Profile picture for bnorth06

Rent to own

With the way the economy is, do alot of home sellers consider doing a rent to own?
  • February 20 2011 - Valparaiso
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Answers (5)

There are some sellers that will consider a rent to own situation.  They can be risky for the buyers also.  If a seller does not make the mortgage payments the buyers can be without a home and homeless. 
I would definitely advise getting a lawyer to write up any rent to own contracts.
  • March 16 2011
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Hi Bnorth06,

[content removed by moderator due to self-promotion]
  • March 09 2011
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Profile picture for wetdawgs
Most sellers won't consider a rent to own because they don't have the financial flexibility to have a rental that may or may not become a sale.

Only a tiny percentage of rent-to-own are actually turned into true sales, so if an owner spends two years renting then has to put it back on the market they have to spend time & money spiffing it up back to good condition for sales.

It also doesn't tend to be a good deal for the buyer.  Usually a substantial down payment is required (non-refundable) and the only part that goes to "own' is the amount above and beyond the fair market rent for the property.
  • February 20 2011
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There are a lot of rent to own that are scams. Although there are some legitimate programs they are far and few in between. If you are worried about coming up with the down payment there are USDA 100% loans which may work for you.  There are ways for others that may not have closing costs to include those in the offer so that the seller pays closing costs. If its your credit that may not be tops it may not have to be as high as you think. 
  • February 20 2011
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bnorth06,

Consider the following:

1. Many home sellers cannot afford to do rent to own.  Rent to own involves having the resources to live somewhere else while renting a property they want to sell.

2. Some home sellers do not want to deal with the risk of having tenants.

3. Lastly, the idea doesn't even cross many home seller's minds that they can sell under a rent to own process.

Your Real Estate Geek,

 Rich
  • February 20 2011
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