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Answers (6)
- Wes Black
- Contributions:509
This is happening quite often in Louisville and it can work.
- Kamaaina Realty
- Contributions:54
I actually had a customer who almost went the "rent to own" route. Luckily we were able to find a place with a traditional loan and it all work out. A couple of months later we found out that the "rent to own" property some foundation problems associated with it. Best of Luck !!!
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
Rent to owns, as far as I have seen , rarely work, either the person renting to own, tires of the place or the landlord gets tired of waiting. Perhaps you should sit down with a lender and try to repair your credit, if that is the issue or spend the next year putting away some hard savings. If you do go the 'rent to own' route, make sure your lease is looked at by an attorney. I don't know whether I would ask for the price to be locked in, depends on exactly where you intend to purchase and how long that will be, if prices drop a little more, you don't want to pay the price you locked in on....
- wetdawgs
- Contributions:26833
Some things to know about "rent to own".
Most owners want a substantial, non-refundable down payment.
The amount which goes to purchase is only the amount above and beyond the fair market rent. This also tends to be non-refundable.
The price is determined at the time of the contract, so if prices decline you may find the place does not appraise at the agreed upon price. (Then you lose all your money or have to come up with cash to make up the difference).
These tend to be losing situations, rarely coming to closure. Why not rent traditionally for a couple of years to get ready for a regular purchase?
Most owners want a substantial, non-refundable down payment.
The amount which goes to purchase is only the amount above and beyond the fair market rent. This also tends to be non-refundable.
The price is determined at the time of the contract, so if prices decline you may find the place does not appraise at the agreed upon price. (Then you lose all your money or have to come up with cash to make up the difference).
These tend to be losing situations, rarely coming to closure. Why not rent traditionally for a couple of years to get ready for a regular purchase?
- Pat Pribisko, "Pat Pribisko"
- Contributions:1426
I suggest that you retain an attorney who handles residential real estate matters to prepare the documents for you, to be sure that your interests are totally covered. It would also be good to use a Buyer's Agent to locate potential properties for you. A Buyer's Agent's services are at no charge to you, as the Seller pays all commissions.
- Geofrey Merino, "GMerino"
- Contributions:445
Is this a house that you see yourself in for the next 5 to ten years? With so many homes for sale, you have many choices especially in California. Many people will do a lease option to buy when they have less than perfect credit and down payment being an issue. If I were doing a lease option to buy I would use a real estate agent still and make sure that your price is locked in fair. Just be careful!
Interested in Rent to Own
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