The truth to the question of whether renting or buying a home is the better option is simply this: it all depends. Neither renting nor buying a home is the better option. It all depends on the consumer, the market, the likelihood of residence, and other variables that affect whether buying or renting a home is the better option.

As mentioned in the article “The Not So Obvious Pros and Cons of Renting“, there are many things that most people don’t consider when thinking about renting instead of buying a home.

Mortgages and Monthly Rent Are The Same Thing
People like to say “renting is just paying your landlord’s mortgage”, but in actuality you’d be doing basically the same thing with a mortgage for roughly the first 7 years of the mortgage which consists of almost entirely interest payments that in no way bring down the balance remaining on your mortgage. The difference between the mortgage and the rent though is sometimes as much as 60% cheaper or more for the same home when you factor in other things you’d be paying as a homeowner, such as taxes, insurance, home repairs, homeowner’s association fees, special assessments, etc.

Mortgage Interest is Tax Deductible, But Don’t Overstate It
Integrated Loan’s website has a great article describing why mortgage interest being tax deductible isn’t as straight forward as it sounds, and really shouldn’t affect your decision as to whether you should rent or a buy a home. Simply put, there are better pros to home ownership than the tax deductions.

It’s not uncommon for a Realtor to being working on a deal for months, possibly even a year, and something will happen that will cause the deal to collapse (This is very common right now with short sale deals). All the time and money that went into ensuring you’re going to get paid is down the drain in an instant.

People don’t trust you

Most Realtors are good, trustworthy people who work very hard and put up with a large amount of stress to get their paycheck; There are a few rotten apples out there who taint the image of the group. There are some instances where it’s in the best interest of everyone to bend the truth a bit (see below), but in general Realtors and their clients are both on the same team. They stand to gain very little from deliberately screwing you.

People will choose the Realtor who lies

Sometimes people just can’t handle the truth. Today’s savvy Realtor knows the best tactic is to lie to you about the likelihood of selling your home at some ridiculously overinflated price just so you will get locked into a listing agreement. Then after a month of not having any interested buyers (gee, I wonder if it’s because you priced your home like it’s the Taj Mahal), the Realtor gives you “the talk” where they show you what you realistically need to price your home at so it will sell.

The problem is most people are offended when they are told from the get-go that their home is only worth the current market value, so they kick “Mr. Realistic Realtor” to the curb for being honest, and sign with “Mr. I-Can-Sell-Ice-To-Eskimos Realtor” because he will promise them the moon but in the end provides the same exact service. And then you get mad at Realtors for being dishonest while at the same time only giving business to the dishonest ones!

Clients who won’t be satisfied until you get the deal of a lifetime

The market isn’t dumb. You’re not going to find the perfect property in the perfect location for the perfect price. In some very rare cases you may just get lucky and find a recently listed property with a clueless seller who you can lock into a purchasing agreement, but this is not common. In most situations, if the property is desirable and it’s priced right, you’re going to be pit against potential buyers who all want the same thing.

Clients who have absolutely no clue how real estate works

I’ve actually had someone ask to see the “secret list” of properties that only Realtors know about. The buyer insisted Realtors must have some secret list of properties that are much cheaper than the market average. It took several minutes of explaining that if such a secret list existed, we’d be buying those properties ourselves (and flipping them for profit), or showing them to our own clients. Markets sort themselves out, secret lists don’t exist. In fact this is why whenever properties are priced extremely low, bidding wars happen.

People think we have all the time in the world

Realtors who work full time are very busy people. I know many top sellers who can’t even stop for lunch without getting bombarded with business calls. What most people don’t realize is that Realtors have to work around the schedule of buyers, sellers, lenders, appraisers, inspectors, surveyors, mortgage brokers, title companies, and lawyers. So Realtors are always pressed for time between clients, paperwork duties, driving, and other duties that clients never really see.

What Do You Hate About Being A Realtor?
I’d love to hear other Realtors talk about other things they hate about some of their clients and issues with this career field.

• 10 Tips for Preparing for Home Ownership posted at DoorFly.com.
• Should You Sell Your House or Rent It Out? posted at Houston Real Estate Analysis, saying, “When buying a new house, many current homeowners are debating whether they should sell or rent out their old house.”
• Owning Real Estate Within an IRA posted at Christian Personal Finance, saying, “Many people aren’t aware that you can own real estate within your IRA…”
• Our Frugal Ways: Rent for a Few More Years Before Buying posted at Spruce Up Your Finances.
• The Myth about Mortgage Tax Deduction posted at Integrated Loans.
• Real Estate Lingo 101: What is Escrow? posted at The Dough Roller, saying, “Escrow is a term unfamiliar to most, however the concept behind the idea is quite simple.”

