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Answers (5)
- David Hoggatt, "Roseville_Broker"
- Contributions:471
One of my customers recently received a marketing letter from a company that claimed to be in contact with people that would like to RTO their home.
I called the number on the letter and spoke with a sales person that was unable to provide much information about the process and was unable to provide me with examples of successful transactions. He said that he would have his boss call me back but I never heard from them again.
It seems like it could be a legitimate business but I have yet to find a situation in which it would make sense in my local market.
I would advise everyone to be wary of these offers and remember that if it sounds too good to be true than it most likely is not.
I called the number on the letter and spoke with a sales person that was unable to provide much information about the process and was unable to provide me with examples of successful transactions. He said that he would have his boss call me back but I never heard from them again.
It seems like it could be a legitimate business but I have yet to find a situation in which it would make sense in my local market.
I would advise everyone to be wary of these offers and remember that if it sounds too good to be true than it most likely is not.
- Richard Schulman, "RichardSchulman"
- Contributions:2108
While I wouldn't call it a "scam", I would tell you that there are many misconceptions about it, that you should be aware of. As this is a question I get asked often, I wrote an informative blog about it to help consumers such as yourself, to better understand the situation. Please visit here: http://richardschulman.com/2011/11/14/truthaboutrenttoown/ for more help and information on the subject.
Richard Schulman
Keller Williams Realty
Richard Schulman
Keller Williams Realty
- Kevin McDonald, "Kevin_McDonald"
- Contributions:173
Rent to own programs are often differ from one seller to the next and to really protect yourself you should have a Real Estate Attorney review the contract verbiage. The rent to own or lease option programs are becoming more popular in our market as there are many buyers that have the income just not the credit to purchase. It is a benefit to the buyer when the market is stabilized or increasing to lock in a future price. A Realtor or Appraiser may be a good contact to make sure you are not overpaying now or potentially in the future. Simply protect yourself by researching the purchase fully making sure it is the right move for your situation.
- wetdawgs
- Contributions:26833
Rent to own can be real, but in most cases is a very expensive way to rent for a couple of years. Very rarely do these close and become "owned".
It is most likely an option where unrealistic sellers meet unqualified buyers.
Some features that can waste your money:
a. Substantial, non refundable down payment.
b. Only the amount above fair market rent goes into the "purchase", and that is not refundable.
c. The contract price is set day 1, so if house prices decrease it is not likely to appraise at the agreed upon value.
It is most likely an option where unrealistic sellers meet unqualified buyers.
Some features that can waste your money:
a. Substantial, non refundable down payment.
b. Only the amount above fair market rent goes into the "purchase", and that is not refundable.
c. The contract price is set day 1, so if house prices decrease it is not likely to appraise at the agreed upon value.
- Best Miami Beach
- Contributions:20
Rent to Own is not a scam, but it greatly favors the seller. When you rent to own, you have no guarantee that the list price when you begin your lease will be the same at the term of your lease. Be careful when renting to own, since the value can be assessed differently by the seller at any given time. We hope this helps.
Is Rent to Own a home, a scam??
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