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Should I rent or buy in Greeley Colorado?

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It’s a very interesting time to move in Greeley, Colorado. With home prices trending strongly up, many people wonder whether or not it is smart to buy now. Are we at a peak or just in a strong market that will continue to appreciate? You can read all about the main factors in our article Will home prices continue to go up in Greeley Colorado for more info.

But it’s not just home prices. There’s a lot to consider when determining to rent or buy. Since we help people buy, rent, and rent-to-own, we can help you figure out what your best option is.

Should I buy or rent in Greeley?

But apart from prices, there are other considerations when deciding whether to rent or buy in Greeley Colorado and the surrounding areas. We at The Ferguson Team offer both homes for sale and rentals, so have solid insight. Here’s are a few of the considerations.

1. Home and rent prices are increasing

While home prices have gone up, rent prices are also increasing. In fact, when home prices go up, many landlords take the opportunity to sell their rentals and capture the money. This means their renters get kicked out and have to find a home. If enough landlords do this, that puts a tight squeeze on the market.

In fact, I was renting out one of our homes last week, and nearly every applicant had the same story: my landlord is selling. It stinks for the renter to be forced out of their place, even if they’ve been great tenants. And now they have to compete with other applicants and are likely going to pay more for less.

Here’s a look at home sales prices in Greeley:

Median Home Sale Price in Greeley

Median Home Sale Price in Greeley

And here’s a look at rental’s price trends in Greeley:

Rental Price Trend in Greeley Colorado

While rents haven’t gone up as much as home prices, they are still on a strong uptrend. And if we see a new wave of landlords selling their home, I expect rents to start spiking.

2. You can buy cheaper than renting

The whole reason we have landlords is because it is cheaper to buy a place than it is to rent (that’s how they make money). So if you’re able to buy, money is generally in your favor.

Right now, interest rates are very low

The two big considerations that will determine if you can buy are your credit score and debt-to-income ratio. Assuming you meet the minimums, which change regularly, you should really consider buying. If you’d like more info on determining if you would qualify to buy, contact us here.

3. You build wealth by buying, rather than spending it renting

When you buy a home, you realize some great benefits:

  1. As the house appreciates in value, that’s money available to you whether you sell, refinance, or just enjoy the feeling of know you have a bank of money. Historically, home prices may go up and down, but over time trend solidly up.
  2. Be better prepared for retirement by paying down an asset you own.
  3. Gain tax incentives on mortgage insurance and interest. The tax write-offs I get each year are some of the biggest write-offs I have and make a huge difference in my return. Check out this article on nerdwallet.com to learn more.
  4.  If you’ve lived in the home for 2 or more years, you can sell it without paying tax on the gains.

4. Renters have fewer expenses

While the first three bullets point strongly to buying a home over renting, there are a few downsides. Namely, you need to pay for fixes and updates to the home as things happen. In my experience, these costs never end up being too much. And if there is a major issue, that’s why you have insurance.

Here’s some costs you may face as a home owner:

  1. Repairs
  2. Upkeep
  3. Utilities (which may apply to renters too)
  4. Taxes
  5. Insurance

But again, even with these expenses, most landlords are still able to rent places for more than they pay, meaning the equation is in favor of the home owner.

5. Renters have better flexibility, but less control

If you’re not sure where you want to settle or plan on moving regularly, it is almost certainly smart to rent. Buying a home is generally more of a commitment than renting. It will be tough to buy a home and then move 1 year later without it costing you. So if you’re not settled, consider renting.

On the flip side, as a renter, you may not be ready to move, but your landlord might want you out. As I mentioned earlier, this seems to be the trend here in Greeley. If your landlord wants to sell, there may be little you can do. Additionally, unlike a mortgage, your landlord can raise rents at renewal. The landlord may also limit how you use the house, what modifications you can make, and whether or not you can have pets.

6. Do I need more cash to buy or rent?

With renting, you typically need first and last month’s rent, along with a security deposit. That is a good amount of cash.

For buying a home, you have a down payment and closing costs to worry about. However, there are numerous programs currently available to provide incentives to buyers. These include grants you don’t need to repay. There are general grants, first-time home buyer packages, as well as special grants in Greeley depending on where you work.

Ultimately, you can get in to a home for as little as $1,000. But the more you put down, the lower your monthly payment is. For more info on grants and programs, check out our first-time home buyer page.

7. Is Buying a home difficult?

A lot of people we talk to are frustrated with renting, and simply don’t realize they can buy. Or they may be turned off simply because they don’t understand the process.

Don’t worry, that’s what real estate agents are here for. We’re here to help make the process understandable and easy. And the good news is, we don’t cost anything for buyers. So if you want to see if home buying will work for your situation, you can just give us a no-risk call by contacting us here.

What if I want to buy, but I’m not quite ready?

Alright, buying has a lot of awesome benefits, but maybe you’re not ready. Maybe you aren’t sure if you want to stay in the area. Maybe you need to work on your credit. Maybe you just want to get to know your surroundings before quitting.

But, you’d like more choice. You’d like to shop the homes for sale instead of just the ones for rent.

There is, in fact, a great middle of the road option. Check out our Rent to Own Program. It allows you to shop houses for sale, then we have a company buy the house for you. You in turn rent from them and set a price you can buy the home for later, if you want to.

If you end up loving the house and the area, you can buy the home at a price you’ve already set, which is great. It’s a fantastic program and can be just what a lot of people need to improve their housing situation.

Buy or Rent – We Can Help

If you’d like to talk to someone about renting or buying in Greeley, just contact us! We can help you rent, buy, or rent-to-own. Since we do all three, we’ll help you figure out what’s best for you.

Ready to talk to a Greeley Real Estate Agent?

We love to hear from you.

Call us at 970-573-6441 or

CONTACT US
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