Rent or Buy? How to Decide Which One is Right For You

Rent or buy is a choice that many face there are things to consider before you decide. When you are caught up in the conversation it seems like a wild ride of different opinions. There are arguments to consider on both sides, but ultimately buying or renting is a personal decision that should make good financial sense for the long term. Advocates for renting believe that the flexibility of renting outweighs the benefits higher costs of buying property and maintenance costs. They also believe that buying is not a good way to invest money and the buying one large asset like a home creates lost investment opportunity in higher yield investments like the stock market. Home buying boosters believe that buying is a forced savings plan that you can live in and enjoy unlike a stock fund. They also point to the tax benefits and the growth of tax free equity over time. People that advocate buying a home also cite the intangibles of decorating your house, choosing home improvements and no rent increases.

Some people who buy a house expect equity to jump like a stock. Usually, things don't work that way. Houses increase incrementally over time in desirable neighborhoods. There are historical charts available by area where you can judge the strength or weakness of your market. House prices that are much higher than a comparable rental may signal a good time for investment since pressure from the market is likely to cause more drops. You have time to make the right choice. Get your credit and all financials in order so you will be ready to buy if you choose to buy at all. You may buy now, later or never, but any way you slice it, you will be a prepared informed buyer that is ready to make a good decision. If you do buy, look for a house that has a combined payment of mortgage, taxes and insurance (PITI) that is the same or less than rent if possible. If the cost of ownership is more than that, make sure that the difference between rent and your PITI are as close as possible for the maximum flexibility. Having a PITI close to rent is not perfect protection form a dropping market, but it will mean that you will not be forced to sell in a down market and mean that you can relocate for work without having a high house payment choking you.

Many markets still favor the renter. In the past, house appreciation was slow, but predictable. Buy well, pay a little at a time and when you went to sell, you were up even after the cost of ownership. Homeownership was a slow steady way to get protected growth over time. Now some of that stability is out the window with shuddering markets drowning in REO's and short sales, so renters can benefit by waiting until the numbers make sense. Renters have always benefitted where rents are cheaper than ownership costs. In many areas, the cost of rent vs own is still cheaper than a mortgage without other costs involved. I won't lie. Personally, I hate renting. It was problematic for me on my levels, but financially it can be an advantage in a market like this. It is a solid, valid choice with the main benefit of flexibility both personal and financial. Renters are not second class citizens who cannot afford to buy. Some of the smartest people chose to rent during the bubble and are just now looking to buy as the market is more reasonably priced.

There are many arguments to be made, but no matter what your opinion one thing holds true over time that buyers need to remember. There are reasons to rent and there are reasons to buy. Buying a house is like getting married. If you need someone to talk you into it, you should wait until it makes sense to you before jumping in or you will face bigger issues down the line. Keep your goals in mind, get your finances in order and keep your options open until buying makes good sense to you based on a larger financial plan.

Top 5 Most Effective Social Media Styles For Real Estate Forums

Every professional has a style. When people start to look for an agent, broker or appraiser to hire, they often look at social media and information sites that include an active Q and A forum like Trulia or Zillow. Each potential client in cyberspace is looking for a professional that matches their style, is confident, professional and competent, but the content of their posts is not the whole story. Clients want good professionals to stand out above the rest. 

The overall professional tone can also influence whether those that read your posts pick up the phone and move from interested observer to client. Here are the top 5 styles that seem to bring professionals the most calls from qualified clients and styles that a buyer can look for to see which one suits them best.

The Professional- Offers specific advice based on experience or location with the basic understanding that each post represents a real person with a real issue. Advice is offered without strings attached.

Honest dealer- Tone is similar to the professional, but they take the extra step of offering support and advice to those who are having trouble with other RE or mortgage professionals. They are not critical of colleagues, but will offer basic guidelines about professional conduct to give the poster an idea of what should be expected.

Friendly neighbor- Has a genuine appreciation of people’s circumstances. Offers advise from personal perspective with an honest approach. No motives other than  those of an interested, impartial neighbor over the back fence.

Hotlink helper- Provides hotlinks to real information that posters can use. These posters favor government sites, good quality trade organizations, targeted mainstream media answers and links to helpful answers available in other sources. The goal is good quality information not promotion.

Funny Realist- Can be a professional or non professional or pro. Willing to admit the truth about the market or house even if it is less than favorable using humor to point out the basic issues. Approachable, honest and funny these posters provide information with an eye on facts.

Someone once said "Be yourself. No one can ever tell you you're doing it wrong," and that is especially true when it comes to live social media sites. If you are willing to share your experience and support with potential clients, they are much more likely to pick up the phone to find out everything you have to offer as a professional. Being honest, helpful and professional will help your posts appeal to clients who want an agent that stands head and shoulders above the competition.

