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Chris, Other/Just Looking in Chicago, IL

looking for rent w/option to buy in tri-taylor. What's out there? Chris

Asked by Chris, Chicago, IL Fri Jan 22, 2010

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Unless I missed something in his question....He's not asking for opinions as to whether a Lease Option is a good or bad idea, why they are "misunderstood", or analysis compared to short sales & foreclosures.

It's like if someone said they are going to propose to their girlfriend and were looking for a romantic spot to do it. Then someone comes in and starts telling him that the divorce rate is 50%, and that a pre-nup is a really good idea, saying that he and his wife-to-be are going to possibly gain weight on the honeymoon, and giving him details why being single could have advantages over marriage. Oh...by the way...he was just trying to find a place to get on one knee to propose...remember?

Now....as I step back down off my soapbox..... :)

He's stated that he is looking for one and would like to know what the inventory is in the Tri-Taylor area.

Granted, I'm not familiar with the Tri-Taylor area, but Lease Options aren't that plentiful on ANY MLS. Some other avenues you may want to look at would be your local "For Rent" ads in the newspaper or Craigslist or other similar sites. Some of these people have had to resort to renting their property because they or their Real Estate Agent were unsuccessful selling in the first place.

Many times...Lease Options are created instead of being advertised.

Best wishes!

Darin
Lease-to-Own Professional
Independent Consultant
1 vote Thank Flag Link Sat Jan 23, 2010
There are some desperate sellers out there that would be willing to a lease w/option. I push all my tenant/buyer clients to get a lease w/option in the event that they like the place. It is good to lock in a purchase price now rather than later. Since I am a landlord, I know how to talk to other landlords where other agents may hesitate because it is more work and the payoff is a year or more away. Give me a call or drop me an email.

Regards,

Mark
Web Reference: http://www.markmalave.com
1 vote Thank Flag Link Fri Jan 22, 2010
Most of the other are pure and simple cases of FUD (Fear, Uncertainty, and Doubt).

I agree 100% with Darin: most lease-options are negotiated--not listed.
0 votes Thank Flag Link Sat Jan 23, 2010
Chris,
I have to agree that rent with options are not that great. I rarely see people ever exercise the option. Especially in this market. Prices are coming down slowly, not going up. So why get locked into a price, that 6months or a year from now, may be worth less. However, if this an option that you really want to explore, I suggest grabbing an agent that has experience in doing these. This way you will have someone to walk you through the process at no cost to you!

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlamericorp@aol.com
708-250-2696
0 votes Thank Flag Link Sat Jan 23, 2010
Hey Chris,

Rent with an option sounds like a good idea on the surface, but consider the following:

1. Most of the good deals out there are in short sale and foreclosure. A short sale will not allow an open ended time frame for closing the purchase, as an option would require, and and REO will defiantly not. The strike price, or option price, that you will find will likely be higher than the current market price and you won't really be getting a deal at the current prices.

2. Interest rates could likely climb and this would affect what you'd be willing to pay for the property. Simply put, the higher the interest rate, the higher the monthly payment, the less you can afford.

3. As stated earlier, you may miss out on any current incentives, like the tax credit.

If you're considering buying, but what's holding you back is saving for a down-payment, check out what may be available to help you, such as the IHDA Homestart Program. Home start was created so buyers could effectively use the tax credit as collateral for their downpayment. I'm not certain they have extended the program with the tax credit, but it may be worth checking out. I attached a link for you. You may also want to get involved in a downpayment savings program, that helps you with matching funds. There are a few out there for those that qualify.

Best of Luck.

Wayne Beals
Realtor
Keller Williams Chicago Consulting Group
312-77BEALS
312-772-3257
wbeals@kw.com
0 votes Thank Flag Link Sat Jan 23, 2010
I would generally advise against a rent to own option as often rent to own option terms favor the seller- not the buyer as stated by Philip. In addition, a renter would miss out on the $8000 first time home buyer credit (or $6500 credit if not a first time home buyer) if they choose to rent to own instead of buying out right.

However, in the tri-talyor area, there are homes available for sale through the City of Chicago affordable housing program where if you make under $53000 a home may be sold to you "under market value". In addition, the city would hold a second mortgage for a portion of the home and forgive it outright after five years under certain conditions. (mainly- you keep that home as your primary residence, you keep current on your payments, and you don't make too much money)

If you'd like to learn more, feel free to call me at 773 770 7530.

Jeff Nobleza
Baird & Warner Real Estate
0 votes Thank Flag Link Fri Jan 22, 2010
Rent w/option is often misunderstood, is usually to the benefit of the selller, usualy a poor choice for the buyer and mostly rejected by sellers because they just want to cash out and move on.
The odds of finding a rent/option in Tri Taylor is slim, but if you give me some criteria I can send you what's out there and you can see for yourself.

philip
0 votes Thank Flag Link Fri Jan 22, 2010
Hi Chris

I work with an agent that maybe able to help you in that area if your interested?
Take care!
0 votes Thank Flag Link Fri Jan 22, 2010
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