Foreclosure in 44212>Question Details

Scottar, Home Seller in

We've been facing the perils of the NE Ohio market since we put our house up for sale in February. We've had

Asked by Scottar, Mon Oct 22, 2007

two offers (one fell through because the buyer could not get financing (foreclosure) and the other was exceptionally lower than asking and we could not arrive at an acceptable comprise price). We've been working with the same Realtor from the initial listing. We need to sell as we're paying two mortgages, but we also need to pay off the bills.

We've recently been approached by our Realtor to evaluate a Lease to Buy offer. We've never owned rental property, so we're looking for any additional info on this subject. Any insight would be appreciated.

Help the community by answering this question:

Answers

6
Durenda Fachtmann CEC CRS GRI’s answer
Scottar

By your home being on the market since February 2007, the comparable sold properties were probably sales dating as far back as February 2006.

Lending guidelines have changed significantly this year.

Currently most lenders require their appraisers to use comparable sold properties no older than 3 months.

In order to establish your current market value, ask your realtor to re-evaluate your property using comparable sold properties no older than the past 3 months.

If your property is in good condition, and shows uncluttered, clean and fresh, to get a contract and sale in reasonable time in this static or declining market, price your property AT VALUE.

Most sellers want to price at value + (room to negotiate)

There are buyers out there and they are and have been buying.

The buyers have much more inventory within their given parameters than they have in the past few years. They are taking their time shopping, seeing everything, and first hand learning values, and trying to find the best deal

When they see a property priced at value, that property stands out as a good deal and is typically the property chosen to make their offer.

Of course they will come in with an offer, that is only prudent. However in smart negotiating when the seller counters back to reasonable value, the buyer "justifies" (in their mind) the value of the counter, which most of the time results in a good value contract for that seller.

If a seller is upside down in the loans secured by their property, lease-option, lease-purchase, or rent until the market rebounds is a viable option.

You have received good advise to seek the guidance of an attorney.
Consider seeking the adviese of a local real estate attorney.

Best of luck in the disposition of your home
0 votes Thank Flag Link Sun Dec 9, 2007
i am looking for a single house in bruswick 130000 not mroe than 3 yrs old 3bed room, 2 full bath living, dining 2 car garage . if your home matches my needs you can communicate with me (Sam) at Lwmm@msn.com

Thank you
0 votes Thank Flag Link Sun Dec 9, 2007
Usually when I advise a lease or lease option situation for a seller, they have two mortgages or just are not able to continue coming up with the mortgage on their own. A renter can help relieve the financial stress. However the caveat is that you have to make sure your neighborhood can support the montly rent you would charge. In NE Ohio we traditionally as owners/landlords pay the water and tenant pays gas and electric. What are your mortgage expenses. Is your home priced right in order to sell? If you had to price it higher than necessary in order to pay the mortgage, you might consider talking to your mortgage lender and seeing if they would take less for your home. How does the condition of your home stack up to the competition at the same price? I know it can be hard to hear that your home might be over priced (and I am not saying yours is, I don't know your home!) but pricing when so many homes in some communtiies are on the market, can be so critical. I would talk with your agent honestly and explore all of your options.
0 votes Thank Flag Link Sat Nov 10, 2007
A lease option should be a very good option in our current market. Make sure you have a good deposit and do a credit check. If you can afford it I would have a Mgmt. company handle everyting. Most charge a setup fee plus 10% ofthe monthly rent.
0 votes Thank Flag Link Wed Oct 24, 2007
Lease to own is growing in popularity, largel because so many people have lost homes and can not buy again for some time. They need somewhere to live and usually because they have had a home, they have stuff or kids or other things that make an apartment an impossibility. IF you decide to pursue this opetion, CHECK THEM OUT THOROUGHLY. Run the credit check,run the criminal check and sit down with them to interview them just as if they were asking for a job. Khow the renter and establish parameters. How long will they rent. Will they buy at the end of the lease? Do they expect any portion of the rent to go toward the purchase. What are the options if they can not or do not get the mortgage. The words CONSULT AN ATTORNEY come to mind.
0 votes Thank Flag Link Mon Oct 22, 2007
Two questions that I think you want to ask yourself before you go into looking at a lease purchase option. What do you need to net in proceeds from the sale of your home? Is your asking price at that right now? If so and you have not had any offers then looking at the lease/option may be an alternative, though they typically have a one to two year time frame.
Web Reference: http://www.northropteam.com
0 votes Thank Flag Link Mon Oct 22, 2007
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Ohio > Medina County > Brunswick > 44212 > Foreclosure in 44212 > Question
Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer