Scott T. Sohr is a land and real estate developer based in Nashville, Tennessee. Using excellent management skills gained from nearly three decades of experience in varied business enterprises, Scott T. Sohr has developed numerous successful residential neighborhoods in and around Middle Tennessee.
Scott T. Sohr knows there is no simple answer to the question: Should I buy or should I rent? Ultimately it is a very personal decision that only the consumer can make. Scott T. Sohr understands that the myriad questions and decisions can be overwhelming for someone searching for a new home and offers some guidance through the maze.
Scott T. Sohr believes that there is usually more to be gained by investing in home ownership than in renting. Although the extent to which the housing market will recover and the rate of house value appreciation remains an unknown, Scott T. Sohr is quick to point out there’s zero chance of recouping money spent on rent.
Scott T. Sohr says a few things to consider when making the decision to buy or rent include out-of-pocket expenses such as closing costs, down payment, which is typically 20 percent of the purchase price, the cost of yearly taxes and insurance, plus the condition of the property. Scott T. Sohr suggests that if the property is a “handyman’s special,” it is advisable to have the skills and time to do renovations or the new purchase may turn into a money pit. Scott T. Sohr adds that there is also the return on investment that investing the money could have earned instead of spending it on a down payment, the money saved on repairs and upkeep of a property, and the peace of mind gained by letting a landlord take care of any problems that arise. Scott T. Sohr acknowledges there are situations in which renting is preferable to purchasing.
While renting can be a logical choice in one part of the country, Scott T. Sohr cautions that it can be an imprudent waste of money in another. Because of manufacturing woes and job losses in areas of the country such as Cleveland, Detroit and Toledo, Scott T. Sohr says there are currently some incredible deals on real estate. Realtors call this a buyer’s market. Scott T. Sohr encourages buyers to be extra vigilant about the local market indicators before buying these types of properties. If a buyer plans to stay in the city for several years this can be an amazing find, but if they must sell and relocate in a couple of years it could be a financial disaster. Scott T. Sohr explains that selling a home in a depressed area is often very difficult.
Scott T. Sohr reiterates some things to consider before committing to buying, such as the local market, length of time the buyer plans to stay in the city, and the amount of funds available for out-of-pocket expenses.
If the buyer has looked at every angle, considered every possibility, and decides to purchase a house, Scott T. Sohr recommends they keep in mind the real estate mantra of location, location, location as they shop for their dream home.
A graduate of Franklin High School, Scott T. Sohr earned his bachelor’s degree at Auburn University and his MBA from Vanderbilt University’s esteemed Owen School of Management. Scott T. Sohr lives in Nashville, Tennessee, with his wife and four children.