The 5-minute Buyer Consultation
  • 22 Jul 2022
  • 3 Minutes to read
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The 5-minute Buyer Consultation

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Looking for a Buyer's Presentation? Our teams download the Brivity Mortgage Calculator and use the Value of Home Ownership tool.

People often ask us for a copy of our Buyer's Presentation. Our teams download the Brivity Mortgage Calculator - which is free with no sign-in in your App Store. Buyers can download it too so they can play with the affordability calculation, the mortgage calculator, and take themselves through the Value of Homeownership tool when they have a set purchase price.

We open the Value of Home Ownership tool in the app, then talk them through the value of buying a home when you calculate their buying price, average home appreciation in your market (maybe tame it back for the coming year), current mortgage interest rate, income, and tax filing status -> then you'll get all the money they make off of appreciation, tax deductions from mortgage interest, and amount paid off. It's a LOT of money they totally miss out on when renting. FOMO!

See screenshots below for using the Value of Homeownership tool with Columbia, SC as the example - a market that has not been as fast-moving as others. We reduced the appreciation by a few percent to a guess of the coming year. You'll want to know your market's average appreciation rate by Googling "average home appreciation in [town]." I made the purchase price $250k.

The Value of Homeownership Examples & Scripts

image.pngThanks for taking time to meet with me today!

Would you mind if I ask you a few questions to show you how you can make an extra $30k or more per year simply by owning a home?

Appreciation: $37,500

image.pngThis is money you will get back after to sell the home or that you can borrow on to remodel the home, invest in a business venture, or put a downpayment on an investment property.

The cool thing about appreciate is that this year it goes on your purchase price, but the following years, it compounds on the value of the property that year. So $250k + $37,500 = $287,500. Then the next year $287,500 x 15% appreciation will be another 43,125.

 It's like a bank account that explodes a little more every year. Pretty cool, huh?

Principal Reduction: $2,573

image.pngAs you pay off your loan, like other loans, you pay the balance down each month which also feeds to create equity in the home.

When you start paying off the loan, it's mostly interest, but as you continue paying off the loan over years, the monthly payment starts to cover more and more of the principle.

You can increase this dramatically if you can make 1 additional principal payment per year and pay off your mortgage way ahead of time since there would be less principle to charge interest on each month.

Tax Savings: $2515

image.pngYou mentioned you are concerned about the rising interest rate. The good news about that is that interest and other costs paid on a loan are tax-deductible!

In your first year of paying a mortgage, you should get back $2515 when you file taxes. The other thing to know is that you marry the house, but you date the rate. You can refinance as soon as rates go down again.

Summary Total: $42,588

image.pngIn total, the first year alone if you bought a home at $250k per day, that would be like earning an extra $42,588 this year alone, and that will compound on appreciation year over year as I mentioned earlier.

Divided by 12, that's like earning an extra tax-free $3549 per month in the first year (if you live in the home at least 2 years).

Tell me, what does renting do for you? Do you see the value in moving forward with a purchase sooner than later?

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