How are you? Seems as though your search for a new home is becoming a little frustrating for you. A forum like this is great to ask general questions but I would suggest that you select an agent who can work with you & for you to not only show you various options which fit your needs but also negotiate favorable terms on your behalf. What Janet says is true but based on the information you've provided it sounds like you're creditworthy & financially sound so what is your rationale for wanting to "rent to buy"? Feel free to check out this nice 1bdrm coop available http://www.postlets.com/res/8294009 & the seller may very well entertain your offer. It's being shown tomorrow 12pm if you're interested in seeing it.
Licensed Real Estate Salesperson
Apartment updates available at http://www.christinegordon.postlets.com
"Home is where the heart is."
If you want to rent first with an option to buy rather than approaching sellers that want to sell immediately in a hot market find a condo or coop that is for rent and put a rider in the lease giving you first option to buy if and when owner decides to sell.
All my rental deals in coop and condos include such a rider as long as both owner and tenant agree. The sale price is not agreed upon at the time the lease is signed but within 60 days from receiving notice that the owner decided to sell. You then have first option to buy if you and owner agree on price and terms.
In my experience, I have found that many New Yorkers want to hold on to their NY apartments when life circumstances change such as relocating for job, marriage family etc. At first they rent their NY apartment because they want the option of being able to come back but once they eventually accept their new life in a new place they usually sell.
The first question almost every buyer asks at every NYC listing is "what is the sublet policy" They want the option to rent. So you want he option to buy. It is not unusual.
A coop may even be a better option than condo because many coops only allow the shareholder/owner to sub-lease for two years. After two years the owner is required to move back or sell.
Lic. Assoc. R.E. Broker
I am a little unclear what you are asking, but it seems that you would like to rent with the option to buy and homeowners are not willing to do this. If I am interpreting your question correctly, I can tell you that "rent with an option to buy" is something sellers only do in a very bad market. It is something sellers do when they cannot find a buyer, so they allow a buyer who is not quite able to buy yet, perhaps still saving toward the downpayment, a chance to live there, pay rent, and purchase later applying some agreed-upon portion of rent paid. When we were in our housing crisis of late 2008 and 2009 here in NYC, developers with unsold condos were offering that for a time.
We are, however, in a very robust market now. Sellers can sell easily in most neighborhoods and do not need to offer this option.
Halstead Property, LLC
Most Buyers are not aware of the pitfalls involved.
There are no standard forms, nor are there standard numbers that can be assigned:
The Agreement can be drawn up by anyone, and can include any provisions that the parties will agree to.
This is a blurb that I use to caution buyers about L/O:
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!
The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?
This is the Ultimate Caveat Emptor!
Lease-options tend to be more difficult in many markets because, often, a prospective seller needs to sell in order to take whatever next step is planned. For instance, a seller may want to buy a different house, but knows he/she won't be approved with that first mortgage hanging overhead. Or the seller needs the cash from the first sale to make the second purchase. In that case, a lease-option isn't usually practical.
An owner with a rental, similarly, may not be interested in selling. There could be tax considerations. Maybe the rental is just a cash cow, and the owner likes the $500 or $1,000 or whatever that he/she is netting every month.
So the owners who are the best targets for lease-options are ones who are willing to either rent or sell, but don't need to cash out immediately. And that's a comparatively small percentage. I wrote a blog on how to find some of them. See http://bit.ly/findaleaseoption
Also, just understand human nature. People will generally say "no" to a proposition that they don't fully understand. So you have to approach the prospects the right way. Quick example: When I was telephoning potential lease-option sellers, I'd never ask: "Would you consider a lease-option?" It was more along the lines of "Would you be willing to rent now and possibly sell in 3 or 4 years?" That's something people could easily understand.
Hope that helps.
As was mentioned below - most sellers want to sell when they put their home on the market - not come up with an creative contract for a future sale.
Usually there are financial reasons why a seller will consider this kind of arrangement .......and also financial reasons why a buyer might be looking for this kind of arrangement.
If I want to buy a coat, I go into the store and buy it. If I don't have the financial resources to buy it now.......then - I might consider a layaway arrangement, even if it involves losing the deposit....that's sort of what rent w/ option is like.
You can't fault a seller who wants to sell NOW, rather than wait for a later time frame.
So, out of curiosity - according to what you shared - you are financially solvent - why are you looking for this kind of arrangement?
You mention how qualified you are in your question. If this is the case, I would think you have a good amount of liquid assets. I also think you are not with a broker. You want things your way but owners don't need to do what you want just because you want. Good luck.
Why is everyone skeptical? Our economy is the free enterprise. Devil is in the details.
Is it unusual......?
Homeowners, for the most part, what to sell their home...NEED to sell their home in order to buy a new home or separate themselves from the burdens of continuing to own that piece of real estate. Only when the owner KNOWS they will be better of even if you don't buy, should they entertain your offer.
They are not skeptical...they are business folk making business decisions.
Why don't you BUY instead? You state you are able. You have credit history. Your choice of purchase options look just like that of those who are unqualified to buy. It's like an obese person giving weight loss advise...things just don't seem right.
Give Christine a call and I'm sure she can get your proposals presented to the RIGHT seller and in the RIGHT context with the RIGHT assurances in place.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
Big Water: http://youtu.be/S7xjAs52MiI
Licensed Real Estate Associate Broker
681 Lexington Avenue
New York, NY 10022
Phone 212-688-8530 x223 Cell 917-991-2528 Fax 212-758-7495
House values change; how do you agree on a purchase price that is fair to all involved? One of the great mysteries of rent to buy.
If you have such a good history, great credit rating, why not just purchase?
I agree with the other posters. The agreement makes or breaks the transaction. If it isn't written properly, it can favor one side or the other, a recipe for disaster. Writing a fair deal is hard to do. A "standard" real estate agreement in Hawaii is 13 pages now.
I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.
Wishing you all the best,
De Vonte Williamson
Licensed Real Estate Salesperson
Proudly Serving Long Island
Coldwell Banker Residential
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