If you are interested in contributing to the next real estate article carnival, you can submit your article at the submission page.

Better Bath Deep Water Bath

The Better Bath Deep Water Bath is a neat way to make a typical bath tub into a luxury bath tub by allowing more water to fill into the the bath tub. The device works by attaching to your existing bath tub drain and altering the height at which water is drained, essentially giving you a more enjoyable bath experience. For only six dollars, this is a great product to have in any bathroom and it makes a great bathroom gift!

Automatic Hands Free Soap Dispenser

Now you can have hands free soap dispensing in your own bathroom, with a stylish look! The simplehuman Automatic Soap Dispenser is an affordable and sleek way to provide hands free washing in your bathroom (it also is available in black if you’re bathroom styling doesn’t match the white soap dispenser).

The Curved Shower Rod

The Curved Shower Rod makes a huge difference in how you will perceive the size of your shower. It will open up your showering area without actually taking up anymore space, and is something I personally love in my own shower. I can’t imagine going back to those claustrophobia inducing straight shower rods; Of all the items on this bathroom gift idea list, this is without a doubt the best product for any bathroom no matter how big or small.

Digital Shower Radio

Don’t pretend like you don’t sign in the shower; The Digital Shower Radio is the perfect shower companion for the amateur singer in us all. It boasts a long battery life, clear and easy to use radio controls, and a strong speaker so you can sign your heart out in your bathroom.

EatSmart Digital Weight Bathroom Scale

The EatSmart Digital Bathroom Scale is the perfect tool to keep your weight in check, while also keeping the bathroom looking sleek and modern. It supports up to 400lbs and boasts an instant readout on it’s tapfree LCD display that is backlit so you’ll be able to view it even in the dimmest bathrooms.

There are many things to consider before buying a home, especially for first time home buyers. When first time home buyers finally get the keys to their house, they quickly learn the great responsibility involved with owning a home. Take these things into consideration before you buy your home, and you will save yourself many headaches in home ownership:

Affordability
The most important thing to consider before buying a home is whether you can truly afford the home. It’s not as simple as finding out you’re pre-qualified for a mortgage equal to the value of the home, it’s a question of whether you are comfortable paying X amount of dollars every single month for the length of your mortgage (or until you sell it). Many first time home buyers don’t consider the overwhelming responsibility involved in having a mortgage, and get a price shock when a huge chunk of their monthly income is instantly vanishes before they even get to consider spending it on something else.

Flexibility
Flexibility is another thing to consider before buying a home. How likely are you to stay in your home as the primary resident? Does the thought of a 30 year mortgage keeping you locked in a specific location sound scary to you? In a declining real estate market, buying a home more than likely means you won’t be able to sell it for a profit (or even break even) for a long time, locking you into your home and restricting your flexibility to move to other areas.

Physical Condition
Most home buyers are not in the construction industry, are not professional home inspectors, and simply do not have a handy-man background; Many homes in horrible physical condition are often easily resold to unsuspecting first time home buyers who didn’t consider the overwhelming costs of home repairs that will be needed in a few years or less on their newly purchased home. Don’t simply shrug off a property that is really desirable but has a roof whose lifespan is about to run up, or a home with bad electrical or plumbing. Always assume the worst when it comes to home repairs, and take that into consideration before you buy one home over another.

Desirability
It’s not enough that you love your home, it must appeal to a broad range of potential buyers/renters so that when the time comes to sell it or rent it out, you have a wide audience to advertise your home to. Try to envision yourself as someone with typical tastes in a home, and ask yourself if your potential new home has these features. Don’t buy the home that will only appeal to a few people, or you might end up stuck with the property for a long time if you ever decide to sell it or rent it.

What A Realtor Does For Buyers

When a Realtor is working on behalf of a buyer, a Realtor basically works for free for his/her buyer, since the buyer does not pay the commission. A Realtor works with you to find your ideal home, searching a local multiple listing service (basically a database of all properties that all Realtors have access to). At the same time that the Realtor is assisting the buyer find a home, the Realtor is also assisting in trying to get the buyer a mortgage, often working closely with a mortgage broker or lending institution; It is ultimately the buyer’s decision on whom to use to get a mortgage, but it is often the Realtor who reminds and makes sure the buyer is performing due diligence on acquiring financing.

