You really should consider consulting with an attorney who specializes in real estate and have all paperwork reviewed. Rent to own is really not a good idea, it is risky and you could stand to lose money.... more
There are no laws requiring that part of your rent needs to be credited towards a down payment. If it was agreed to in your lease that would be a different story. I've been involved w/a couple similar situations and we did set it up that way because the intent was to purchase all along. We actually did an offer to purchase up front w/a closing date set down the road. The purchase price & rent are agreed upon up front along w/the amount credited per month of each month of rent paid. That keeps the price from unexpectedly changing by either party & each party has some skin in the game to keep the deal glued together.... more
Too many variables to be considered here. On the surface - no, 90-92% of list as an initial offer would generally not be considered a "low ball". What we don't know is:
1. How much the seller owes on the property. It's possible they are at their "breakeven" point and can't afford to bring money to closing to cover the balance as stated below.
2. How motivated is the seller? If it's been on the market 400 days, and they've only dropped the price once - it doesn't seem like they are in a huge hurry to dispose of the property.
3. What do the comparables say? Is the house overpriced at $117,900? Underpriced? Is $107,900 overpaying for the property?
The comparables will tell you what kind of offer $107,900 is, and you'll have justification to back up any offer you submit. The question is - where is the seller getting their number from - and do they have justification for "why" the property should sell for where they have it priced?... more
Hi Ray, Rent to owns are sometimes a challange to find and usually the terms are not that appealing to the buyer/renter. There are a few rent to owns in Portage that I am aware of. Another option is to work with an investor who purchases the home and sells it back to you on land contract. I work with a few investors in this market that do this however they will require a down payment. Feel free to give me a call and we can discuss more. Thanks. 608-617-0413... more