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Evelyn Fred's Blog

By Evelyn Fred - (773) 981-2005 | Broker in Chicago, IL

Rent to Own, Good or Bad Idea?

Field Guide to Buying vs. Renting

(Updated May 2010)

Is it better to Buy or Rent? Whether renting is better than buying depends on many factors.  The information listed here will assist you in helping answer this question. Included are statistics and studies on homeowners and renters as well as financing options and tips. (M. Glick, Senior Information Specialist)


Rent-to-Own Deals: Smart Questions to Ask...

For Sellers:

  • Who will tend to the property and pay for routine maintenance?
  • Who pays for major repairs?
  • What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?
  • Will you manage the property yourself, or hire an agent?
  • What if the renters change their minds? Who keeps the money in the escrow account?
  • If the buyers change their minds, what will be required to put the property back on the market?

For Buyers:

  • How much of the rent is going to the down payment?
  • How locked in are you if you change your mind?
  • What will it cost you to get out of the deal?
  • How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?

Source: REALTOR® Magazine Online.

Comments

By Cecelia Marlow,  Sat Jan 15 2011, 18:43
Great article Evelyn! Very good take aways for both buyers and sellers. With more people considering rent to own it is important for both sides to make informed choices.
By Aimee Renkes,  Mon Jan 17 2011, 08:57
Concise questions to consider, and it points out that not all of the rent is going toward downpayment...a common misconception of the rent to own program.
By Pat and Steve Pribisko,  Mon Jan 17 2011, 09:13
Good post re rent to own.
By Geneva Parker,  Sun Mar 11 2012, 19:36
Nice questions and answers to ponder!!

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