A Realtor is then responsible for submitting the negotiating and submitting your offer on a place the buyer desires. A good Realtor will assist the buyer in determining a good offer by showing the buyer comparable properties that have and haven’t sold in the neighborhood, so the buyer has an idea of what the home is worth. It is also common for a Realtor to offer the buyer negotiation suggestions in terms of strategy, likelihood of the offer going through, and plans of action of the offer is not accepted. If any counter offers occur, a Realtor is responsible for explaining the new terms and conditions of the contract, and any other changes that may affect the deal.

Assuming the offer is accepted, the Realtor is then responsible for overseeing the completion of the deal by ensuring all deadlines in the contract are met, such as completing the home inspection, home appraisal, home survey, etc., and also making sure that the financing is in order so that at the time of closing the deal, everything will be ready so ownership can be transferred over to the buyer.

What A Realtor Does For Sellers

A Realtor working for a seller is responsible for many things, and is paid the commission by the seller from the proceeds of the sale. One of the main duties of a seller’s Realtor is to market the property. A good seller’s Realtor will ensure quality photographs of the home are taken in the cleanliest state, with the proper lighting to project a high level of professionalism for anyone who looks at pictures of the home (if you are using a Realtor who doesn’t even take pictures/doesn’t know how to upload them to the internet, get rid of them!).

Further, the seller’s Realtor will do market research to properly educate the seller about the seller’s true home worth and what it can realistically sell for in a given market by showing comparable homes that have sold recently in the local area; Some distrustful Realtors like to ensure they get into a contract to list a seller’s home by exaggerating what the seller’s house is worth, telling them exactly what they want to hear, only to end up giving them a reality check later on after they are in binding listing agreement to sell the home with the manipulative Realtor.

The seller’s Realtor will negotiate on behalf of the seller, getting the highest possible selling point for the property. The Realtor will explain the difference between offers that have been submitted, the pros and cons of each offer (if they vary on terms and conditions other than price), stating which would be most beneficial to the client. The seller’s Realtor will also act in an guiding manner, checking up to make sure the buyer and buyer’s Realtor are meeting the deadlines specified in the contract to complete the deal on the closing date.

Question: How do Realtors get paid their commission, and who pays a Realtor’s commission? If I’m a buyer or a tenant looking for new place to live, do I have to pay a Realtor anything?

Answer: Under normal circumstances, a Realtor gets paid by the seller, and does not get paid by the buyer. The same goes for renters looking for a new place to occupy; The Realtor gets paid by the Landlord, not the potential tenant.

There are exceptions to this, but 99.9% of the time, this is how Realtors get paid their commission. It’s important to understand that even if you as a buyer/renter are working with a Realtor and are interested in a home listing that your Realtor isn’t associated with, that still does not change the way your Realtor gets paid. If your Realtor isn’t the listing Realtor (or seller/landlord’s realtor) for the property you are interested in, then the commission is simply split between the two Realtors, which is often the case when any real estate deal is done. In fact, in some areas it is illegal for a Realtor to represent a buyer and a seller on the same property, so this further adds to likelihood of the commission being split between the buyer’s Realtor and the seller’s Realtor.

Question: Are home inspections a requirement to buy a house? How do I know if I need a home inspection, and what are the benefits of getting a home inspection before buying a house?

Answer: Home inspections are not required to purchase a home, but it is strongly recommend to get a credible home inspector to inspect the property before purchasing it. Home inspections can save you thousands of dollars in unexpected repairs and problems, and the home inspection report is also extremely useful when negotiating the selling price of a home to a seller of a property that needs repairs.

The price of a home inspection is relatively cheap when you consider how large of a financial commitment purchasing a home is, so save yourself the headaches and get yourself a home inspection done by a professional home inspector.

I decided to take one of my prominent investing blogs which had a long domain I’d never been too happy with, and put a “Change of Address” request in to Google’s Webmaster Tools page. Almost immediately, my blog took a massive hit in traffic, and also permanently lost high placement in the main search queries that my investing blog excelled in. In some cases, my placement in search queries drop a few spots, in but in general my investing blog was sent into oblivion, no longer on the first, second, or even third search result page.

It’s worthwhile to note that over the course of several months, the traffic has recovered and is improving slightly. However, let this be a warning to all who are considering moving their website to a different domain: you will lose traffic, page rank, and google search result placement spots!

Update: It’s worthwhile to note, that if you do a change of address while your site is fairly new, there seem to be no negative consequences. I’ve used a change of address for my old real estate blog to this domain, and Google’s search index has updated perfectly, and without any drops to my placement and page rank.