More Americans Choose Real Estate as the Best Investment Than Ever Before

Americans’ opinion on the value of real estate as an investment is climbing. That’s according to an annual survey from Gallup. Not only is real estate viewed as the best investment for the ninth year in a row, but more Americans selected it than ever before.

The graph below shows the results of the survey since Gallup began asking the question in 2011. As the trend lines indicate, real estate has been gaining ground as the clear favorite for almost a decade now:

If you’re thinking about purchasing a home, let this poll reassure you. Even when inflation is high like today, Americans recognize owning a home is a powerful financial decision.

How an Investment in Real Estate Can Benefit You During High Inflation

Because inflation reached its highest level in 40 years recently, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board, and that includes goods, services, housing costs, and more. When you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increases on one of your biggest budgetary items each month.

If you’re a renter, you don’t have that same benefit, and you aren’t protected from these increases, especially as rents rise. As Danielle Hale, Chief Economist at realtor.com, notes:

“Rising rents, which continue to climb at double-digit pace . . . and the prospect of locking in a monthly housing cost in a market with widespread inflation are motivating today’s first-time homebuyers.”

When Inflation Has Risen in the Past, Home Prices Have Too

Your house is also an asset that typically increases in value over time, even during inflation. That‘s because as prices rise, the value of your home does too. Mark Cussen, Financial Writer for Investopedia, puts it like this:

“There are many advantages to investing in real estate. . . . It often acts as a good inflation hedge since there will always be a demand for homes, regardless of the economic climate, and because as inflation rises, so do property values. . . .”

And since rising home values help increase your equity, and by extension your net worth, homeownership is historically a good hedge against inflation.

Bottom Line

Buying a home is a powerful decision. It’s no wonder why so many people view it as the best long-term investment, even when inflation is high. When you buy, you help shield yourself from increases in your housing costs and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.

More Americans Choose Real Estate as the Best Investment Than Ever Before is available on Complete Realty Team. See more at: Complete Realty Team - Ken Mandich - Real Estate Agent ERA Sunrise

Do You Need A Real Estate Agent To Buy A Home?

Some people don't understand or trust real estate agents, or may feel that they are able to do the same job a real estate agent can do. People love or hate their real estate agent, it all depends on the successfulness of the job they do for their clients.

At times buyers and or sellers might work out well without a real estate agent, however that is not always the case. A great real estate agent can bring a multitude of usefulness to any real estate deal, but for some customers an agent is not always needed. Most customers will get more out of the transaction using a real estate agent than doing the transaction alone.

Some sellers are able to find a buyer on their own, using an agent can assist you in getting more money out of the deal. According to National Association of Realtors you can net about 22% more, depending on what the market is doing at the time of the sell.

Depending on the market you might need to be able to juggle a multiple offer situation. Be ready to handle any lawsuit that might immerge and any additional cost that might arise while closing the deal. The opposite of the multiple offer can affect you just as hard with fewer buyers and need to have the real estate agents assistance to hook a buyer.

More people buy a home using a real estate agent, about 80%, if you don't have an agent you might not been getting all the exposure you need or want. Real estate agents are experts in possessing the intimate knowledge of the area and be able to direct you according to your needs and wants. Real estate agents will know what houses are selling for in the area and make sure the price is right for you, buying or selling.  

Real estate agents can also make sure you have all the insurance information you will need. The price of insurance policy can make a huge difference. Insurance is often over looked by individuals.

There are so many more factors that real estate agents play into such as staging, networking with other agents that might have a buyer or seller that you need, pricing knowledge, marketing experience, professional photographer, reliable contractors and inspectors, negotiation experience and most importantly the ability to make sure a buyer is qualified to buy so the deal doesn't fail in the last minute.

Selling or buying a house without a real estate agent is always possible. You don't need a license to do this on your own, if you feel you are capable then you can do it. You might always that the thought "Did I get the best deal?". It is a great deal of work to do this on your own, that is what you are paying for experience and knowledge to make sure all bases are covered. 

You do not need a real estate agent to buy a house, you might benefit for having someone on your side. The benefits may outnumber the little bit of money you might save. To most people it is worth the time they save and the fact they get the house they want without as much effort as doing all that work themselves. There is a lot of paperwork and it can get complicated if you're not used to reading legal documents. 

There are different types of agents buyers agents and seller agents and they are supposed to put their client's needs first. Please make sure you have the right agent for your needs. Do some research to make sure your real estate agent will work as hard for you as they would themselves, after all you will be spending  good amount of time with them and you'll want to get along and be able to trust them. 

If you are looking for a buyer's or seller's agent, or just need some information or have questions, please feel free to reach out to me at (404) 410-6465 anytime.