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,
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.
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.
Licensed Realtor in NJ and GA
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.
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!
Prudential NJ Properties