The Buy vs Rent Comparison tool allows you to compare your client’s estimated monthly payments for renting or buying and provides an estimate of the home’s future value.
Creating your Buy vs Rent Report
To get started using the Buy vs. Rent comparison tool, follow the steps below:
- Choose which method you would like to use to compare Purchase Price, Desired Monthly Payment or Military BAH (Basic Allowance for Housing).
- For all three options you will need to enter a location (#MLS, address, county or zip code). Click the green search button with the magnifying glass icon. If the location is found, it will automatically populate below. If there are multiple results found, select the right one from the dropdown. Once the location is selected enter the value of the home you’re looking to buy or rent.
- You can also use the Classic Dropdowns to choose a state and county instead. Simply click the Use Classic Dropdowns above the search bar to toggle to this search feature.
- Depending on which option you chose for comparison, you will need to fill out slightly different information.
- For Purchase Price, enter the Purchase Value of the home and click on the green down facing arrow to generate the report.
- For Desired Monthly Payment, you will need to enter: Desired Monthly Payment, LTV Ratio, Rate and Term of Loan in years. Once filled in, click the green drop down arrow to generate the report.
- For Military BAH, enter: Monthly Allowance, Rate, and Term of Loans in years. Click the green arrow button to generate the report.
- A new section of the page will now appear. You should see four drop down tabs on the left side (Renting, Property, Loan and Home Ownership). All the information in these tabs are automatically filled out based on the area and the price of the home, but these can be changed depending on your customer's scenario.
- The Renting tab allows you to view and edit the monthly rent, renter’s insurance and the annual rent increase used in the comparison.
- The Property tab allows you to view and edit all of the property information such as the price, taxes, HOA fees and insurance.
- The Loan tab allows you to view and edit all the loan information for your customer. You can edit the loan amount, type, rate, insurance and closing costs.
- The Home Ownership tab will allow you to view and edit the years before selling, appreciation rates, location and tax information.
- Click Show Results to see the total net gain by buying a home. The net gain includes the cost to sell, cash flow difference, closing costs, gains such as appreciation and amortization and any tax benefit.
Go to the next article to better understand what's inside your Buy vs Rent report.