Home Buying in West Orange>Question Details

Melly, Home Buyer in 07052

A friend of a friend is selling their house. They do not have an agent and do not want one but are relocating for work in three weeks. We want to use

Asked by Melly, 07052 Sat Jan 5, 2013

an agent because they want what the house is worth or rent to own. Is it good to buy a house at market value in West Orange? Do people still rent to own?

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Here's a West Orange market analysis to help you in your decision making, http://bevandbobhomes.com/?p=7334 . Call me so you can succeed.
0 votes Thank Flag Link Thu Jan 17, 2013

They want what the house is worth . . . and you don't want to pay that. OK, I don't think you're going to put a deal together, but it's possible.

You want to "rent to own," because . . . well, it doesn't matter. RTO is a sucker's game - you're going to overpay for a property that you probably wouldn't buy if you could qualify for a mortgage, from a seller that might not uphold their end of the bargain.

My suggestion is: your friend's friend doesn't need to have an agent, but you do. You need to find a good house to buy, terms be danged. If you can't qualify for a mortgage, then you need to sit on the sidelines until you can.

All the best,
0 votes Thank Flag Link Sun Jan 6, 2013
If you cherish your friendship, don't do it! I know that doesn't sound like a realtor answer but it's probably not wise to move forward on this. If you like, many agents , like myself , will represent you as a buyer agent, but especially when dealing with friends you need a buffer.
0 votes Thank Flag Link Sun Jan 6, 2013
Just because they don't have a Seller's agent doesn't mean you cannot have a Buyer's agent. In most cases the seller will pay a commission to the agent or you can pay the agent. Being friends makes it difficult for you to negotiate. An agent will know market value and have the impartiality to get you a good price.

As to market value, a house is worth not just what a buyer will pay, and this is important, but what a bank will appraise. The only time that won't matter is if you are an all cash buyer. And why would you want to pay more than what it's worth?

I do not recommend rent to own however, if you rent, you can request a "Right of First Refusal" clause so you can have first chance at buying. If you can, I recommend buying now. Interest rates and prices are at their best.

If you would like me to represent you in the transaction as your Buyer Agent, just call me and we can discuss in detail how that would work best for you.
0 votes Thank Flag Link Sun Jan 6, 2013
Using a realtor who is familiar with the market in that area can help you to understand the market value of the home by showing you sales data on comparable homes. Rent to own is a rarity.
0 votes Thank Flag Link Sun Jan 6, 2013
Market value is determined by how much a buyer is willing to purchase a home for which is analyzed by a market analysis which weighs in the comparable homes that were sold.
So to answer your question, homes in West Orange are sold at market value all the time.
Are you interested in purchasing your friend's house? Remember you can always see if the sellers are willing to negotiate on price. Buyers offer below asking price all the time, but its up to the seller what price they want to accept for the home.
Consider hiring a realtor to negotiate on your behalf.

Laquita Baez
Licensed Realtor in NJ and GA
Weichert Realtors
0 votes Thank Flag Link Sat Jan 5, 2013
I feel homes ARE sold at market value. I dont see many "rent to own" because most need the money for their next move. My name is Cherre Schwartz 973 951. 6665. if you want to talk further. Good luck.
0 votes Thank Flag Link Sat Jan 5, 2013
No, most people do not do "rent to own" because there are a lot of pitfalls involved, and these transactions usually favor the seller.

Most sellers who can, and want to sell - sell their homes sooner (now), rather than later.

With a traditional "rent with the option to buy", the sale price is decided now, not when the purchase will take place.
If the buyer cannot qualify now for a loan, he or she better make darn sure they will qualify later, as there will be NON-refundable upfront money that will be forfeited if the purchase cannot be completed for any reason.

If the seller is under any financial distress, and stops making mortgage payments - the tenants/buyers will have no protection, and may also lose that upfront money.

If you do not have the deposit money now, you may be asked to pay an amount of rent over and above the normal rent.......that "overage" would be used towards the purchase, or forfeited if you do not or cannot buy the home.

Please make sure you know what you're getting into before entering this kind of arangement.

If you'd like to speak with a real estate attorney, I'd be happy to give you some names.

My advice??

If you can - buy now (make sure you will be staying in the home for at least 5-7 years).

If you are unsure of what this house may be worth........ask the sellers to allow you to have an agent preview it, and do a market analysis for you.

If you are not in a position to buy now, then simply RENT, with no strings attached..........you can also ask any local agent for comps as far as rentals are concerned.

Please let me know if I can be of further help!
Best wishes.......

Debbie Rose
Prudential NJ Properties

email: Debbie.Rose@PrudentialNewJersey.com
0 votes Thank Flag Link Sat Jan 5, 2013
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