Switch Realty Blog

The Benefits of Buying a Home, Compared to Renting

By: Dustin Hoffman, Realtor, Switch Realty 

April, 2025

Why Buying a Home Beats Renting: 6 Key Benefits Every Buyer Should Know

If you’ve been renting and wondering whether it’s time to buy a home, you're not alone. With rising rents and more people looking for long-term stability, the debate between renting vs. buying has never been more relevant. While both have their place depending on your lifestyle and financial situation, buying a home offers distinct long-term advantages. Here’s why purchasing a home is a smart move for many.

1. Build Equity, Not a Landlord’s Wealth

When you rent, your monthly payments go toward your landlord’s mortgage—or their pocket. When you buy, those payments help you build equity in your own property. Over time, this equity becomes a valuable asset that can be used for future goals like home renovations, investing, or retirement.

2. Stable Monthly Payments

Rent can increase every year—sometimes substantially—depending on your lease terms and the local market. When you own a home with a fixed-rate mortgage, your principal and interest payments stay the same for the life of the loan. That stability helps with budgeting and long-term planning.

3. Tax Advantages

Homeownership can come with significant tax benefits. You may be able to deduct mortgage interest and property taxes, which can reduce your overall tax burden. Be sure to consult a tax professional to understand how these benefits apply to your specific situation.

4. Long-Term Financial Gain

Historically, real estate tends to appreciate over time. That means the home you buy today could be worth significantly more in 10, 15, or 20 years. It’s not just a place to live—it’s a long-term investment that often outpaces inflation and builds generational wealth.

5. Predictable Housing Future

When you own your home, you’re in control. There’s no risk of being asked to move out at the end of your lease or facing rent hikes each year. That kind of predictability provides peace of mind and the ability to plan for the future without uncertainty.

Final Thoughts

While renting may offer flexibility in the short term, buying a home provides unmatched benefits when it comes to building wealth, stability, and freedom. If you're ready to take the next step toward homeownership, now could be a great time to explore your options.

As a local realtor, I’m here to help you navigate every step of the process—from understanding your financing options to finding a home that fits your lifestyle and budget. Let’s connect and turn your homeownership dream into a reality.

The Pop Up Tax: Tips for Challenging Your Home’s Taxable Value

By: Dustin Hoffman, Realtor, Switch Realty

May 31, 2025

I recently helped a client appeal their property’s taxable value this year to the local municipality, and I’m happy to report that we were able to reduce the property tax annual payment by almost $3,500 (or roughly $290/month). How did we do this? Can you also save money on your property taxes? Let’s find out….

Property Taxes - A Brief Background:

In Michigan, when you buy a property from a seller the Assessed Value of that property becomes “uncaped” or “reset” to align with the Market Value of similar properties in the area (and, using the property’s purchase price as a benchmark). Your city, township or municipality then uses the new Assessed Value to determine your property’s Taxable Value, which is then used to calculate how much you owe annually for property taxes. For new homeowners, sometimes receiving that first property tax bill can be a real shock. Many times property websites like Zillow or others don’t show potential buyers the “uncapped” estimated property tax payment. Rather, they base the property tax payment on the home’s current Taxable Value (which we know will be much lower). 

There are two primary reasons that may motivate you to appeal your property’s Taxable Value, in an effort to reduce how much you will owe. First, if you are the new owner of the property and you believe the new Assessed Value is higher than what you paid and/or what you believe the property is worth. Second, if you are the current owner, however, you believe that the Taxable Value is now higher than the Assessed Value of the property. 

Should You Appeal Your Property’s Assessed Value?

Before you make a decision to appeal, you’ll receive a notification in the mail from the Michigan Department of the Treasury that will contain your property’s “Notice of Assessment, Taxable Valuation and Property Classification.” This notice will detail the Assessed Value and State Equalized Value (approx. 50% of your home’s fair market value) and the Taxable Value (which will equal the Assessed Value if you are the new owner of the home). If you believe that the Assessed Value is too high (remember, take the Assessed value and multiply it by 2 - this will give you what the Assessor believes your home is worth) you may want to make an appeal to your local tax board (remember, not all appeals are successful). 

How Do You Make An Appeal?

Sometimes, the Notice of Assessment will have instructions on the bottom for when/how to appeal your property’s Taxable Value. Other times, you’ll need to check with your local city, township or municipality. Once you make the appointment for the appeal hearing (or, prepare a report to submit), you’ll need to prepare your evidence and presentation. Essentially, you’re working to prove that based on current property values and historical taxation rates, your property is being overvalued by the Assessor. How? Here are some things to include in your presentation (and some things to avoid): 

• Determine where your property is, in relation to the “assessment zones” that each city, township and municipality use to determine property value. 

• Based on your property’s location, try to find as many comparable homes as possible that have sold within the last year (you can go to 2 years, however, more weight is given to homes sold in the past year). In this comparable home set look for what the property sold for, the Assessed Value as of today (this is all public information that can be obtained through your municipality’s website or offices) and how this compares to your home (what you paid, your home’s relative condition and other factors). If there is a difference here, this may strengthen your argument that your home is being over valued.

• For the comparable home set, calculate the ratio of Taxable Value to the Sales Price. For example, if a home was purchased for $200,000 and the Taxable Value is $100,000; the ratio is 0.50 or 50%. If your home’s ratio is above the average ratio for the comparable home set (or even above a few of the homes), this may further strengthen your argument that your home is being over valued.

• Finally, take a look at properties currently being listed for sale in your area. How does your home compare? If you had to set a listing price for your home based on the Assessed Value would your home be competitive (e.g. is your home updated vs other home’s currently listed?)? If your home wouldn’t be competitive, this could be another point to consider that may support your conclusion that your home is being overvalued. 

When you meet with your tax board it’s also important to stick to the facts and numbers about your property. Although it may be tempting to ask or discuss “how” your taxes are being spent, this is a topic that is outside of the purview of the tax board and will only distract from your presentation (and, take away from your allotted time - some tax board appointments are only 15 minutes long!). 

Involve a Real Estate Professional and/or Attorney:

There’s a lot to research and consider when appealing your home’s Assessed Value. I always tell clients that they may want to consult with a real estate attorney and/or a licensed real estate professional as a first step before beginning the appeal process. Remember, the recommendations I offer here are just that - recommendations. Everyone’s situation is different and I can’t stress enough how important it is to involve a licensed professional (attorney and/or real estate agent) in your appeal process. And, a good Relator will continue to provide you with guidance and support after the home sale, in order to help advise you on issues just like this. 

The Switch Realty Difference:

At Switch Realty, our real estate agents and attorneys have experience in working with tax boards and advising our customers on the best course of action. We firmly believe that our job doesn’t stop when the closing ends. Looking to buy or sell a home? Have questions about your property taxes? Give us a call and experience the Switch Realty difference. Lower fees, more value for our customers and more personal attention. 

*Note: the content presented in this email is directional only. Consult a real estate professional and/or attorney about your specific situation before proceeding with any tax board appeal.