Profile picture for cpinkston723430

i would like to rent to own

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 19 2013 - Pontiac
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (3)

Profile picture for wetdawgs
While the theoretical concept of rent with the option to buy may seem attractive, many of the realities are considerably less so.  In other words, it is a great way to lose money.

Owners who will consider rent to own are very rare, so it will cut down your options for properties considerably.   I consider it much smarter to spend a year or two working on improving your credit and  saving up a good down payment  while doing a traditional rental.   Yeah, it is tough to move but it even tougher to lose a lot of money attempting to buy.

Some features of rent to own:

1.  Down payment required - often substantial (say 10%, 20% or more) and is non-refundable if the potential buyer doesn't purchase.

2.  Monthly rental is above fair market rent, with the only amount going to purchase is the amount above the fair market rent.  This is also not refundable.

3.  If not qualified for financing at the agreed upon  time and price, then you lose everything. 

4.  The price is agreed upon at the beginning of the contract, and who knows where house prices are going.

5.  You still depend on the owner to pay their mortgage.   If they fail, you lose.

If you do get involved in this, please involve an attorney in the contract.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 20 2013
We agree with Margo's response about 'rent to buy' being a tricky process in deciding a fair market value that far in advance.

We also agree that renting long term can be costly and buying would certainly benefit someone who plans to stay in the same place for 5-7 years.

With that said, it would be good to get all things in order and make contact with a mortgage professional to find out what you qualify for. At the same time, you should find a real estate professional who can put you on an automatic email program to receive properties that will match your price range and criteria. This will better educate you to the market and what to expect once you are ready to make the move. You can also visit weekend open houses conducted by brokers to get a sense of value.

The better prepared you are, the more likely you will property that will give you years of howneowner happiness!

Good luck! 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 20 2013
Rent to own is a little tricky because with the market changing, no one knows what the value of a home will be in a year / 2 years from now, so they don't want to lock into a purchase agreement. 

As a tenant, most leases will include that you have first right of refusal to purchase the property IF the landlord wishes to sell it at the end of your lease. 

Renting is much more expensive then buying though. Have you already spoke to a mortgage lender to see if you are able to buy? 

Feel free to contact me for more information.

Margo Borkin
Real Estate One
[Promotion removed by Zillow moderator. Please see our Good Neighbor Policy.]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 20 2013
 
Related Questions
i would like to rent to own
Profile picture for wetdawgs
Latest answer by wetdawgs
June 20 2013 | 3 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 1711 Inverness St, Sylvan Lake, MI Home For Sale
    1711 Inverness St, Sylvan Lake, MI 48320

     For Sale: $119,900

    • Beds: 2
    • Sqft: 912
    • Baths: 2.0
    • Lot: 6969
  2. 1798 Warwick St, Sylvan Lake, MI Home For Sale
    1798 Warwick St, Sylvan Lake, MI 48320

     For Sale: $165,000

    • Beds: 3
    • Sqft: 1249
    • Baths: 2.0
    • Lot: 8712
  3. 2619 Depew Dr, West Bloomfield, MI Home For Sale
    2619 Depew Dr, West Bloomfield, MI 48324

     For Sale: $144,900

    • Beds: 3
    • Sqft: 1330
    • Baths: 2.0
    • Lot: 11325