Profile picture for Jane352

Do real estate agents make a commission from rent to own properties?

If we were to utilize an agent to assist us with finding rent to own properties would the agent make a commission once we find a property? How does the agent get paid? 
  • September 27 2012 - US
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Answers (5)

Hello there,

Real Estate agents can and do charge for a variety of services. Whatever you can think of to do with real estate, an agent could charge for depending on his service structure.

The best thing to do is to find an agent with that expertise.
Cheers!
  • March 27 2013
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It would depend on the state but more imporatantly the agreement you make with the rela estate professional.  In Colorado most rent to owns commissions are paid by seller at tim eo f lcosing but it would depend on the contract etc...best to call a few real estate professionals in your area and aks lots of questions...best o fluck
  • September 27 2012
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Profile picture for Ofe Polack

You have received very sensible advice from the previous responders, so I am going to concentrate on your question.  The listing agent will receive a rental commission from the rental agreement.  And when you close a commission on the sale of the property.  I suggest that if you go ahead with the idea, to meet with a real estate attorney and work out the details.

  • September 27 2012
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Profile picture for Outer Banks N C
Many people feel rent to own is a good deal and I fear they have no real idea how it works or they would probably run away from it as fast as they can. It is a bad move, in my opinion, and a bad arrangement for a renter. It can be profitable for a landlord if the renter defaults. To make the rent to own work you still MUST get a loan form a lender to buy the house for the amount agreed on today in a year or two. Who knows what the house will really be worth in a year? Will the lender lend you money in a year or two? If not then you lose and you lose the deposit and all the option money you added each month to the rent. It's an awful thing for most renters and very few work out. They are also very hard to find so you will be limited what you can find.

Just rent now and buy when you can.
Tim
  • September 27 2012
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Good Morning.

It depends on the situation, the agent, and the terms of the agreement. The landlord/seller would need to agree or it may be where the buyer agrees to pay the agent.  The problem is that most transactions are not payable until completion so if you are in a 1 year or longer rent to own agreement or if the transaction does not close, the agent doesn't get paid.

May I ask you what is driving you towards a rent to own?  The challenge with rent to own properties is that buyers often pay far more then market value for the homes and the rent prices are often inflated as well.  Additionally, it usually does not result in a mutually beneficial transaction for the parties involved.

If the circumstances are due to financing challenges, you may want to consider an owner financing scenerio instead.  They can be much more agreeable on terms and most often allows for a win win for both parties.  Closing costs are typically lower, interest rates competitive, and terms are negotiable from down payment to repayment/length of loan.

If you have any other questions, please feel free to contact me, I am happy to help.  Good luck!  I hope you find the perfect home.

Regards,
Charlene Weston
Realtor/Team Leader

  • September 27 2012
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