Home Buying in 01540>Question Details

Bands, Home Buyer in Oxford, MA

we are currently renting a home the owner wants to sell should we offer lease to own

Asked by Bands, Oxford, MA Tue Apr 8, 2008

we would like to own the property in 30 months or less, we also will do all the upgrades it needs as we continue to pay rent along with an additional deposit amount

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While it would make sense to buy now, as the others suggest, I'm guessing that you feel you may not be in a position to buy yet. If that's the case and the owner doesn't need all of his equity out immediately, then, yes, a lease-option could be a very good solution.

From the seller's perspective (again, assuming he doesn't need his equity out immediately), his revenue stream is uninterrupted, as opposed to you moving out whenever your lease is over and the house sitting vacant. Also, if he were to put it on the open market, he'd probably have to do various repairs and upgrades--some of the sort you alluded to, and others that you might not care much about, but which might be necessary to sell it in today's market. Plus, as you indicated, you're willing to pay an additional amount--an option fee--thus boosting the owner's income while you continue to rent.

And from your perspective, you don't have to move. You're in a house you like, and it's one you know. You can build up option credits while you continue to rent, and your rent will still very likely be less than what you'd pay for a mortgage. And the 30 months will give you a chance to accumulate more of a downpayment as well as address any credit glitches you might have.

Sounds like it could be a win-win situation for you both.

Good luck.
1 vote Thank Flag Link Tue Apr 8, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Hi Bands,
I guess it all depends on why the owner wants to sell. If they need a quick sale and you are not prepared to purchase at this time you may be out of luck. You also have to consider that that sellers are understanding that time is money at this point. Are they willing to risk that the home will be worth as much in 30 months as it is now or that interest rates won't increase making it harder for buyers to get financing.

In all honesty, my advice to your owner would be to sell now if you are ready to sell. --- Mike
2 votes Thank Flag Link Tue Apr 8, 2008
Hey Bands,

This seems like a great opportunity to build your real estate and personal financial portfolio. Since you know the building personally I can see how it would be easy to purchase. Be sure you are happy with the local comps...what other homes have sold for.... And then consider having an attorney draft the Purchase & Sales Agreements. You might also to consider not improving anything in the building until you take title in 30 months.

Good Luck!

Karissa Moore
0 votes Thank Flag Link Wed Apr 9, 2008
Hi Bands,

Well this depends on a lot of factors, while renting your are not building equity owning a property does. First you should see what and how much properties similar to the one you are renting now , are going for. Last sale, how long was it on the market, how many current active listings are there, just to name a few. My advise is for you to contact a reputable Realtor in your area and let him/her do the job of researching the market and giving you the best advise. Good luck.
Leonardo
Web Reference: http://www.leonardoteam.com
0 votes Thank Flag Link Tue Apr 8, 2008
Why don't you buy it now? You will get to write off your interest payments and real estate taxes. Also you will capture any appreciation on the property over the next few years. Is the rent/lease payments that much less than a mortgage would be? You need to run the numbers. Good luck.....
0 votes Thank Flag Link Tue Apr 8, 2008
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