Appeal Your Property Taxes in 5 Easy Steps

Many people that bought houses in the last few years may be unaware that their property taxes are higher than they should be. The market in many areas has changed, so the assessed value for your house may be higher than your current market value. That may be bad news when it comes to refinancing, but good news when it comes to appealing your property taxes since taxes eat away at your spendable monthly income. Here are 5 easy steps that you can take now to lower your property tax bill for next year.

Get your current assessed value. You need to know if your current assessment is higher or lower than your purchase price. You also need to look to see what your taxable value is with your assessor. Many communities offer a fixed exemption amounts from taxes on their tax bills for veterans, resident homeowners, disabled homeowners etc. Those can lower your taxable base for your property. Find out what amount your house is being taxed and assessed at by your local authority and look at the overall tax rate for your area.

Find out how much your house is worth today. You can use online sites like Zillow to start to look at your house value estimate, but one number like the Zestimate will not impress your assessor. You also need other information like the trend of the percentage of change in the median price up or down that is available on the local information pages by neighborhood, town/state or zip code. You might also consider asking a local agent for a CMA (comparative market analysis) on your house. Some agents will do it for free if you have worked with them before, others may charge a small fee for their professional time. They will have the most up to date information from the local MLS database. You can also pay for an appraisal for $300-500, but many assessors will give the same consideration to solid CMA so find out before you pay for an appraisal that you may not need for your appeal. 

Build your case with comparable sales. You can find comps online from your local recorder's office, sites like Redfin, Realtor or Zillow or get them from a helpful local agent. Zillow has a video to help you find comps on the site and an article for choosing the best comps for your house. A comparable sale for a real estate purchase is a similar house sold in a similar nearby area within the last 30-90 days. For assessment purposes, many assessors have an assessment period that often starts just before the new tax year. Call your assessor and ask what period of time you need they use for comparable sales for appeals. You need to make sure to have all the basic information on each comparable house that sold in that appeal period.

Come prepared. There are no do overs for tax appeals. Come ready to present your case with information in hand and you will be more likely to win your appeal the first time. Look for 3-6 similar sales that sold for lower than your assessed value, get copies of the local median home price trend for values since your purchase, get a basic print out of all home sales in your nearby area during the appeal period and provide a basic description of how your house compares with the houses that have sold.  A local agent can also provide you with a list of recently sold houses. You need the basic house information (bed/bath, square footage, lot size, year built, significant remodels etc.) for any comps that you use. Doing that and coming prepared gives you a good chance of winning your appeal. You need to prove that your assessed value is higher than houses that have sold recently NOT that you should be taxed at the same rate as a nearby neighbor with lower taxes. That argument rarely works with assessors while citing recent sales and focusing on current values often does.

File your tax appeal on time. If you miss the deadline to appeal, you will not be able to appeal until the following year. If prices go up in that time, you may lose your chance to appeal to a lower tax base altogether. Every municipality has different forms and different deadlines. Call your local assessor's office to get the process for appeal in your community, the necessary forms and the deadline to file your appeal. Many assessors offices now have that information available online so look up your local assessor to see what their process is or give them a call. Most assessor's offices are very helpful in providing information.


You can win your tax appeal if you come prepared. If you do not win the first time, consider appealing your denial. Many people have the information they need to reduce their taxes, but the initial assessor decision is used as a "gatekeeper" to discourage appeals. The more solid information you have, the more likely you are to win. Winning a tax appeal is satisfying and more important is means you will have more spendable money every month.

Welcome to my first real estate blog!

This is my very first blog so I would like to take the time to say hello and introduce myself a little bit. My name is Sunnyview and I have been a regular poster on Zillow since 2007. Although Sunnyview is not the name that my parents gave me, it is the name I happily answer to when it comes to talking about real estate.

I first started posting online as a way to spare my friends and family from my passionate interest in all things real estate. I also felt that it was important to try to provide solid information based on my own experience and informative online resources to help people make better decisions about real estate. During the bubble, many people were lost and were relying on the real estate industry itself for guidance. I am proud to say that I feel that the conversations I have had with people both online and off have helped them to get the raw information they needed to make better decisions.

My interest in real estate is not a passing fancy. I have been involved in many aspects of the real estate business including appraisal, property management, raw land development, investment property and property rehabilitation.  Although I have been contacted many times by people on Zillow wanting more specific information than I could possibly offer in a post, I have shied away from allowing people to contact me directly due to the volume of questions and requests.

I feel now that I can take some time to answer selected questions and provide information in this longer blog format with more detail than would be possible in Zillow Advice. Although I can't promise that I will be able to reply to every question personally, my hope is to build a blog with detailed answers to common or interesting questions complete with any links that might be helpful. So ask away, the coffee it hot, the advice is friendly and Sunnyview's email box is open.... :)