I have been in the business over 25 years and I don't remember ever seeing a rent-to-own situation work.
Most of the attorneys in this area do not recommend that scenario.
If the owner is living in the house, they might need the funds from the sale to go on to the next step in their life, they don't know you so they feel that they might be getting into a difficult situation.
I know some of my fellow brokers won't like this, but a note in the mailbox isn't a terrible idea, if you are shy about contacting an owner, I am sure any broker would do it for you.
If I can help in any way I would be happy to.
Homes of Westchester
i think it works well if you do not have the downpayment and your credit is not good. but it works in general also. its a very good option for the owner. he may not have to move, so his motivation is low. i would list the advantages to the owner and show him.
i would offer the owner a generous deposit and an above market rent with a portion of the rent going toward the purrchase price.
hope this helps
Besides, six months isn't that long for a home to be on the market. I've seen homes here in Northern Westchester on the market for more than a year at a time before selling. So, perhaps the homeowner is not yet desperate enough to get into an ongoing business deal with someone, rather than just selling his home. And you say "pre-foreclosure"...perhaps to him, that isn't that urgent yet?
Anyway, what is in it for you in a rent to own situation? Wouldn't buying be better? If you don't yet have the downpayment, then why not wait it out, as the market plummets?
Oh, and you SHOULD drop a note in the owner's mailbox in New Rochelle. I have a friend who sold her house that way...she got a note in her mailbox and an offer she felt she couldn't refuse!
Best of luck.
You are right that it would seem like a logical fit if a person were in trouble. However there are many factors that may be playing into this if the seller is in pre foreclosure. First off how deep are they in the hole? If they bought the property a while ago chances are that their home has equity, as Rye Brook has remained stable in this volitle period, but maybe they have not yet come to grips that this is a buyers market. If they are in way over their heads then a rent to own just does not do anything for them as the rent you are offering may not keep them afloat.
Also keep in mind their are several factors that may not make this a lucrative offer. How much of the rent are you planning to use towards the eventual purchase price? What exact sales price are you offering in relation to what they are asking? Finally any work that you may do has a risk factor as well. I live and work in Rye Brook so I know that the town is on top of any work that gets done. As a result current owner would have to be concerned with properly insured professionals doing the work and having proper permits. That does not even take into consideration quality of work, style, etc that will have an impact on sales price if you choose not to buy the property.
Certainly you should pursue this if it makes sense for you personally but many sellers, especially in pre foreclosure are not looking to become a landlord. But with interest rates recently dropping and an increase in inventory there maybe other options out there for you. If you have any questions, especially pertaining to Rye Brook please feel free to contact me.
Assocaite Broker Prudential Rand Realty
To keep the negotiation on a business level it may be best to seek the help of a broker to represent you.