When you start the journey of buying a home, your first call is usually to a real estate professional. As an insurance agent, I see this through the lens of protection—but it’s also about wealth creation.
Many people hesitate to jump into the market, thinking that renting is “safer” or “cheaper.” We spoke with Deb Sarsany with The Real Estate Group and she broke down the numbers and showed us how because Waiting to buy isn’t just a delay; it’s a $1,500/month ‘convenience fee’ paid to someone else’s mortgage.”
The True Cost of Renting vs. The Power of Owning
Every rent check you write is money you will never see again. Based on current local market data, let’s look at what you pay out over 5 years versus what you could be building in equity using an example of purchasing a $150,000 home:
What Renting Really Costs
Aversge rental in Springfield IL- $1,500/mo = 1 yr: 18,000 I 2 yr: 36,000 I 5 yr: 90,000
What Owning Looks (examples is using $0 down payment)
Principal & Interest: 911, Taxes: 312,Insurance:150, Private Mortgage Insurance 100, Total Monthly Payment (PITI)= 1,461
Total Paid Over 5 Years: 87,660
How Your Equity Grows
Principal Paid in 5 Years: 10,196
Home Value After 5 Years at 3% Appreciation: 173,891 (Gain: 23,891)
Total Equity After 5 Years: 34,087
Side-by-Side: Renting-vs. Owning
Renting at $1,500/mo for 5 years: $90,000 paid, $0 equity
Buying at $1461/mo for 5 years: $87,660 with $34,087 in equity
In just five years, owning a modest $150,000 home—with a monthly payment of roughly $1,461 (including Principal, Interest, Taxes, and Insurance)—can net you nearly $35,000 in total equity. That is a massive head start on your financial future compared to the $90,000+ lost to rent.
Why You Need a Pro (Like Deb Sarsany) to Get There
It’s easy to look at those numbers and want to jump in, but navigating the path from renter to owner requires a professional “navigator.” This is where Deb Sarsany and her team become invaluable:
- The “Net More” Factor: While some think selling or buying without a Realtor saves money, national data shows agent-assisted homes sell for a median of $425,000 compared to just $360,000 for FSBOs. That’s a $65,000 difference that more than covers professional guidance.
- Visual Dominance & Staging: As an Accredited Staging Professional (ASP®), Deb has the unique expertise to spot a home’s best features as well as see the “Lipstick on a Pig”. Only a pro like Deb can give you the visual “eyes” on every available listing in the Springfield market, ensuring you find a home that fits both your budget and your insurance requirements.
- Preparation Strategy: Deb’s team provides tips on what needs to be handled before a contract is signed preventing insurance “red flags” like old roofs or outdated systems from killing a deal.
The Bottom Line
Renting gives you a roof over your head, but it doesn’t give you anything back. Owning a home is an investment in your future.
If writing that rental check isn’t giving you that warm and fuzy feeling, I highly recommend reaching out to Deb Sarsany & Team. They have the data, the local knowledge, and the expertise to move you from paying a landlord to paying yourself. Deb can show you “it not just about buying a house – It’s about investing in your future”.
Once you find that property, give me a call—I’ll make sure that growing equity is fully protected with the right policy.
