Home Buying in 07748>Question Details

cristinaxoxo, Renter in Holmdel, NJ

if i go into a rent to own property, will i be able to negotiate the price or will i be locked into the price its listed at?

Asked by cristinaxoxo, Holmdel, NJ Mon Jul 9, 2012

Help the community by answering this question:

Answers

12
Rent-to-own does not really exist and if it does exist, there are no bargains.

The houses/apartments are usually overpriced and sold to people that can otherwise "not" purchase a home and are somewhat taken advantage of. The chances of the rent to own scenario is probably not going to happen.

What will happen is you will get a whole bunch of Realtors telling you they can do it or have done it and really will be lookig to sell you something else. I am sure that there will be a bunch of people saying that I do not know what I am talking about and blah, blah, blah.. but, lets speak the truth. I have not seen one good rent-to-own situation that has worked.

Think about it.. you want to buy a place in a down market, telling the landlord that you will pay this amount -*next year*- and the market goes through the roof.. guess what happens to you and your rent-to-own.... over.

If it works out for you and you find one.. let us know!
1 vote Thank Flag Link Mon Jul 9, 2012
I agree with John, this whole concept has always befuddled me. If you want /need to rent, find yourself a rental that suits your needs and budget. If you want to consider a purchase down the road, and you think the owner of the place you are renting may consider a future sale, ask for the courtesy of the right of first refusal.

Good luck and best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Thu Feb 20, 2014
There is really no set standard. There are so many variables- it depends on what the buyer and seller agree to ahead of time. Be sure to have your attorney review and discuss your options. Good Luck!
0 votes Thank Flag Link Sun Feb 16, 2014
Christina,

Option to Buy ...Rent to Own...can mean so many different things.

You'll probably need a good realtor to explain the 'possibilities'..and a good attorney to make sure that the 'possibilities' are in writing.

If I can offer any additional help, please feel free to contact me.

Peggy
0 votes Thank Flag Link Sun Feb 3, 2013
Hi Christina..I was just wondering if you have found a lease/purchase home yet?

Please give me a call if you are looking for an agent, My husband and myself would be happy tp help you.......

Thank you,

Diane
Heritage House Sotheby's International Realty
732 859 2376 cell
0 votes Thank Flag Link Tue Jul 17, 2012
Rent to Own isn't any different from any home purchase - every step is negotiable. If you don't like what they're offering, then make a counteroffer, and vice versa. You have the option to not rent it if you don't like the terms. Be sure you're working with a Realtor who understands Rent to Owns and has worked with them successfully - the waters can be rough, and a good negotiator on your side can make all the difference in the world! Good luck!
0 votes Thank Flag Link Thu Jul 12, 2012
I would be more worried about what the mortgage underwriter will say about the contract when it comes time to pay the full price. Trust me, it won’t be what you expect. “Buyers” and sellers believe whatever they write up is the final agreement, doesn’t work that way when it comes time to arrange the take out financing. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Wed Jul 11, 2012
The sales price will depend on the price you put in your lease. There are 2 different ways to do it: rent with an option -- which gives you the option to purchase at the end of your lease term, or lease/purchase -- whereby you have to purchase the home at the end of your lease.
Depending on the market you are looking in, home prices could be appreciating. A well informed seller will know this and want a price that will be greater than it is today.
Your best bet is to do as Bob Haspel mentioned, and write a right of first refusal into your lease, should your landlord decide to sell the property.
Good luck!
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Wed Jul 11, 2012
the simple answer to your question is the terms of your lease to own contract will dictate. Typically this is done via a lease purchase agreement where a portion of the rent would be applied towards purchase at some future date if you as buyer consumated transaction. Often a slightly higher than market rent is paid during the lease. The buyer has a agreed upon price which may have no relationship to list price that they CAN purchase home for. As it is an option the buyer/tenant does not have to buy though seller would be required to sell. If buyer doesnt go thru with purchase they will have paid a higher rent than market as compensation to owner/seller for the risk they took. If the market value drops considerably you may be able to renegotiate with seller but there are no guarantees. (especially if you have invested in home repairs/improvements while a tenant.) If prices go up you win, unless mortgage rates etc go up to point where you cant afford to buy. lease purchases are an option but very rarely used in residential sales.
0 votes Thank Flag Link Tue Jul 10, 2012
Very simple just put a right of first refusal clause in the lease so that you can have first shot at buying if the owner sells the property. Lease purchases very rarely work out in a residential situation unless dealing with someone on a very personal level. There will be many good buying opportunities in the years to come. Save your money and be patient.
0 votes Thank Flag Link Mon Jul 9, 2012
I like Dennis' answer for you. Keep in mind that you are not obligated to buy but the seller is obligated to sell to you if you choose to exercise the option. Keep in mind too that we are still, in most areas, in a declining market. I'm hoping you have an agent who will help you to factor in the trend for your area when you negotiate a price.
0 votes Thank Flag Link Mon Jul 9, 2012
Cristina - you can negotiate the terms of the contract prior to signing. You are only limited to the extent of what is acceptable to all parties involved. After signing you are confined to the terms of the contract. If this is more along the lines of an option to buy at the end of the lease period, then you are faced with another decision, of whether to exercise your option and purchase at the predetermined price or walk away or try to negotiate a better price to purchase or negotiate an extesion on the lease and option.

So, negotiations are never ending. Each step is negotiable, as long as, someone is willing to change a predefined term or condition.
0 votes Thank Flag Link Mon Jul 9, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer