The Cost of Renting vs Buying in DC

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A lot of people think that owning a home is more expensive than renting, but this isn’t the exact truth. There are a lot of benefits to buying a home, and sometimes it can be less expensive than renting.

In the spreadsheet, I have chosen a home with a monthly payment of $3,500 dollars. This is a similar payment you would make on a nice two bedroom condo in the area. Over the course of five years you would pay $232,076 if you were renting, and you would pay $223,406 if you were buying. However, when you buy, that invested money goes back into your pocket.

When you pay rent, you’re basically just throwing money away. You’re paying someone else’s mortgage off, so why not pay off your own? At the end of the 30-year loan on this home, you would have a $750,000 property in your portfolio. If you rented, you would have nothing to show for spending all of that money. 

I often help buyers decide whether they should rent or buy. I think it’s always better to buy unless you’re going to be moving quickly. Rental prices are only getting higher, and interest rates are supremely low right now.

Please don’t hesitate to contact me if you have any questions or feedback. I look forward to hearing from you!

Beware of Zillow's DC Home Estimates

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Want to buy a home? Search all homes for sale.

We recently did a case study about Zillow, and we found that Zillow underpriced homes that we had sold by an average $9,000. That's a ton of money to leave on the table!

It's been estimated that Zillow's home estimates are only right 7% of the time. That means that they are wrong 93% of the time! That is a terrible success rate.

Remember, Zillow can't take features or upgrades on your property and compare them to other recently closed homes in your area, even though doing so gives you a more updated value on your property. Zillow doesn't walk through your home, and that's where my team can come in and place an accurate value on your home.

Ultimately, if you want the most accurate price for your home, make an appointment with a real estate professional. We will go over your home and the local market data in order to give you the most accurate home value. You can also use our free home evaluation!

If you have any questions, or if you're interested in a home valuation, give us a call or send us an email. We look forward to hearing from you!