first-time buyers a buy-versus-rent comparison as part of your client solicitation strategy?
- Sometimes. (41%, 31 Votes)
- Never. (30%, 23 Votes)
- Always. (29%, 22 Votes)
Total Voters: 76
Use first tuesday’s Buy Versus Rent Comparison Analysis as part of a successful FARMing campaign to show first-time buyers how ownership under your guidance creates savings and equity buildup that renting does not.
Show first-time buyers the money!
Market got you down? Don’t just passively wait for referrals or walk-ins these days — find buyer-clients by FARMing tenants and converting them into first-time homebuyers.
Many tenants have never considered buying, assuming homeownership is financially unfeasible. These negative assumptions are built on ignorance about the economy of ownership and the financing they qualify to borrow. Preparing a Buy Versus Rent Comparison Analysis for review with potential first-time homebuyers gives a picture of the approximate monthly costs of homeownership.
Comparing today’s home prices, interest rates and utilities with the rent and utilities they now pay as tenants, will likely encourage tenants to reconsider homeownership. This analysis will show potential first-time homebuyers how ownership clearly creates savings over renting.
Reviving the “standard practice” of yesteryear
As a matter of standard practice up until 1972, the back of an agent’s business cards commonly had a dollar comparison between the monthly rent and monthly ownership expenditures for a typical first-time homebuyer’s low-tier home.
The math demonstrated the savings to be had by buying comparable or better replacement housing instead of continuing to rent. These cards essentially told a tenant: if you are renting instead of owning, you are mathematically challenged.
Today’s standard practice of withholding disclosures until in escrow does not include this tactic — but good practice does. Buyer’s agents who make a home expense comparison part of their up-front practice will reap the benefits of happier, better-informed clients — translating into sales and referrals.
How it works
In firsttuesday’s Buy Versus Rent Comparison Analysis below, enter the approximate values for the monthly costs associated with the ownership of a suitable property in the left column. In the right column, enter the costs associated with renting a similar property.
Sample default numbers are provided, but may be overridden by entering a different amount. Both columns are programmed to calculate and display the total monthly costs incurred in ownership versus renting a comparable property. With the math in-hand, discuss the figures with your client. Show them the cost-savings analysis of buying versus renting and review the conclusions.
After making the buy versus rent presentation, take your first-time buyers to a lender to exhibit how easy and straightforward it is to get approved for purchase-assist financing. Homeownership is more than a lifestyle preference — it’s the financially smart thing to do.
We welcome your comments or suggested improvements to first tuesday’s Buy Versus Rent Comparison Analysis. What other factors are attached with owning and operating a home? Please leave a comment below or email our editorial staff at editorial@firsttuesday.us so we can continue to evolve and supplement the worksheet for our members.
This is a fantastic resource for agents looking to engage with potential first-time buyers! The Buy Versus Rent Comparison Analysis is such a practical tool to help demystify the financial aspects of homeownership. Many tenants don’t realize the long-term savings and equity they can build by purchasing a home instead of continuing to rent.
I love how you’ve highlighted the importance of showing clients the numbers—it’s all about making informed decisions! The historical context you provided about agents using business cards to convey these comparisons really adds depth to the discussion. It’s so true that an upfront conversation about costs can lead to happier clients and successful outcomes.
I’m curious if there are any additional factors you think should be included in the analysis, like maintenance costs or tax benefits? Thanks for sharing such valuable insights!
This is a fantastic resource for agents looking to help first-time buyers understand the financial benefits of homeownership! The Buy Versus Rent Comparison Analysis is such a powerful tool to dispel the myths surrounding buying a home. It’s crucial to present potential buyers with clear, concrete numbers that show how ownership can actually save them money in the long run. I love the reminder of the traditional practices, like using business cards for cost comparisons—it’s a great way to reinforce the value of reintroducing effective strategies from the past. Thanks for sharing these insights and for encouraging open dialogue on improving this tool further! Looking forward to seeing how it evolves.
This is a fantastic resource! The Buy Versus Rent Comparison Analysis really highlights the financial benefits of homeownership, especially for first-time buyers who may not have considered taking the leap. It’s so important to educate tenants about the true costs of renting versus owning, and this tool makes it so much easier to do just that. I love the idea of reviving the old practice of sharing this information upfront; it can truly change perceptions and open doors for potential homeowners. I’m definitely going to incorporate this into my client consultations! Thank you for providing such valuable insights!
This is a smart and proactive strategy. Using a Buy vs Rent comparison makes the financial benefits much more tangible for first-time buyers. When people can clearly see how equity builds over time compared to renting, it becomes a much easier decision to explore homeownership.